French retailer Carrefour is facing legal scrutiny over its strategic shift toward franchise and lease-management operations, with the CFDT union alleging the move constitutes a "disguised social plan." The case reached the Evry judicial court on Friday, marking a significant escalation in the long-running dispute between Europe's largest food retailer and one of France's most prominent labor unions.

Since Alexandre Bompard took over as CEO in 2017, Carrefour has accelerated its transition to operating more stores through franchise and lease-management arrangements. This model allows the company to maintain market share while removing underperforming locations from its direct financial accounts. Under lease-management, Carrefour retains ownership of the business assets while independent merchants assume responsibility for operational costs, including employee wages.

The CFDT claims that 344 supermarkets and hypermarkets have transitioned to lease-management since 2018, affecting more than 27,000 employees. The union filed its lawsuit in March 2024, seeking €23 million in compensation for affected workers and demanding an immediate halt to further store transfers. CFDT delegate Erwanig Le Roux criticized Carrefour's approach, noting that while lease-management typically supports business expansion, the retailer appears to be using it for different purposes.

Earlier this year, the union attempted to block the planned transfer of approximately 40 stores to lease-management in 2025 through an interim measures request, but the court declared itself incompetent to rule on the matter in late March. With Friday's hearing representing the first substantive judicial examination of the claims, the outcome could have significant implications for how large retailers structure their operations and manage workforce transitions in France's tightly regulated labor market.