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65
ACTION COME-00
INFO OCT-01 EUR-12 EA-09 ISO-00 CIAE-00 EB-07 INR-07
LAB-04 NSAE-00 PA-02 SIL-01 USIA-15 PRS-01 /059 W
--------------------- 064806
R 111823Z SEP 75
FM AMEMBASSY BRUSSELS
TO SECSTATE WASHDC 4916
INFO AMEMBASSY TOKYO
AMEMBASSY BONN
AMEMBASSY THE HAGUE
AMEMBASSY LONDON
AMEMBASSY ROME
AMEMBASSY MADRID
AMEMBASSY PARIS
UNCLAS BRUSSELS 08106
DEPT. PASS COMMERCE
E.O. 11652: N/A
TAGS: BTRA, BE
SUBJECT: POSSIBILITY OF FRANCHISING TRADE MISSION TO EUROPE
REF: PARIS 20827
1. SUMMARY: EMBASSY HAS REVIEWED POSSIBLE RECEPTIVITY IN
BELGIUM TO USDOC SPONSORED SPECIALIZED TRADE MISSION IN FIELD
OF FRANCHISING. BELGIANS ARE REASONABLY FAMILIAR WITH
FRANCHSING AS INSTITUTION AND NUMEROUS AMERICAN AND EUROPEAN
FIRMS HAVE ALREADY PENETRATED BELGIAN MARKET BY THIS MEANS.
WHILE CURRENT ECONOMIC SITUATION IS NOT VERY ENCOURAGING
AT PRESENT FOR SUCCESSFUL OUTCOME OF SUCH TRADE MISSION THIS YEAR,
WE BELIEVE THAT SCHEDULING OF SUCH MISSION IN FALL OF 1976 WOULD
BE GOOD IDEA. HOPEFULLY ECONOMY WILL HAVE REVIVED AND INVESTORS AND
ENTREPRENEURS WOULD BE RESPONSIVE TO NEW IDEAS BEING
BROUGHT TO BELGIAN MARKET BY TRADE MISSION, END SUMMARY.
2. ORGANIZATION CURRENTLY EXISTS IN BELGIUM FOR
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FURTHERING WORK OF TRADE MISSION. MAIN BODY QUOTE
COMITE BELGE DE LA DISTRIBUTION (BELGIAN MARKETING
COMMITTEE) UNQUOTE HAS FORMED AN ASSOCIATE BODY CALLED QUOTE
BELGIAN FRANCHSING ASSOCIATION UNQUOTE. THE ASSOCIATION IN
CONJUNCTION WITH EUROPEAN FRANCHISING FEDERATION IS ORGANIZING
SECOND EUROPEAN SYMPSIUM ON FRANCHSING IN BRUSSELS ON OCTOBER
7-8, 1975. IN 1974 ITPUT ON A QUOTE OWN YOUR OWN BUSINESS SHOW
UNQUOTE.
THE ASSOCIATION HAS NOW SCHEDULED FOR SEPTEMBER 11-15, 1976
THE QUOTE THIRD OWN YOUR OWN BUSINESS SHOW UNQUOTE, UNDER GENERAL
RUBRIC FRANCHISE 1976.
THIS SHOW WILL BE HELD IN THE CONTEXT OF A MAJOR SALES EFFORT,
VISUMAT 1976, WHICH IS AN INTERNATIONAL TRADE EQUIPMENT
EXHIBITION.
3. IN DISCUSSIONWITH OFFICIALS OF BELGIAN MARKETING
COMMITTEE AND BELGIAN FRANCHISING ASSOCIATION, EMBOFF
FOUND GENERAL RECEPTIVITY TO NOTION OF U.S. TRADE
MISSION DEDICATED TO FRANCHSING WHICH MIGHT BE
MERGED IN ACTIVITIES OF QUOTE OWN YOUR OWN BUSINESS
SHOW UNQUOTE. ONE POSSIBLE APPROACH WOULD BE TO RENT FLOOR
SPACE IN SHOW, PROVIDE DESKS FOR MEMBERS OF TRADE MISSION ALLOWING
THEM TO MEET WITH INTERESTED BUSINESSMEN, AND ORGANIZE SEMINAR
BY MEMBERS OF MISSION FOR INTERESTED VISITORS. MR. BAPTIST,
SECRETARY GENERAL OF BELGIAN MARKETING COMMITTEE, AND
MR. JANSSENS, ADMINISTRATOR OF BELGIAN FRANCHISING ASSOCIATIN,
INDICATED THAT SHOW ATTRACTED FROM 500-750 HIGHLY INTERESTED
AND MOTIVATED BUSINESSMEN. AMONG AMERICAN PARTICIPANTS WERE:
BASKIN- ROBINS, DAIRY QUEEN,
AND TANDY.
4. QUESTION OF MAKE UP OF TRADE MISSION IS MORE COMPLEX.
BELGIAN OFFICIALS POINTED OUT THATMUCH DEPENDED UPON TYPE OF
FORMULA OFFER BY U.S FIRMS AND WHETHER OR NOT ITS IDEA OR LINE
HAS AS YET BEEN INTRODUCED INTO BELGIUM. AT PRESENT, HOTEL BUSINESS
IN BELGIUM IS DEPRESSED WITH TOO MANY DELUXE HOTELS IN FINANCIAL
DIFFICULTY. RESTAURANT AND OTHER EATING CHAINS HAVE ALSO NOT
DONE PARTICULARLY WELL ALTHOUGH THERE ARE CLEAR EXCEPTIONS IN
CASE OF BASKIN-ROBBINS, FOR EXAMPLE, FIRM STARTED PILOT PROJECT
AND HAS MADE VARIOUS ADAPTATIONS TO COMPLY WITH NEEDS OF BELGIAN
MARKET IT HAS BEEN SUCCESSFUL.
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5. IN CONCLUSION, EMBASSY RECOMMENDS THAT COMMERCE
CONSIDER FORMING TRADE MISSION ON
FRANCHISING AND USE QUOTE OWN YOUR OWN BUSINESS SHOW UNQUOTE
AS CENTERPIECE FOR MISSIONACTIVITIES.
IT SHOULD BE BORNE IN MIND THAT SHOW ATTRACTS MANYN
SMALL BELGIAN RETAILERS BUT ALSO FRAWS ON LARGER ENTERPRISES
THROUGHOUT WESTERN EUROPE.
6. MATERIAL AND OTHER DOCUMENTATION IS BEING POUCHED TO DIBA.
RENNER
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