France will still have to pay a large amount of reparations. Though they mirrored the high reparations Napoleon I once had imposed on Prussia.
That won't be popular and relations would be sour for a while, but in the longer run without such a constant reminder, like the territorial lost, some reconciliation will be easier. Might not be at friendly terms right away, probably more of a casual business like nature.
Alternatively the German Empire might acquire some French colonies instead.
At the time the French Colonial Empire consisted of among (a few) others: Algeria, Ivory Coast, Senegal, Djibouti, Mayotte, Comoros, Reunion, Indochina, French India, French Polynesia, New Caledonia and the Crozet Islands.
IMHO Algeria seems unlikely as does French India, but Indochina might be a possibility, potentially combined with another or a few other colonies like for instance Ivory Coast.