Questions about selecting a franchise system
In this section, experts answer the questions most commonly asked by franchise candidates on how to search for and select a franchise system.
What is the best way to choose a franchise system?
The following six steps are decisive for choosing the correct franchise system:
- Choose the systems which suit you best and have the
companies send you the documents and information
- Compare what each franchisor has to offer and what is
expected of you and check whether the area in question is suitable for such a
concept and whether there is a long-term market for the system.
- Visit information and/or introductory events
organised by the franchisors as well as existing franchise businesses. Ask the
national franchise association and your bank for information on the
- Examine in detail the legal, tax and financial
questions which may result from such a long-term partnership. Timely advice
from specialists can save you a great deal of money.
- Explain to the franchisor, with whom you would like
to conclude a contract, why he should accept you into his system and what you
have to offer.
- Draw up business, financing and liquidity plans, based on the data which you have obtained, for taking part in the chosen system. It is also helpful if these plans are then checked by your bank and accountant.