We present experimental data and a theoretical interpretation on the conductance near the metal-insulator transition in thin ferromagnetic Gd films of thickness b approximately 2-10 nm. A large phase relaxation rate caused by scattering of quasiparticles off spin wave excitations renders the dephasing length L_phi < b in the range of sheet resistances considered, so that the effective dimension is d = 3. The observed approximate fractional temperature power law of the conductivity is ascribed to the scaling regime near the transition. The conductivity data as a function of temperature and disorder strength collapse on to two scaling curves for the metallic and insulating regimes. The best fit is obtained for a dynamical exponent z approximately 2.5 and a correlation length critical exponent u approximately 1.4 on the metallic side and a localization length exponent u approximately 0.8 on the insulating side.
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