What is franchising? by ÖFV – Österreichischer Franchise-Verband

An introduction to the world of franchise business.

Franchising is a sales and organizational concept that enables a successful business idea to be made available to several (franchise) partners, thereby multiplying the type of business. The franchisor developed and tested the business concept.

The franchisees (also called franchise partners) implement this franchise concept as independent entrepreneurs in their location (independently) and use the experience of the franchisor and the advantages of his system. In addition, the franchisee receives ongoing advice and support from the franchisor. The franchisor is also obliged to continuously develop and protect the system. In return, the franchisee pays an entry fee - depending on the brand awareness, the industry and the level of development of the franchise system, as well as an ongoing franchise fee - mostly depending on sales.

The franchisee undertakes to implement the concept in accordance with the system and recognizes responsibility for the entire system and thus for the other franchisees. The “heart” of the system is the so-called know-how documentation. This contains the collective knowledge of the system - that is, all practical knowledge that is based on the franchisor's experience and tests and that is secret, essential and identified.

The basis of franchising is the partnership of independent entrepreneurs who pursue a common goal - namely to implement a successful concept for everyone.

Franchising is therefore a partnership for mutual and long-term economic success.

Source: https://www.franchise.at/ueber-uns/

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