Franchise-Guide

Why should you become a franchisor?

How can franchise systems develop new fields of activity?


Most of the new activities for franchise systems have resulted from changes in framework conditions. The following should especially be mentioned:

Demographic Changes
Changes in demographic framework conditions have led to changes in demand and the emergence of new requirements. In industrial countries the increase in the amount of elderly people in relationship to the total population, the increase in number of women working and the greater number of single people and single parents have all played a role.

Social Changes
As a result of the apparently threatening environment many people have tended to retreat into their private spheres, which they are reluctant to leave or only when all risks have been eliminated. The complexity of today’s living conditions and the rapid changes in all areas of life result in the need for solutions to new problems, which can be found in the form of assistance or security. On the other hand people wish their uniqueness to be recognised and require that there be an increased individualisation and specialisation of the present supplies on offer. They look for products and services which not only bring their owners pleasure but also social prestige.

The new forms of information technology have resulted in an inflation of contacts. People with no previous technical experience can now operate all kinds of electronic equipment which even react to oral commands. Computers, which are becoming smaller and smaller, relieve people of their work, organize their everyday life and provide entertainment. Virtual worlds supplement the real world and create a new kind of freedom and places of refuge.

Political Changes
Bureaucratic rules and legal regulations are above all hindering trade from offering new products and services. They are protecting the decrepit market structures, ensuring the survival of out-of-date trade forms and preventing the free development of market forces. The removal of market regulations and restrictions on entering the market, which is now occurring, is creating space for innovative offers.

Technological Changes
Technological changes have resulted in the emergence of many new requirements and offers. Thus nowadays, in the course of digitalisation, information technology and telecommunications are merged into one joint multi-media system, which allows immediate access to data, pictures, tones and film sequences via a computer. Technical progress is making it possible for some companies to draw up comprehensive solutions to problems or selective offers for customers within a very short period of time once they have found out the individual requirements. Besides this modern information and communications technology is speeding up the globalisation of markets which has been happening for decades.

The efforts towards achieving integration also include other important forms of technology such as air, water, heating and energy systems. New kinds of air filters and heating systems ensure that homes and work places are healthier places to be in. Companies and even private households are installing water treatment systems and waste disposal systems. Energy is being produced more and more on site by solar panels and being used in a mobile way.

In the field of security technology, new kinds of personal identity systems are being used to protect property from unauthorized people. These range from the supervision of private homes to the protection of computer systems and the protection of electronic trade.

Further expanding markets will result from the advances in gene and biotechnology. New products can, above all, be expected in the field of health care, plant protection and the food industry.

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