Case Study 1. Growth through allocation of master contract
A British company in the promotional merchandise sector wants to grow its business and decides to expand through the allocation of master franchise rights in Germany. Supported by our German partners initial market research is conducted in order to identify key players in the market and to identify any weaknesses in the system. Some necessary amendments to the system are made prior to initiating a search for potential master franchisees. After 12 months of active searching a strong potential candidate is identified. After a round of initial negotiations a preliminary contract is signed.
Case Study 2. Expansion through setting up of a pilot business
A German company with a proprietary store concept has enjoyed continuous growth in its domestic market. In order to internationalise the business and thereby exploit its growth potential a research project exploring the potential of the British market is commissioned. As the store concept has not been tested in the UK before the research results are not conclusive so the company decides to move forward with a pilot store. On completion of adaptation of the store concept to suit British tastes the first store is opened. Due to overwhelming success the company is able to establish the concept within a short time and commences recruitment of first franchisees.
Case study 3. Internationalisation by Joint Venture
Whilst searching for a suitable business modell a German businessman comes
across a British-American franchise system. In order to sound out interest
in a master license agreement the company is contacted on behalf of the
German businessman. In a first round of meetings the ideas and mindset of
both parties are discussed. A market analysis is commissioned and identifies
particular aspects in the target market that will have an impact on the
system. The necessary changes and amendments to the system are identified
and the parameters under which the system is to operate negotiated. Subsequently,
a Joint Venture in which the Know-how of the franchise system and the local
management expertise of the German partner are bundled, is established.
The new business commences operations and formulates the going-to market
strategy, taking the business model into a new market.
European Franchise Consulting Group
Pionierstr. 11 / 40215 Düsseldorf / Germany
Tel: +49 (0) 211 6028980 / Fax: +49 (0)211 6028982
kontakt@franchise-europe.net
