Franchising Market in Germany
Interview with Jörg T. Eckhold, Managing Director of Eckhold Consultants GmbH, 
Germany
How did you get started as a franchise consultant?
In the year 1992 we started with a project for one of the world’s leading food systems. Since then we are on the spot of national an international franchise systems. One of our senior partners is a jury member for the evaluation of a German franchise ranking.
Who are your clients?
You will find a variety of our clients under http://www.eckhold-consultants.de/ek-web/e-version/e_frames/e_fset_ts-f.html . We work for national as well as international franchise systems.
Snap-on Tools Incorporated - Worldwide, leading developer, producer and distributor of tools and garage-solutions for the professional user
Smallprint - Fingerprint silver jewellery keepsakes, capturing children's fingerprints, hand and footprints, writing and drawing
Improved Reading - Training to improve reading efficiency and speed
HD Iskender - Turkish fast-food chain
Learn2Learn - Coaching to improve learning skills of pupils
What are the current trends on the franchising market in your country?
Franchising in Germany is still growing. Therefore the market is open for new systems. Combination of handcraft and trade or provision of services and trade are trendy. In the food section we have a disposing market but still open for new ideas.
How many companies in your country offer franchises?
Around 900 plus approx. 300 licensors
What's the average startup investment in money and time for a franchise?
Most systems have a start-up investment of below 50,000 Euros. On the other hand an expected income of a franchisee before tax in the first year should not be below 28,000 Euros.
Which branches experience a lack of franchises?
The market of senior care/services.
What is the profile of the people who choose to buy a franchise?
Former employee with an average age of 30 – 48 years.
What should a franchisor know before coming to your country? Any specific requirements, legal restrictions, etc.?
In Germany we have no franchise law but thousands of spoken law cases. The same applies to rules and regulations from tax, trade office, etc. This list would be very long – the best practice is a feasibility study which will point out all the handicaps and give solutions for the market entry.
