Franchise-Guide

How should you look for the right franchise system?

How should the right franchise concept be chosen?


Potential franchisees should hold in-depth discussions with franchisors they are interested in as well as with their franchisees, whereby it is better that the potential franchisees select the franchisees they wish to talk to themselves.

When selecting a suitable franchise concept, it is not only important to analyse hard numbers – such as investment sums, average sales and margins – but also to take “soft factors” into account. The mutual wavelength between the franchisor and the franchisees is a serious criterion that should be considered when choosing a franchise. Furthermore, attention should be paid to personal commitment and entrepreneurial features as well as mutual trust and the manner in which the partners are treated.

A candidate’s personal requirements, professional experience, specialist qualifications and financial conditions should match the franchisor’s candidate profile. It is not an easy task for franchisors to select future partners and larger systems have developed multi-stage selection processes for potential candidates.

Both sides should make as few compromises as possible in this matter as otherwise the success of the business could be jeopardized. Only those franchisees that identify with the franchise concept will be able to represent the franchise system successfully. A mistake could have serious consequences for the system which generally cannot simply be solved by terminating a contract.

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