How successful is a Delhivery franchise
Franchise companies: concepts, examples, providers at a glance
1. How franchise businesses differ
McDonald's, KFC and Subway? Franchising is more diverse than you might think and is not just about fast food frachises. With around 1,000 existing systems, all you have to do is find the right franchise.
Classically, when it comes to franchises, the names of large restaurant chains such as Subway, McDonald's or KFC are often mentioned. But the possibilities for establishing a franchise go far beyond the catering trade. There is also franchising in other industries, from pharmaceuticals to services or handicrafts to tourism, fashion or marketing - there is a suitable franchise system in almost every area. You will know many of them, although you may never have exposed the system as a franchise. To name a few examples: Obi-Baumarkt, Blume2000, Tchibo, TeeGschwendner, The Body Shop, clever fit, Runners Point or Schülerhilfe - would you have known all of them that there was a franchise behind them?
The principle of franchising has now also arrived in industries in which you might not expect it. For example, there is a driving school, a wedding agency or care for the elderly as a franchise system. Even Sanifair - the pay toilets that you may have already seen at motorway service stations - are organized as a franchise system. And more and more franchises can also be found in the area of social entrepreneurship. A prime example of a franchise in the social sector is wellcome, a non-profit organization that supports young families nationwide in looking after their children in the first year after birth.
In 2019, according to a study by the German Franchise Association, 43% of franchise companies were active in the services sector, 29% in retail. In 2019, 20% of the franchise companies were active in the catering, tourism and leisure sectors. Crafts, construction and renovation bring up the rear with 8%.
You have to pay fees every time a franchise is set up. When choosing a franchise system, you should therefore make sure that you keep an eye on all cost points. There is an entry fee, investments (e.g. for setting up the site) and ongoing fees. When looking at franchise companies, you should estimate the total costs and check these against your existing capital.
The qualifications required for the franchisee differ depending on the franchise. While starting a franchise company is generally ideal for career changers with professional experience or the necessary passion, there are some systems that require their franchisees to train or even obtain a master's certificate.
Franchisees usually receive active support from their partner. Nevertheless, the level of support differs greatly depending on the franchise company. Some systems have their own training centers, others only offer smaller workshops to prepare franchisees for future management positions.
There are also serious differences in the financial aid provided by the franchisor. Some systems support their franchise partners in planning and applying for funding; still other franchise companies do not offer any support in this area.
Systems from both ends of the equity spectrum
|Franchise companies with little / noEquity|
|Coffee bike||0 €|
|Waffle bike||0 €|
|Flammkuchen Central||0 €|
|Chopp & Roll||0 €|
|Garden magic||500 €|
|Merk automat||500 €|
|Franchise company with equity of over € 100,000|
|Smoothie Factory||212.000 €|
|Kentucky Fried Chicken||250.000 - 750.000 €|
|BoConcept||300.000 - 500.000 €|
|MC Donalds||500.000 €|
|Dickey's barbecue pit||880.000 €|
2. Compare franchise providers and concepts
When looking for the right franchise company, you will come across many suitable systems. It is then all the more important to take a closer look at these possible candidates. To do this, fill out a table with the most relevant and your desired factors (e.g. location in your area) and enter the values for each possible franchise company, as the following example shows:
|Criterion / franchise||Subway||Mouth-fine||MC Donalds||burgerme||North Sea|
|Member of the franchise association|
|Entry fee||10.000 €||15.000 €||46.000 €||27.500 €||30.000 €|
|Equity||at least € 15,000||40.000 - 50.000 €||individually, but at least 25% of the total investment||25.000 €||at least € 100,000|
|Ongoing fees||12,5 %||5 %||10 %||7 %||7 %|
|Location near you|
|Passion for the provider|
3. The best franchisees
Would you like to set up a franchise company - possibly as a career changer - and get started right away? Then you should take a close look at the following ten franchise concepts. Each of these ten franchises is growing extremely dynamically and is looking for new franchisees - so the chances of success for founders are very good.
The top 10 franchises
Systems awarded by the franchise association
The German Franchise Award from the Franchise Association honors the best franchise systems among its members every year. In 2019, the following nine franchise companies won:
|Green Franchise Award||Coffee Fellows GmbH|
|FiltaFry Germany GmbH|
|Janny’s Ice Cream Franchise GmbH|
|Franchise Founder of the Year||Daniel Hofmann // Home Instead Senior Care|
|Julia Zimmermann // Town & Country House|
|Matilda Rohr // Wax in the City GmbH|
|Franchisor of the Year||Apollo-Optik Holding GmbH & Co. KG|
|Duden Institute Learning Therapy GmbH|
4. Examples of successful commercial franchises
If you want to set up a franchise company in the retail industry, there are some exciting franchise concepts to choose from. According to a study by Franchising & Cooperation 2016, 85.6% of entrepreneurs working with a commercial franchise would choose their franchise company again, 81.1% would recommend it to others. With a retail franchise, founders can realize their dream of having their own shop. Would you like to become a retail franchisee right away? In our franchise exchange we present some selected franchise offers to you in more detail.
More examples of successful franchise businesses in retail
DOGSTYLER is an excellent example of a new and emerging franchise system. Founded in 2012 and already represented at 18 locations, DOGSTYLER sells premium products for man's best friend in a stylish ambience. Advantages for franchisees include training at the DOGSTYLER Academy, professional support with location analysis, selection and potential analysis, as well as the handover of a turnkey DOGSTYLER store.
On the market for 25 years, REDDY Küchen offers a franchise company that still takes the franchisee by the hand: Regular training, meetings with other franchise partners and a grant of up to 175,000 euros support franchisees from the start. The REDDY kitchen franchise is already represented in more than 80 locations across Germany.
The tea specialist TeeGschwendner stands out due to its pronounced sustainability concept, because here special attention is paid to the environmentally friendly and controlled cultivation of the tea in the countries of origin. Founders need 12,000 to 24,000 euros in equity and an entry fee of 15,000 euros. There are no ongoing license fees. The services of the TeeGschwendner franchise company are extensive; Starting with a start-up program (location selection, shop fitting, IHK-certified seminars, etc.) through ongoing support and communication with the franchise partner, franchisees also receive support with marketing as well as training courses, seminars and workshops.
With more than 100 locations and an exciting concept, BabyOne has been offering franchising for almost 30 years. All the things you need for the next generation can be found in quiet locations with spacious areas. The family-run franchise company supports franchisees with special omnichannel marketing: items ordered online are sent from the branches, collaborations with bloggers and influencers are part of day-to-day business and advisory videos help undecided customers. In addition, the BabyOne Franchise offers help with business plans and financing, IT support, purchasing goods and processing payments, as well as training and networking. Franchisees bring equity capital of 75,000 euros and an entry fee of 10,000 euros.
An Edeka franchise is in great demand in Germany. However, the supermarket chain does not offer this. Nevertheless, founders have good prospects at Edeka! As a cooperative, Edeka is an association of natural and legal persons who pursue a common goal. Future entrepreneurs still have very good prospects here, because it is possible as an Edeka businessman to open your own branch and become part of the group of companies. As a comrade of Edeka, the Edeka merchants are usually co-owners of the cooperative, have equal rights and have a say. Members of a cooperative run their companies independently.
5. Popular franchise systems: Gastro
A start in system catering can be varied - from the bakery to the burger chain. With initial experience in the industry, founders can set up their own restaurant, café or bistro. In our franchise exchange we present the best catering franchise concepts. According to the F&C franchise study from 2016, 84.2% of the franchisees active in the catering trade would choose their franchise company again, 75.5% would recommend it - all in all, catering franchises are very satisfactory.
Examples of franchise providers in the hospitality industry
The fast food giant McDonald’s is probably the best-known franchisor of system catering. Almost 90 percent of the approximately 1,500 German branches are run by franchisees - with each entrepreneur running an average of five restaurants. To start with a McDonald’s restaurant, franchisees need a comparatively large amount of capital compared to other franchise systems: around 800,000 euros - of which 500,000 euros are unbound and freely available - future restaurant managers have to raise a new McDonald’s branch. Taking over an existing restaurant can be even more expensive; Here franchisees pay according to market value - depending on the location, that can be up to two million euros.
Mundfein is an example of a successful franchise start. Founded in 2008, the franchise company already has 42 locations and 36 franchise partners. The pizza delivery service is a member of the franchise association and is already planning numerous new branches. Franchisees bring an entry fee of 15,000 euros - there are no additional costs to start with. For this, 4.5% of the net sales are charged monthly for franchise fees for licenses etc. and 0.5% of the net sales for advertising fees.
In addition to McDonald’s, Subway occupies first place among franchisors in system catering. The sandwich giant operates around 44,000 branches worldwide; in Germany there are around 700 locations that are operated by around 350 franchisees. To start with a Subway franchise, franchisees have to pay a license fee of 10,000 euros (5,000 euros follow-up license for each additional restaurant) and expect a total investment of 150,000 euros upwards. Of this, 15,000 euros must be available as immediately available, non-tied equity. If the restaurant has yet to be built, the franchisee has to take care of it - Subway only recommends building contractors who have already worked for the company.
The coffee shop, which was expanded as a franchise in 1999, has more than 230 branches throughout Germany. Franchisees should have several years of experience in gastronomy or services, business administration know-how and a passion for coffee. The franchise company offers on-site support via area managers, training courses for all hierarchical levels and centralized marketing. For an individual deductible, the franchisee pays an entry fee of 15,000 euros, a 5% franchise fee and a marketing fee of 2%.
With more than 100 branches in Germany, Austria and worldwide, Nordsee offers an exciting franchise concept. The franchise provider Nordsee offers three different restaurant and snack models. Franchisees bring at least EUR 150,000 equity and an entry fee of EUR 30,000. The monthly license fee for the franchise is 5%.
6. Franchise providers in the service sector
Franchise offers in the service sector are incredibly diverse. From tutoring companies to management courses, fitness studios or IT service providers, service franchises are incredibly versatile. According to a study from 2016, 83.5% of franchise service providers would choose their system again, while 81% would recommend it to others. We introduce some of the best franchises on our exchange.
Examples of franchise partners in the service sector
The EMS System Körperformen was founded in 2011 and has already developed into a strong franchise partner. Franchisees bring 36,000 euros for investments. The monthly license fee is 749 euros, there is no entry fee. Body shapes as a franchisor supports its partners with support, training and further education. You should have an enthusiasm for fitness, leadership and entrepreneurship.
Amazon as a franchise? That works, as an Amazon Delivery Service Partner (DSP). The core idea of this franchise company is that franchisees set up and operate their own parcel delivery company. This is possible from as little as 25,000 euros in start-up capital and a total investment of around 15,000 euros. There is no entry fee. As an Amazon Delivery Service Partner, franchisees build their own fleet of 20 to 40 delivery vehicles in less than six months.
The study group is one of the leading private education providers in German-speaking countries and can be found at around 1,000 locations. Franchisees run their training institute independently and build up the customer base themselves. The franchise partner adopts a concept that has been tried and tested over the long term, which significantly reduces the entrepreneurial risk. The study group is now the fourth largest franchisor in Germany. With the low equity from 5,000 euros and an entry fee of 14,500 euros, franchisees can join a system with more than 1,000 locations throughout Germany.
Home Instead is the first German franchisor for care for the elderly. Founded in 2008, Home Instead now has more than 130 locations and is expanding rapidly. With equity of 50,000 euros and an initial investment of 50,000 euros, franchisees can occupy catchment areas of around 125,000 inhabitants. Training courses ("Train the Trainer"), webinars and extensive networking elements round off the franchise system.
REGUS is the world's largest provider of coworking spaces and other workplace solutions. Founded in 1993, REGUS can now be found at over 3,300 locations in more than 1,000 cities around the world. Franchisees can start with this exciting system with equity capital of EUR 70,000 or more and an ongoing fee of 14%.
7. Find a Franchise: Franchise exchanges and other options
Finding the right franchise can be a bit of a challenge. To search for suitable systems, founders have the opportunity to make contacts directly at franchise trade fairs or to click through various franchise exchanges online.
The search with a franchise portal
The market for portals is large and there are numerous franchise exchanges and portals that do not make the search easy. We have therefore listed the most important franchise portals with the best and clearest selection of different providers for you:
|Für-Gründer.de franchise exchange||We operate our own franchise exchange in which selected systems are presented. Instead of using a multitude of systems, we focus on quality when selecting franchisors. All of the systems presented there are particularly suitable for those setting up a business.|
|Franchiseportal.de||This franchise exchange is probably one of the oldest franchise platforms on the Internet. It has been helping franchisees in their search for the right system since 1997.|
|FranchiseDirekt.com||This portal offers its users a choice of around 200 different franchisors. This also includes systems from Europe and around the world, so that those interested in franchising who want to become franchisees abroad will also find what they are looking for.|
|Franchise-Net.de||Like the other providers, this franchise portal offers a variety of different systems and makes a clear and tidy impression.Incidentally, the sister portal franchise.de belongs to the same provider.|
|Franchise top 10||If you lose track of the hundreds of different franchise systems, you should take a look at this franchise portal. Ten selected systems from different industries that must meet the quality requirements are presented there. The choice should be much easier here.|
|PunktFranchise.de||On this clearly arranged franchise exchange you can browse more than 200 systems in over 3,400 locations. The Börsr can be filtered by category, required equity and city.|
Do the right research on a franchise portal
Almost every German-speaking franchise portal has a similar structure. Selected franchise companies are often highlighted on the home page. If you are not tempted to click here, the best way on a franchise portal is to use the category selection or search function. In addition, you can filter according to important properties, for example:
- Entrance fees and license fees
If the exchange now shows you a list of basically suitable providers, you can now go to the detailed search. On the individual profile pages of the systems, a franchise portal usually provides a basic description of the business idea and provides information about the fee structure and the necessary equity.
The next step then looks like this: The franchise companies that were shortlisted should now be contacted. For this purpose, the franchise portal provides a contact form which can be used to request further information. As a rule, you will then be contacted by phone or email. You will receive further information and in the next step you must also provide the franchisor with information about yourself.
Alternatives to franchise portals
If you don't want to take too great a risk and instead rely on a franchise system that is established on the market, then you should not only rely on the franchise presentations of profit-oriented franchise portals, but also get information on the DFV website. TheGerman Franchise Association (DFV)is the largest association for franchisors and only accepts members under certain conditions. Full members must complete the DFV system check, which requires, for example, at least two years of franchisor activity and at least two contractually bound franchisees. All members of the DFV are listed here in a similar way to a franchise portal.
Whether you are trying to find the right franchise system via a franchise portal or via the website of the franchise associations - these ultimately only serve as an overview and a certain pre-selection. Because there is no avoiding a concrete analysis of the selected systems if you want to make a good decision with the variety of different providers.
Start-up fairs instead of online franchise exchanges
At start-up fairs like that Franchise Expo and other events, you can first get to know franchise systems in direct contact without any obligation. In addition, there are often specialized consultants who can help you choose the system that is right for you.
8. Conclusion: Find the perfect franchise
With all the different franchise offers, it can be difficult to find the right one. Those interested in franchising should therefore be clear from the outset in which direction they should go and what a franchisee brings with them. If you want to set up a franchise company, the second step after taking stock is the specific search for suitable franchise companies. You can find examples of the best franchise systems in our franchise exchange, where we introduce you to the top franchise companies.
Start now - you will find the right one among the many franchise concepts!
To the franchise exchange
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