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Franchise

How to get proper Franchise Investments?

In principle, the capital is transferred to the company indefinitely, but the aim of the participation is not to pay interest, but to create value by selling the participation. When the value of the company has risen, the investors use a previously agreed option for the exit. Since the valuation approaches and payment modalities have …

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Franchise

Debt capital sources for franchise system financing

With franchise concepts, the franchisors have very different financial starting conditions. If the franchisor is a large industrial company, the question of expansion financing is unlikely to arise. However, if the franchisor is still a relatively young company, the successful market establishment of the franchise system cannot usually be accomplished without outside capital. As a …

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Franchise

The best Way to Business Format Franchise

The USA is considered the mother country of today’s franchising. This is where the triumph of modern franchising began after the Second World War. Among the inventors of modern business format franchising is McDonald’s, a fast-food chain that used franchising to create a global network of more than 31,000 partners. The modern business format of …

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Franchise

The Historical origin of franchising

The first beginnings of modern franchising date back to medieval France, when the feudal lords made agreements with tax collectors who were allowed to retain a percentage of their revenues. Subsequently, franchising meant the exemption from customs duties and taxes and the partial renunciation by the feudal lords of the vassal services of their subjects. …

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