Trends on Danish Franchise Market
Interview with Bo Zoffmann, CEO of PS4 Franchise Partner.
How did you get started as a franchise consultant?
I worked for McDonalds Denmark as director. I had the responsibility for finance, franchising and development. When I stopped in year 2000 I started as consultant and I have been consultant since
Who are your clients?
I work primarily with local clients that are developing a franchiseconsept and growing their business with franchising. It is businesses like baresso Caffee, Manolo Gelato. I have found master franchisees for businesses like Cold Stone Creamery, Expence Reduction Analyst for whom I recruited their first franchisees.
What are the current trends on the franchising market in Denmark?
Very boring. Only few companies are starting up with franchising and it is very difficult to find local franchisees and extremely difficult to find master franchisees or developmental franchisees.
How many companies in your country offer franchises?
Between 100 and 150
Which is the best Franchise growth, branch and demand?
The Danish subsidiary of McDonald’s is in their own league and the only international franchisor that does direct franchising.
What's the average startup investment in money and time for a franchise?
I do not have an average figure. They vary.
Which kind of difficulties do the franchisees face?
The most branches and the franchisees we find have difficulties finding capital as the banks are very cautious.
What is the profile of the people who choose to buy a franchise?
People who want to start their own business. Very often it is middle aged well educated people who want to make a carrier change and work as independent business people. It is actually very often good solid candidates.
What should a franchisor know before coming to your country? Any specific requirements, legal restrictions.. etc?
Denmark has no franchise regulation. We are part of EU and is of cause subject to the EU competition regulation.
The franchisors who really want to grow their business in the Nordic region should consider to do direct franchising as a beginning. Denmark is the perfect place to start a Nordic operation as it is relatively easy to expand into Sweden and Norway from Denmark.
