If you don't want to start a business conventionally, you could also become self-employed as a franchise partner. (Photo: © lev dolgachov/123RF.com)
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June 15, 2021
As a franchise partner, you can also become self-employed, just like after acquiring the master craftsman or journeyman qualification.
Besides taking over an existing business or starting a new one after obtaining a master craftsman or journeyman qualification, becoming a franchisee is another way to become self-employed. This is a partnership-based distribution system in which new entrepreneurs can use an established business concept for a fee.
The basis of such a franchise partnership is a contract between the franchisor and the franchisee . In this contract, the franchisor grants the franchisee the right to use their developed business concept . The franchisor also specifies the period during which the system will operate between the partners. For this agreed period, the franchisee may use the name, design, and business idea to offer goods or services. It is important to note that the franchisor must have already successfully tested and further developed the concept . In return, the franchisee must pay fees to purchase the licenses and usage rights . It is important to know that legally, the franchisee remains independent, meaning they are only bound by the contractual agreements in all their business decisions.
Becoming a franchisee can certainly offer opportunities : Current franchise statistics show positive development in the franchise industry even in the crisis year of 2020. According to these figures, the approximately 930 franchise systems nationwide had 138.748 franchise partners last year, 4 percent more than the previous year . A total of around 749.198 employees work in the 176.240 (+2,6 percent) franchise businesses, representing an increase of 4,5 percent. These figures indicate growth and further development, even in the COVID-19-dominated year of 2020. This is reinforced by the development of total revenue: Compared to the previous year, it rose again by 4,6 percent to 135 billion euros. There are currently around 1.000 franchise systems operating in Germany. Of these franchise companies, 38 percent are in the service sector, 30 percent in gastronomy, tourism and leisure, 21 percent in trade and 11 percent in crafts, construction and renovation.
Anyone considering starting a franchise should carefully weigh the pros and cons . Among the advantages is the ability to rely on proven concepts and the fixed framework provided by the franchisor . This manifests itself in the definition of the products and services offered, the provision of comprehensive marketing and communication measures, and the benefit of operating one's own business under a well-known brand. On the other hand, there are precise requirements and costs that the franchisee incurs. In addition to an initial franchise fee and the required investment, there are ongoing costs payable to the franchisor. The German Franchise Association offers a search tool on its website where users can enter their individual investment amount or industry and receive initial suggestions tailored to their needs.
Operations management
Operations management
The Chambers of Skilled Crafts in Germany - HWK of Saarland
There are also numerous franchise models available in the skilled trades for aspiring entrepreneurs. Whether as an optician, auto repair shop, baker, renovation specialist, or stair builder: the possibilities are diverse. Brands like Apollo , Kamps , Automeister , and Portas enjoy high brand recognition and inspire customer trust. Depending on the industry, the initial franchise fee varies from €1.500 to over €40.000, and in some cases, the investment amount can be individually negotiated. For example, when opening an Apollo optician's shop, the fee can range from €180.00 to €230.00, depending on the size of the business . Ongoing costs also vary: from one to ten percent are possible , and in some cases, fixed monthly fees are common.
Anyone who chooses a franchise concept simultaneously commits to upholding and supporting the quality standards of the established brand. To ensure compliance with these quality standards, there are precise guidelines and accompanying training programs.
Background Click here to visit the franchise association’s website.
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