German Franchise Industry 2024: Developments, Challenges and Perspectives

In 2024, the franchise sector generated total revenues of €149.2 billion—a 1.1% increase over the previous year. While Germany’s GDP declined by 0.2% in the same period, the franchise sector proved itself to be a stabilizing anchor for the economy.  

Employment levels also remained high: around 830,000 people worked in German franchise systems in 2024. Each new franchisee creates an average of 5.6 additional jobs, underscoring the sector’s role as a job creator. The number of franchise outlets rose to 193,920 (+2%), and the partner base grew to 148,577 franchise entrepreneurs (+0.9%). These figures highlight the sustainable expansion capacity of the business model.

High Survival Rate and System Advantages  

Franchisees are significantly more successful than traditional founders: the five-year survival rate stands at 66.5% (compared to 38.1% in the overall economy). The reasons are clear: proven business models, central support, and a strong partner network ensure entrepreneurial stability.

Industry Diversity as a Resilience Factor  

The franchise sector is broadly diversified:  

• Services: 27%  
• Retail: 20%  
• Gastronomy: 20%  
• Skilled Trades, Construction & Real Estate: 17%  
• Health & Care: 9%  
• Leisure & Fitness: 7%  

This diversity makes the model resilient to sector-specific crises and enables broad market penetration.

The Franchise Climate Index (FKI) rose to 136 points at the end of 2024—a clear sign of ongoing positive sentiment. 70% of systems rate their current situation as good or very good, only 5% as poor. For 2025, systems plan to open an average of nine new locations per system (+50%) and expect a significant increase in franchise partners (+33%).

Economic Policy Framework  

Despite ongoing growth and positive sentiment within the franchise sector, the view of the economic policy environment remains critical. A key finding of the current study: 80% of franchise systems perceive bureaucratic burdens as their greatest challenge. The multitude of legal requirements, documentation obligations, and lengthy approval processes not only tie up resources but also hamper innovation and flexibility. Rising energy costs—especially in energy-intensive sectors—further increase operating expenses and impair competitiveness. Only 11% of surveyed systems rate the political framework as good. The industry, therefore, calls on policymakers for decisive action to promote entrepreneurship: less bureaucracy, faster decision-making, reliable regulatory conditions, and greater recognition of the franchise model as a driver of innovation and employment.

Financing and Skilled Labor  

Financing remained one of the greatest obstacles to growth and new business formation in the franchise sector in 2024. For many prospective franchisees, raising capital is the biggest hurdle on the path to self-employment. According to recent surveys, 15–20% of all start-up projects fail due to financing.  

Especially in economically uncertain times and amid more restrictive lending by banks, professional support in business planning and selecting suitable financing partners is crucial. Proven franchise systems offer a clear advantage here: they have established business models, transparent figures, and professional support, which significantly increases the chances of securing financing compared to traditional start-ups.

At the same time, the shortage of skilled labor remains a key challenge for many systems. While franchise systems are often better organized than traditional SMEs—thanks to standardized processes, targeted training programs, and attractive development prospects for employees—they too feel the increasing competition for qualified personnel. Two-thirds of all systems are therefore investing more in employee retention measures, such as individualized career paths, flexible working time models, or in-house training.

The franchise sector remains an anchor of stability and a growth driver in Germany—with above-average resilience and innovative strength. The structural advantages—proven business models, central support, high survival rates—make franchising particularly attractive for founders and entrepreneurs in uncertain times. Key success factors for the future include targeted partner recruitment, consistent digitalization, and proactive management of diversity and succession processes. At the same time, the political appeal remains: less bureaucracy, more entrepreneurial freedom, and an innovation-friendly economic policy are essential prerequisites for continued growth.