What is franchising? Franchising is a partnership-based distribution system. In this distribution system, new entrepreneurs are allowed to use an established business concept for a fee. It is therefore a system of cooperation between an existing company – the franchisor – and a company founder – the franchisee. The franchisor grants cooperation partners the right to use the business concept developed on the basis of a franchise agreement. The franchisor determines the period for which the franchise system will be in operated between the partners. The franchisee is entitled to use the name, design and business idea to sell services or goods during this period. In this way, the franchisee takes over a business model that is already working. To purchase licenses and usage rights, the franchisee must pay fees that are called entry or franchise fees to the franchisor. In most cases, the franchisee also pays a profit share to the creator of the business idea.
A well-known example of franchising is McDonald’s fast-food chain.
Obligations of franchisees:
– Implementing regional advertising and sales promotion measures
– Paying franchise fees
– Informing the franchisor about developments in the company
– Promoting brand identity
Advantages for the franchisee at a glance
– Faster market access
– Lower risk
– Easier entrance to the market
– Help with location selection
– Proven range of brands or services
– Current information and regular training
On our website you will also find information about our franchise offer and if you are interested, we are always ready for a consultation.
