Frequently Asked Questions

General questions about franchising

In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.

Who invented today’s ‘Business Format Franchising’?

The USA is considered to be the mother country of "business format franchising", from where the worldwide triumphal march of modern franchising began. It includes a complete package of tried and tested work methods of the franchisors which makes the exact reproduction of a successful system possible. Payment of franchise fees is agreed on in return for franchisees being given the required know-how, the transfer of rights and support to build up and manage their own businesses. The fast-food chain, McDonald’s, is considered to be one of the inventors of modern franchising which now has a network of about 30,000 restaurants around the world. Apart from a few small differences the design, organisation and products of McDonald’s are exactly the same in all countries.

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