The founding of a franchisee operation often paves the way to a self-sufficient and successful future career: With the strength of the franchisor as a continuous supporting moment and the simultaneous ability to independently design the franchise, franchising is considered one of the most promising types of self-employment. However, the establishment of a franchise operation requires a certain monetary investment in order to finance, for example, a shop and license fees. If the founder is neither in a position to pay the required amount of equity nor through debt financing, the idea is bound to fail. But such a situation is not synonymous with the definitive end of the franchise concept: state subsidies can be used where essential funds are missing. Review the following overview by Engel & Völkers, your partner in the real estate franchise, which subsidy opportunities you have as a franchisee and who offers itself as a sponsor in your situation.
State funding is also established by law for franchisees
An economy benefits from a high level of company start-up rates and implemented franchise concepts in several aspects. For example, young productive franchises encourage economic growth, and they often help diversify supply and maintain market competition. For this reason, Article 104b of the Basic Law affirms the need for financial subsidies for start-ups, including openings of franchises. The main institutional sponsor of these subsidies in Germany is KfW Bankengruppe, whose shares are held by the federal government at 80% and at 20% by the federal states. In addition to support programs for start-ups, models are also offered to promote further business development after the founding has been completed - depending on your personal situation as a franchisee, it is therefore advisable to look at the existing possibilities of subsidization. By the way: KfW Bankengruppe also has independent development banks in the federal states themselves, so it could make sense to obtain offers from different sources.