Buy, Register, and Launch a Franchise in Germany
Benefit from guaranteed profits, high chances of success with minimal risk, and the support of the parent brand.
What is a Franchise?
Franchise is a method of business development based on granting a company the right to access the business knowledge, systems, strategies, and exclusive trademarks of the franchisor. This allows the franchisee to sell products or services under the franchisor’s brand name. In franchise business, the franchisee typically pays an initial setup fee and annual licensing costs in exchange for the right to operate under the franchisor’s name.
Through franchising, several different business networks operate under the same brand name, similar management practices, and common marketing strategies.
Franchisee
The party who purchases the rights to operate and offer the products and services of the franchisor under a specific model and trademark.
Franchisor
The party that grants the franchise rights.
Franchise law requires franchisors to provide key operational information to franchisees.
Franchise royalties paid to franchisors vary based on industry and may be a percentage of sales or a fixed annual amount.
Advantages of Buying a Franchise in Germany
Guaranteed profits and low risk
Ready and approved business plans
Fast growth potential due to the country's strong infrastructure
Comprehensive training and direct support from the parent franchise
Benefit from Germany's dynamic and stable economy
Professional advertising and marketing
Steps to Launch a Franchise in Germany
1. Register a Limited Liability Company (GmbH)
2. Acquire Required Licenses
3. Register with the Tax Office
4. Register for Insurance
5. Obtain Gewerbeamt License
06. Sign Franchise Agreement with the Parent Company
Selecting a Franchise
There are over 1000 franchise systems in Germany across various industries. To select the right franchise based on your needs and circumstances, consider the following:
Market Analysis
Study the market in Germany in the field you’re considering and gather information about the potential of your profession.
Expertise and Skills
Don’t underestimate your own experience, expertise, and skills. Ideally, choose a franchise that aligns with your background.
System and Costs
Thoroughly examine the operational systems of the franchise and gather enough information about your business costs.
Level of Support from the Parent Company
Before starting, ensure you understand what support the parent franchise company will provide, and in which areas they will cooperate.
Financing and Investment for Franchising in Germany
Initial Capital
Assess the initial capital required to establish a limited liability company in Germany and set an upper limit.
Bank Loans
The business model and tested business plan of the parent company, having already been successful in other cities and regions, hold credibility with banks.
Government Subsidies
The German government offers various subsidies at city, state, and even EU levels to support entrepreneurs.
Investors
You can find investors who are willing to invest in your business plan if you present a solid plan.
Franchise FAQ
What is the initial capital required to launch a franchise?
Franchises in Germany are valued starting at €10,000 and up.
Can I obtain German residency through franchising?
Yes, by purchasing a franchise, similar to registering a company in Germany, you become a legal entity, and this process can help you obtain residency.
Is franchising the same as a dealership?
No, in a franchise agreement, using the parent company’s brand name and logo is mandatory, and the parent company retains oversight rights. In contrast, dealerships do not require such conditions.
What stages of franchise setup do you assist with?
We support you from the very beginning of selecting a franchise to even three years after launching the business.
Is launching a franchise really profitable?
Yes, due to the tested business plan and the credibility of the parent company, franchising offers minimal risk and guaranteed profits.
