General questions about franchising
In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.
What are the franchisor's undertakings?
Although franchise packages cannot guarantee profitability for the franchisee, the factors necessary for success should be taken into account in order to reduce the franchisee’s risk of failure. Franchisors should not simply transfer a product or service to the franchisee. According to the European Code of Ethics, they should also transfer the rights to use the brand name and any other distinguishing signs recognised by the clientele as well as access to knowledge gained from experience, know-how, technical and commercial methods and procedures. They are thus transferring a comprehensive and confidential business concept with a proven track record that helps the franchisees to operate within the business format.