Franchising refers to a form of distribution. Licensed retailers sell products from a large company. The franchisee is legally an independent entrepreneur. In exchange for franchise fees, they receive the rights to the franchisor's content. The franchisor provides their overall business concept. Both parties sign a franchise agreement. This sets out all rules and obligations. Training for franchisees helps to implement guidelines in the best possible way. A wide range of franchise offers is available in the gastronomy sector.
What are the advantages for franchisees?
The franchisee adopts a successful overall concept from a company. The already established business idea minimizes the franchisee's risk. They benefit from the content of the corporate identity. This is also relevant for advertising campaigns due to the uniform presentation.
A marketing concept is in place. The franchisee uses this for their business. The franchisor's level of awareness ensures automatic visibility when a new franchise business opens.
Since every franchisee receives their own territory, there is no rivalry within the same company. Franchisees often receive better conditions for purchasing goods than independent entrepreneurs.
The franchisee receives the right to use the franchisor's brand. They benefit from the franchisor's expertise and market experience. Training, induction periods, and seminars help ensure the best possible start to entrepreneurial life.
What should franchisees in the gastronomy sector keep in mind?
- Have you completed relevant training or do you have the necessary prior knowledge?
- Have the franchise agreement checked by a lawyer to avoid unpleasant surprises.
- In the gastronomy sector, you and your employees require a health certificate. If you are opening a restaurant, a restaurant license is required.
- Do you receive thorough training and further assistance from the franchisor?
- Check the effectiveness of the advertising measures in advance. Do they have a sales-promoting effect?
- Is there proof of the registration of the trademark and other property rights?
- Read the operations manual carefully. Ask questions as early as possible.
- Take out the necessary insurance policies. These include, for example, public liability, loss of earnings, and health insurance.
- Does the franchisor offer the opportunity to exchange ideas with other franchisees?
Gastronomy: Franchise offers for entrepreneurs
The well-known franchisors in the gastronomy sector are the large fast-food chains like Subway and McDonald's. In the meantime, there are many other opportunities to become active as a franchisee in the gastronomy sector.
- Der Brötchenbursche: Customers have baked goods delivered to their homes in the morning by the 'Brötchenbursche' (bread roll boy). The required equity capital is 2,000 euros. License fees of 15 percent of net sales are added.
- BROT&BRÖTCHEN: BROT&BRÖTCHEN implements the concept of a self-service bakery combined with a café. Franchisees need equity capital of 30,000 euros. In addition, there is an entry fee of 6,000 euros. The franchise fees are 4.5 percent.
- Happy Waffel: At Happy Waffel, customers receive waffles in a wide variety of versions, for example with fruit or sprinkles. Shakes and coffee are also part of the offer. The required equity capital is 20,000 euros plus an entry fee of 12,500 euros. Five percent of net sales are charged monthly as franchise fees.
- Sushi Palace Delivery: The sushi delivery service focuses on high-quality products, customer satisfaction, and the best service. In addition to conventional sushi varieties, Sushi Palace also offers sweet and fried sushi. Interested parties can get started with equity capital of 35,000 euros. The entry fee is 12,000 euros. Franchise fees of 3.8 percent of sales apply.
- DAILY: The DAILY concept focuses on healthy nutrition. The target group is business people to whom DAILY delivers their food to the office. Franchisees need 120,000 in equity capital. The franchise fees are six percent.
- Enchilada: The offer of this German experience gastronomy ranges from German to South American cuisine. Equity capital of 30,000 euros is required for the franchise company. In addition, there is an entry fee of 10,000 euros. Advertising fees are one percent of sales, and franchise fees are six percent.
- Bionista: The company specializes in sustainable food and drinks. Meat and vegetables are of organic quality and come predominantly from the respective region. Potential franchisees bring equity capital of 50,000 euros and pay an entry fee of 18,000 euros. The franchise fees are five percent of sales, and advertising fees are two percent.
- HendlHouse: In this franchise restaurant with Bavarian cuisine, the customer receives all kinds of poultry as well as various side dishes such as hash browns and vegetables. The amount of equity capital is 30,000 euros. The same amount is added as an entry fee. In addition to five percent franchise fees, one percent advertising fees apply.
Financing the franchise company is possible through the bank. The distribution of an established brand has a positive effect on the granting of credit. This minimizes the default risk. Furthermore, there are funding programs with financial support for franchise founders. They are available from the development bank Kreditanstalt fĂĽr Wiederaufbau (KfW), the Federal Ministry for Economic Affairs and Climate Action, or the Chamber of Industry and Commerce.
