Gathering together such luminaries of franchising as European Franchise Federation Chairman Pierre Jeanmart, easyGroup Chairman Stelios Haji-Ioannou and British Franchise Association Director General Brian Smart, the Franchise Leadership Summit took place in Athens, Greece on February 2006 with unprecedented government support. As well as the afore-mentioned, among the speakers were the Greek Minister of Development Dimitrios Sioufas, the Deputy Minister of Development Ioannis Papathanasiou and the Deputy Minister of Economy and Finance Christos Folias.

"Delegates attending this extremely well organised event were rewarded and heard directly from the Minister of Development, who performed the official opening with an incredible knowledge and understanding of the importance that franchising could have in the future Greek economy," says fellow speaker Roy Seaman (Managing Director of Franchise Development Services and publisher of Franchise International and European Franchising). "He reassured delegates that they would involve key players in Greek franchise development in their future planning relating to all areas of small and medium sized enterprise activity so that they could be seen as a government listening to its people and willing to support wherever possible.

"He was supported by the Deputy Minister of Economy & Finance, who recognised the importance of encouraging franchising by supporting those already involved to help to grow their networks nationally, as well as facilitating the export of Greek franchise brands and encouraging individuals to recognise the benefits of owning and operating Greek franchises."

The topics covered by the speakers included the impact of global franchising on growth and employment, franchise legislation at EU and national levels, developing a multi-unit growth strategy and the challenges of financing the franchise industry. In addition, the CEOs of three Greek franchise chains shared their experiences, as well as two Master Franchisees from Germany and Romania, three specialist franchise lawyers and Economist Chairman Margaret Doyle.

HOW GREECE CAN BECOME A RECOGNISED HUB FOR MEDITERRANEAN AND SOUTHEASTERN FRANCHISE DEVELOPMENT
In his address Roy Seaman commented: "Greece could be destined to be one of the most attractive locations in the world for franchising. Its position as a Mediterranean and East European hub makes Greece an ideal location for franchise companies to establish their Regional HQs. Even though Greece is the home of just 11 million people, the flow of tourists and businessmen and women makes this country very attractive for many reasons. Greece has a well developed infra-structure that has been boosted by the development for the Olympic Games. Athens, in particular, is an excellent location for retail outlets, providing a springboard for international brands desiring a presence in this affluent and continually improving market.

"Demand is likely to grow in all sectors involved in franchising, especially those relating to high street retail, all areas of fashion, food and beverages, and restaurants. There will also be growth in the services sector, which embraces automotive, business to business, sales and distribution, home care, leisure and travel, print and design, property care, real estate and hotels. New franchises will relate to the future trends that we are already beginning to witness such as eBay stores, juice and smoothie bars, and even international marine rescue. The technology sector is also seen as a huge growth area for franchising in Greece, particularly those that are internet related. New areas of franchise growth will inevitably relate to the world-famous franchise brands that are not yet in Greece. For example, Lavazza will shortly be bringing Il caffÉ di Roma into Athens. The arrival of such new brands will help to stimulate interest in new restaurant concepts.

"Franchises in the educational and language sector are also expected to enjoy very healthy growth. Formal English training is estimated to be a €100 billion market worldwide and it is growing at 20 per cent a year. Although there are many places throughout Greece where you can learn English, few centres use high-end technology-based approaches to teaching. IT and business skills training are also emerging as significant markets in Greece. There is a particular need for these skills as corporate training is not widely available throughout Greece.

"When Franchise Development Services first became involved in franchising 25 years ago, there were little signs of franchising in Athens and Greece. In that time period franchising has grown 40-fold in the number of locations now established, the number of franchise owners and the number of people who are employed in the sector. I predict that within 10 years today's numbers will double."

THE FUTURE OF FRANCHISE LEGISLATION
Another highlight of the Summit was the speech by John Pratt, Chair of the International Bar Association's International Franchising Committee. "The regulation of franchising seems to be in fashion," he pointed out. "An increasing number of countries are looking to regulate franchising and this trend is unlikely to stop. Franchising is regulated in a number of ways. The most 'popular' is the imposition of obligations on those who wish to franchise their business to provide a minimum amount of information to prospective franchisees - disclosure. This is the approach adopted in the US, within Europe and elsewhere.

"In addition some jurisdictions regulate franchising by imposing franchisor/franchisee 'relationship' requirements; requiring the franchisor to show "good faith" in its dealings with franchisees; facilitating litigation to keep franchisors on their toes; using competition law as a method of regulating franchising; treating franchisees as consumers and giving them consumer protection rights; obliging the registration of franchise systems; and requiring pilot testing. All of these requirements, which vary from country to country, make international franchising a complex and expensive business. "The regulation of franchising and, in particular, laws regulating franchising are likely to increase. The general view in many countries appears to be that franchise disclosure requirements do reduce unethical franchisor behaviour and, therefore encourage franchising generally even though there appears to be very little information on which this view can be based. The final conclusion may well be that if you have sons and daughters that aren't terribly bright but need to earn a living encourage them to become franchise lawyers - increasing regulation will inevitably result in more work for lawyers but whether it will encourage ethical franchising, or indeed protect franchisees, is another matter!"