General questions about franchising

In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.

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What is multi-unit franchising?

Multi-unit franchising is a fixed term that has been used in the USA for many years now. The term is used to describe franchisees who own several outlets or shops. » Read more

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Why are controlling measures carried out in a franchise system?

Among others it consists of the analyses of different business plans and reporting methods, the comparison of targeted goals and standards with the actual results of businesses, the phrasing and examination of guidelines as well as the carrying out of comparisons between the businesses themselves. » Read more

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What role do annual conferences play within a franchise system?

Annual conferences, which are often organized as an in-house or branch-specific event, often represent the annual highlight of a franchisee’s business life. » Read more

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How important are the regular meetings held within a franchise system to enable franchisees to exchange know-how?

Most franchise systems plan regular meetings for their franchisees in order to exchange know-how. This exchange of ideas supplements the existing communications network and is supported by the head office. » Read more

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What role do advisory councils play within a franchise system?

Within the framework of a successful partnership franchisees often have opportunities to have a say in or be involved in important company decisions. » Read more

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How are business tasks divided up between the franchisor and the franchisee?

Ideally, franchisors and franchisees are responsible for those functions and activities to which they are most suited as a result of their market position, their qualifications and their means. » Read more

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What are the economic effects of franchising?

The vertical cooperation within franchise systems result in a sensible division of tasks with each party contributing their own strengths to the business. » Read more

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What are the future prospects of franchising?

Innovations and specialisations require up-to-date sales forms and the franchising sales form is particularly successful for marketing services and products which require explanations and service. » Read more

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When did franchising really establish itself across the world?

Franchise systems could first really take advantage of its merits after the enormous consumer requirements of the post-war period had died down and customers once again started to be more careful in their choices. The breakthrough of modern franchising in Europe occurred in the 70s. » Read more

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Who invented today’s ‘Business Format Franchising’?

The USA is considered to be the mother country of "business format franchising", from where the worldwide triumphal march of modern franchising began. » Read more

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When did the first franchise systems come into being?

The first franchise systems began during the first stages of industrialization. The sewing-machine company, Singer, vested travelling salesmen with the right to sell their products on their own account and in their own name. » Read more

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Where did the concept of franchising come from?

The term "franchise" was first used in France in the Middle Ages and referred to the exemption of customs duties and taxes as well as feudal lords partially relinquishing the vassal services of their subjects. » Read more

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How do exclusive franchise territories work?

Exclusive territories require a commitment from both parties. » Read more

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What is know-how?

Know-how is a body of knowledge acquired and tested by the franchisor, resulting from his experience; it constitutes the operational basis of a business. » Read more

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What conditions must one fulfil to establish a franchise in a given area?

Conditions will be indicated on a case by case basis by the franchise company » Read more

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