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Franchising In Austria

Franchising is the licensing out of a business name, product, technique, philosophy, trademark, etc, for a percentage of the income. Instead of setting up new outlets as part of your expansion, you license your existing business blueprint out to franchisees who then set up and manage it for you.

The benefits of franchising your business in Austria include: more freedom, as the franchisee takes on major responsibilities; minimal expense; lower cost and higher profits; potential for fast growth; brand building.

Disadvantages of franchising a business in Austria: although few, rely predominantly on your franchisees. They include: poor quality franchisees; franchisees not declaring all income; poor performance.

The Austrian market seems to be especially attractive for foreign franchise systems, having established itself by the mid-1980s. In 2006, the franchising business in Austria reached a six-digit volume of 100,000 jobholders. No franchising specific legislation exists in Austria. As Austria is an EU member, the EU regulation applies here.

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