Frequently Asked Questions

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.

Does franchising reduce the risks of a business start-up?

According to the study “Franchising – A guarantee for success for business start-ups”, which was published by the International Centre for Franchising and Cooperation (F&C) at the University of Münster in 2005, the failure rate among franchised businesses is considerably lower than among traditional business start-ups.

Whilst those entrepreneurs who start up a business in the “traditional” manner have to first find customers through expensive marketing measures, franchisees generally benefit from working with a well-known brand, from the network’s market presence and from the confidence the customers already have in the brand. Many mistakes can be avoided thanks to the tried and tested business model, the system-specific training courses and the competent support given by the head office. This makes it possible for the franchisee to build up his/her business more quickly and achieve a higher average turnover.

Even the best franchise system, however, cannot guarantee a franchisee’s success. The most important factor for success is the franchisee himself with all of his experience and skills as well as his potential and commitment to the business.

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