SPOTLIGHT ON GERMANY
From a legal point of view, trading within Germany is quite well regulated but has no specific franchise law as exists in some other European countries. If a UK franchisor follows the European code of ethics and offers good support, they should have no major legal problems in Germany. Anyone entering this market, however, is advised to work with a German franchise specialist consultant to create a new agreement or adapt their existing contract to correspond with German law. Franchising in Germany is regulated by the DFV German Franchise Association; before entering the German market it would be wise to speak with them. Information in English is available – contact
www.franchiseverband. com. Speaking of language, this too is an issue. Even though there is a proliferation of English
language slogans in German advertising/media broadcasts, etc., only around 50 per cent of the population speaks passable English, so German language speakers/translators will be desirable during your setting up process. Certainly when extending the network beyond master licence, all documentation should be in German. This is a challenge but it is necessary and ought to be done in conjunction with a German partner with an inherent understanding of the geography, culture and conditions. All in all, the franchise market in Germany is a healthy one with good economic prospects. One possible drawback, recruitment-wise, is that because skilled managers are in demand at the moment and can easily find a good job in industry, reasons to take the franchisee- entrepreneur route must be compelling,
otherwise why should they take a risk? The appeal for a potential investor is financial profitability, a clear differentiation from the competition, a unique system that is simple to follow but has enough distinctive features that it cannot be easily replicated without the support of the franchisor. In summary, international franchisors are welcome in Germany and, with the support of a good consultant and the right approach, it will be possible to find suitable franchise partners in the region. Good luck! n
Author’s note
rolf Gerhard Kirst is owner of Franchise Pool International. For more information about the German franchise market and how to enter, contact rolf on +49 8669 789 3 987 or
office@franchisepool.org
Franchisor News | 21
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52