Franchising - a key to success in times of financial and economic crises?!

Abstract

Franchise has been highly accepted as a business strategy on a highly international level. In economically difficult times, the question arises in how far a financial or economic crisis impacts both the franchisor and the franchisee. The following article deals with the general financial and economic situation of franchise companies and is supposed to show the particular characteristics of franchising systems. The authors have conducted an empirical research in order to show the impact of the current international financial and economic crisis on franchising systems as well as to expose the advantages and disadvantages of franchising systems.

An Overview of Franchising Law: Why is it Important?

“…The annual growth of employees justifies the image of franchises as a job generator in middle-sized companies that guarantee stability and security even in difficult times. According to a survey by Deutsche Bank Research, sales of German franchise systems are expected to increase 7% per annum to 70 billion Euros, which certainly positively affects employment (Kußmaul, Waschbusch, Knoll, Ruiner, & Staub, 2012).…”