What is a franchise / franchising?

What are the primary reasons for franchising being such a success?

In the past, franchising was primarily seen as a low-cost and low-risk way to sell products and services. Nowadays, however, priority is put on the use of a wide range of synergies that result from the standardization of company functions and the allocation of tasks among the partners.

Successful franchises unite the advantages of a large company with those of a small or medium-sized business, whereby the respective disadvantages can for the most part be avoided. The legal and commercial independence of franchisees is protected and yet they can still hold their own against much bigger competitors.

The following factors, among others, contribute towards the success of franchising:

  • own philosophy as a vision, motivation
  • efficient structures and documented work processes
  • unique features and competitive advantages
  • central market analyses and marketing measures
  • professional support from the systems head office
  • protected brand names, industrial designs, patents

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