global franchise newsletter sign up graphic

Stay in the know and receive the latest international franchising news, insight and investment opportunities

close catfish

German franchising remains resilient in the face of COVID-19

German franchising remains resilient in the face of COVID-19

The latest figures released by the German Franchise Association showcase the enduring nature of the country’s thriving franchise industry.

Keep up to date with the latest Global Franchise News sent straight to your inbox. Sign up here.

Back in July 2020, the German Franchise Association published its bi-annual industry analysis report, which assessed the climate of the country’s franchise industry and its reaction to the ongoing COVID-19 pandemic.

At that time, franchise confidence was shaky to say the least. 56 per cent of respondents indicated that they had experienced negative effects overall as a result of the pandemic, with the gastronomy segment of the market hit hardest at 73 per cent.

“The support measures that have been launched quickly are good, no question. However, we urgently need further support for small and medium-sized enterprises – even beyond 2020,” said Torben Leif Brodersen, CEO of the German Franchise Association, at the time of the report’s release. “We have to assume that the effects of the corona epidemic will occupy us for years, not just a few months.”

The Association recently published its updated statistics for the end of 2020, however, and they paint a more positive picture. In December 2020, 930 franchise systems operated nationwide in Germany, with a total of 138,748 franchise partners – a four per cent increase on the previous year. The industry was also valued at €135bn, which marked a 4.6 per cent increase on 2019.

Looking at sectors that dominate the German franchise industry, services still remained a frontrunner with 38 per cent market share, but restaurants and leisure overtook trade, claiming a 30 per cent share for the former and 21 per cent for the latter.

Perhaps most crucially, industry optimism is gradually returning. The 56 per cent of respondents who had experienced negative effects in July fell to 37 per cent in this latest report, with 35 per cent of respondents saying that they had now experienced positive results throughout 2020.

“Despite the surprisingly positive assessment among some respondents, the pandemic has evidently left its mark and will continue to do so,” said Broderson. “However, the fact that the figures reflect a truly stable climate in these systems demonstrates a remarkable resilience, that is, the strength to persevere against negative influences, to find solutions and emerge from the crisis stronger than before.

“We see this attitude among the majority of franchise enterprises – whether franchisors or franchisees. This is evidently not only in personal contact with our members but also reflected by the numbers in the statistics, which confirms the stable immune system in our sector of the economy.”

Finally, when questioned about the ability of the franchise concept to weather crises, 96 per cent of the respondents assessed franchising as a particularly crisis-proof business model. This is nine per cent more than in the past summer.

“Once again, it has been demonstrated that the concept of systems and networks is also successful in economically turbulent times and that we can rely on the principle of mutual solidarity,” said Broderson. “This makes the established concept of franchising a reliable strategy for the future in a post-COVID age.”

you may be interested in

franchise directory

  • TaxAssist Accountants

    Business & Professional Services, Financial Services, <100K, Featured

  • Cafe2U

    Food & Catering, Coffee, Take-away, <100K, Featured

  • 800 Pizza

    Food & Catering, Fastfood, Pizza, Take-away, Featured

view more
Connect with Linkedin Logo
Global White Logo Click Here
Close button

WHAT DO WE USE YOUR INFORMATION FOR?

Any of the information we collect from you may be used in one of the following ways: To personalize your experience (your information helps us to better respond to your individual needs) To improve our website (we continually strive to improve our website offerings based on the information and feedback we receive from you) To improve customer service (your information helps us to more effectively respond to your customer service requests and support needs) To process transactions your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, without your consent, other than for the express purpose of delivering the purchased product or service requested. To administer a contest, promotion, survey or other site feature To send periodic emails The email address you provide for order processing, will only be used to send you information and updates pertaining to your order. Note: If at any time you would like to unsubscribe from receiving future emails, we include detailed unsubscribe instructions at the bottom of each email.

HOW DO WE PROTECT YOUR INFORMATION?

We implement a variety of security measures to maintain the safety of your personal information when you place an order or enter, submit, or access your personal information We offer the use of a secure server. All supplied sensitive/credit information is transmitted via Secure Socket Layer (SSL) technology and then encrypted into our Payment gateway providers database only to be accessible by those authorized with special access rights to such systems, and are required to keep the information confidential. After a transaction, your private information (credit cards, social security numbers, financials, etc.) will not be stored on our servers.

DO WE USE COOKIES?

Yes (Cookies are small files that a site or its service provider transfers to your computers hard drive through your Web browser (if you allow) that enables the sites or service providers systems to recognize your browser and capture and remember certain information. We use cookies to help us remember and process the items in your shopping cart, understand and save your preferences for future visits, keep track of advertisements and compile aggregate data about site traffic and site interaction so that we can offer better site experiences and tools in the future. We may contract with third-party service providers to assist us in better understanding our site visitors. These service providers are not permitted to use the information collected on our behalf except to help us conduct and improve our business.

DO WE DISCLOSE ANY INFORMATION TO OUTSIDE PARTIES?

We do not sell, trade, or otherwise transfer to outside parties your personally identifiable information. This does not include trusted third parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information when we believe release is appropriate to comply with the law, enforce our site policies, or protect ours or others rights, property, or safety. However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.

THIRD PARTY LINKS

Occasionally, at our discretion, we may include or offer third party products or services on our website. These third party sites have separate and independent privacy policies. We therefore have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites.

CHILDRENS ONLINE PRIVACY PROTECTION ACT COMPLIANCE

We are in compliance with the requirements of COPPA (Childrens Online Privacy Protection Act), we do not collect any information from anyone under 13 years of age. Our website, products and services are all directed to people who are at least 13 years old or older.

ONLINE PRIVACY POLICY ONLY

This online privacy policy applies only to information collected through our website and not to information collected offline.

TERMS AND CONDITIONS

Please also visit our Terms and Conditions section establishing the use, disclaimers, and limitations of liability governing the use of our website at globalfranchisemagazine.com/terms-conditions

YOUR CONSENT

By using our site, you consent to our online privacy policy.

CHANGES TO OUR PRIVACY POLICY

If we decide to change our privacy policy, we will post those changes on this page

CONTACTING US

If there are any questions regarding this privacy policy you may contact us using the information below. All correspondence relating to the Website should be sent to: Global Franchise 21/23 Phoenix Court Hawkins Road Colchester Essex CO2 8JY Email: subscriptions@aceville.co.uk