General questions about franchising
In this section, experts answer general questions most commonly asked which go beyond the specific subject areas listed above.
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. In the course of the division of tasks franchisors are responsible for all functions which can be carried out more effectively and more cheaply from head office. In contrast to this franchisees take over those tasks which he can fulfil more effectively from his position on the market.
Franchisors are responsible for the identity, image and functional ability of franchise systems. In this connection they take over the task of looking for and selecting franchisees, ensure that the head office fulfils its responsibilities towards franchisees and guarantee – by applying the principles and instruments of cooperative management – that the regulations, which are necessary for maintaining the functional ability of the system, are kept to.
Franchisees put capital, work, contacts and information into the business. Generally they concentrate on financing all necessary investments, running the franchise business and undertaking all necessary measures to achieve acceptable sales. As well as this they attempt to build up long-term relationships with their customers and pass on any relevant information to the head office which helps to ensure that the functional ability of the system is maintained.