Why we only qualify 10% of all franchise systems

Franchise systems are always looking for new partners and therefore typically invest in high online visibility. You will find a wide selection of systems and information across a variety of online portals, with the same ones often appearing prominently time and again.

These platforms all have one thing in common: they allow you to filter their extensive range of opportunities by criteria such as industry or equity capital.

Although these basic criteria can be helpful in an initial selection process, we know from experience that there is more to consider when it comes to founding a business – and to your future.

You want the assurance that the concept you are potentially investing in will not betray your trust, and that you are taking the most effective path to success.

Therefore, the Institute of Entrepreneurship offers a unique approach.

Our criteria:

• The system concepts must be designed for executives.

Approximately 80% of new franchise founders switch industries. Since industry-specific and product knowledge is provided by the franchise system, we primarily look for career changers with relevant leadership experience. Our prospective partners can fulfil their potential as leaders within our systems — both in their day-to-day activities and in terms of financial opportunity.

• The system must already be successfully established in the market.

Systems must be able to demonstrate that they have successfully established themselves in the DACH region. It is not sufficient for us if a system is successful in another country – there must already be verifiable results in the domestic markets.

• There must already be successful franchisees operating in the DACH region.

Here we refer to a demonstrable growth curve in franchise partners. The concept must have proven itself to be reproducible. It is not sufficient, for example, that a system has been on the market for many years but still has only a small number of partners.

Based on a detailed career profile that we create with you at the start of our collaboration, we guide you step by step. We discuss opportunities and risks, compare available offers, and connect you with your preferred franchise system.

We support the detailed review of business-critical data, organisational structure and contractual relationships, and connect you with auditors and legal counsel for the assessment and structuring of tax and legal matters.

We guide you from the very first step through to the final contract drafting.