Foreign investment in France: Key trends, legal considerations (2024)

France remains a top destination in Europe for international investments. In 2023 alone, France attracted over 1,800 foreign investment projects, creating or safeguarding nearly 60,000 jobs, especially in strategic sectors such as R&D, green technology, artificial intelligence, and manufacturing. Significantly, regional areas outside Paris received more than 80% of these foreign investment-related jobs, highlighting a growing regional dynamism.

Regional highlights and examples

• ProLogium, a Taiwanese firm, announced a €5.2 billion battery factory in Dunkirk, creating approximately 3,000 direct jobs.
• EMME, a Franco-Swiss joint venture, is establishing a battery recycling plant in Bordeaux’s port zone, generating 200 jobs.
• AstraZeneca invested €365 million in expanding its production lines in Dunkirk.
• Major corporations, including Microsoft and FertigHy, committed billions to regional infrastructure in energy and digital sectors.

Legal essentials for foreign investors 

Foreign businesses commonly choose the simplified joint-stock company structure (SAS) for its flexibility, minimal regulatory burden, and easy management of share transfers. However, investment in sensitive sectors may trigger French foreign direct investment (FDI) regulations, necessitating detailed filings with the French Ministry of Economy regarding shareholding structures, ultimate beneficial ownership, and strategic rationale.

Cross-border transactions often involve careful due diligence, notably in employment law compliance, environmental liabilities, and tax structuring, to mitigate risks and ensure smooth integration. These legal steps highlight the importance of specialized legal support when entering the French market.

DELCADE: Comprehensive legal services leader in French regions 

DELCADE is a full-service law firm with recognized expertise in providing comprehensive legal support for international businesses investing in French regions. With strong regional roots and an international outlook, DELCADE advises foreign investors through every legal step of their market entry, ensuring compliance and risk mitigation.

Some resources for international entrepreneurs:

• www.enter-france.com: A platform connecting foreign investors with trusted legal, accounting, relocation, and immigration professionals across France.
• www.frela.law: A specialized legal resource focused on foreign real estate investments, business structuring, and immigration solutions.

Master franchising in France: Legal essentials and market insights (2024)

France continues to be Europe’s leading franchise market, boasting over 2,000 franchise networks and around 90,000 franchised units, generating an annual turnover exceeding €88 billion. In 2024, sectors such as fast food, automotive services, and home improvement continue to expand robustly, while apparel and beauty sectors undergo consolidation.

Why international brands choose master franchising 

Master franchising is increasingly favored by international brands expanding into France, enabling effective local market penetration while maintaining brand integrity. Prominent examples include Carl’s Jr., Leonidas, and Muy Mucho, each significantly extending their market presence through strategic master franchise agreements.

Key legal considerations for franchisors

In France, franchisors must strictly adhere to disclosure obligations, particularly the mandatory Document d’Information Précontractuelle (DIP), provided to prospective franchisees at least 20 days before contract execution. The DIP must include comprehensive financial data, contractual terms, market insights, and territorial exclusivity details. Failure to comply accurately may lead to legal challenges or franchisee claims.

Additionally, franchise agreements must align with French and EU competition regulations, particularly regarding territorial exclusivity clauses and restrictions on online or cross-border sales. Proper contract drafting and adaptation to local regulations are essential to mitigate litigation risks and ensure successful franchise development.

DELCADE: Cross-sector expertise in franchise law 

DELCADE offers comprehensive and cross-sector legal expertise in franchise law, assisting international franchisors with all legal aspects of their market entry and expansion. With multidisciplinary teams experienced in franchise regulation, DELCADE ensures legal compliance and facilitates effective strategic development.

Resource for franchise project holders

• www.frenchmasterfranchise.com: A dedicated legal resource site providing practical guidance and insights for international franchisors exploring or expanding in the French franchise market, curated by Benoît Lafourcade.