Franchise-Guide

Why should you become a franchisee?

Is franchising suitable for people coming from another field of business with no knowledge of the branch?


One of the services generally provided by a franchise system is an intensive induction course for franchisees before they start up their business as well as accompanying training and support measures. This makes franchising particularly suitable for people coming from another field of business.

The first step for a new franchisee is normally to take part in an intensive induction course either at the training facilities at the systems head office or in a test phase in an established business for the new partner must learn the franchisor’s know-how and quality standards in detail. For many franchisees, this is the first practical test as a self-employed person, often in a branch which they are unfamiliar with.

The training activities must be both extensive and detailed and generally they are divided up into an induction course and ongoing further training courses. Depending on the system, participation in such training events may by voluntary or obligatory for franchisees. Similarly, the training course costs may be included in the franchisee fee or may involve an additional charge for the participants.

Having completed the induction course, the franchisees should be able to deal with their customers in a competent manner and fulfil the minimum standards of the system. Such courses often include a wide range of topics such as marketing, sales, personnel, accounting, technology, computer programmes, product knowledge, selling techniques, rhetoric, time management, etc. Depending on the branch and the profile of the franchisee, the induction course can last just a few days or several months.

The induction course is often followed by further training courses and practical courses for both the franchisees and their employees in order to refresh and deepen their knowledge during the franchise contract term. Such events are also used to present new developments both in and outside the system.

Some franchise systems offer preliminary training courses or periods of work experience before the franchise agreement is signed to enable people interested in the franchise to reach a more informed decision. However, by allowing such test phases, franchisors run the risk of supposed applicants learning about the system and then setting up their own business as a competitor.

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