Buy a Franchise or Running Business from Germany: Guide

Buy a franchise or running business from Germany: the short answer

You can buy a franchise or running business from Germany, or put savings into real estate, but the three routes ask for very different things. A franchise sells you a tested system and charges ongoing fees. A running business sells you existing customers, staff and liabilities. Real estate sells you an asset with high entry costs and slow returns. Choose by how much time, risk and control you want, then check the offer before you pay.

This pillar guide is written for Arabs in Germany and Europe who have built savings, often partly in gold, and now ask what it would take to own something that works. The timing is real: hundreds of thousands of German owners are looking for a successor, and many franchise systems are looking for partners. This guide compares the three routes, explains how each purchase runs in Germany, and gives a checklist for testing any offer. It is general information, not tax, legal or investment advice. For your own case, speak to a German tax adviser (Steuerberater) and a lawyer before you sign.

Why move from saving to owning at all?

Many Arab families in Germany save in three places: a bank account, gold and money sent back home. Gold protects purchasing power and is easy to hold, which is why we track the live gold price in Germany for readers who buy and sell it. But gold does not employ anyone, does not build a customer base and does not produce income. Ownership of a business or a property can, if it is chosen well.

The move from saving to owning is not a move from safety to profit. It is a move from one set of risks to another. Savings in gold carry price risk. A business carries operating risk: rent, staff, suppliers, competition and your own time. Before you sell gold to fund a purchase, read how private gold sales are treated in our guide to taxes in Germany for Arab savers, and if zakat matters to you, how the nisab on gold in Germany is calculated.

Franchise, running business or real estate: how do the three routes differ?

The table below compares the routes on the questions that decide most outcomes. It describes typical structures, not promised results.

None of the three is better in general. A saver with time and an operating background may prefer a running business. A saver who wants a proven playbook may prefer a franchise. A saver who wants to stay out of daily operations may lean towards property, accepting slower and less flexible returns. Our comparison of a franchise or an existing business goes deeper into the first two.

How does buying a franchise in Germany work?

Germany has a large, mature franchise market. According to the German Franchise Association (Deutscher Franchiseverband), as cited by IHK Hannover (page dated 12 November 2025), there are about 860 franchise systems with almost 150,000 franchisees and 830,000 employees. Choice is not the problem. Selection is.

There is no separate franchise law in Germany. The duties of a franchisor before a contract come from general civil law and case law, in particular section 311(2) of the German Civil Code, which creates duties of consideration as soon as contract negotiations begin. That is one more reason to read every page of the contract with your own lawyer. IHK Pfalz notes that ongoing franchise fees are typically between 1 and 15 percent of net sales, depending on the system. That range alone shows why two franchises with similar revenue can leave very different profits. On the same net sales, a system charging 12 percent takes three times as much as one charging 4 percent, before rent and wages are paid.

The franchisee checklist of the German Franchise Association asks six questions worth copying into your own notes: is the franchise package solid, what strengths does the system have in the market, in sales and in purchasing, what is the situation of the franchisor, do the numbers add up, what must be considered on location and financing, and which contract points matter most.

In practice that means asking for the results of the pilot outlet, the operations manual, proof that the trademark is registered, and the contact details of current franchisees you can call without the franchisor present. If you want to own a franchise without working in it every day, read first how semi-passive franchise ownership really works, because many systems do not allow it.

How do you buy a running business in Germany?

A wave of owners in Germany are looking for successors. The KfW succession monitor of 9 January 2026 counts 545,000 small and medium-sized companies whose owners want a successor by the end of 2029, and 42 percent of those planning a succession consider selling to an external buyer. The same study counts 569,000 owners who plan to close instead, which for the first time slightly exceeds the number seeking a successor.

For a buyer this means real supply, but also that some businesses are for sale because they no longer work. Many listings appear on nexxt-change, a free succession exchange that IHK Ostwestfalen describes as a joint initiative of the Federal Ministry for Economic Affairs, KfW and the German Chambers of Commerce, with partners from the crafts sector, cooperative banks and savings banks.

IHK Stuttgart sets out the usual order of a purchase:

• A confidentiality agreement (NDA) before the seller shares sensitive information
• A letter of intent (LOI) that sets out the intended deal
• A first draft of the purchase agreement, then due diligence with outside experts
• Negotiation of price, transfer date, liabilities, warranties and guarantees
• Signing, then closing, when ownership legally transfers, sometimes weeks or months later

Two structural choices shape your risk. In a share deal you buy the company itself, with all its liabilities. In an asset deal you buy selected assets, which helps avoid unknown liabilities. In both cases, staff contracts can pass to the buyer under section 613a of the German Civil Code, and IHK Stuttgart suggests tying payment to a tax clearance certificate (Unbedenklichkeitsbescheinigung) from the tax office. Our list of 12 questions before you buy a franchise or business helps you prepare the first meeting with a seller.

How can you finance a franchise or business purchase?

Most buyers combine savings with a bank loan. Germany’s public development bank KfW offers the ERP start-up loan StartGeld through your own bank (Hausbank). According to IHK Gera, it now covers up to 200,000 euros per founder, of which up to 80,000 euros can go to working capital, and it is open to founders and to people taking over an existing company. You apply through your bank before the project starts, and the bank decides on collateral.

Banks ask for a business plan and for the same documents you need for your own due diligence, so preparing them early serves both purposes. If you prefer financing that follows Islamic principles, ask early whether a bank or partner offers a suitable structure, and have your adviser review the terms.

Is real estate the safer route for savers in Germany?

Property feels familiar, and for many families it is the first idea. It is less flexible than it looks. In Germany every purchase triggers a one-off real estate transfer tax (Grunderwerbsteuer) that each federal state sets: according to Baufi24 (updated May 2026), it ranges from 3.5 percent in Bavaria to 6.5 percent in North Rhine-Westphalia, Brandenburg, Saarland and Schleswig-Holstein. Add notary and land registry costs, and part of your capital is spent before the first rent arrives.

Property abroad is a separate decision with its own law, currency and tax questions. If you are weighing Türkiye, our guide to property, franchise or trade in Türkiye compares the options there. Whatever the market, ask for the land register extract, the full cost of purchase, and realistic vacancy and maintenance assumptions in writing.

How do you check an offer before you pay?

Most losses do not come from bad luck. They come from paying before checking. IHK Pfalz and the Verbraucherzentrale (page dated 20 March 2026) list warning signs that apply to franchises, businesses and private investment offers alike. Use them as a checklist:

• High profit promises, or guaranteed or unusually high returns
• Time pressure: “only today”, “last chance”, or too little time to review the documents and the contract
• Payments demanded in advance, before a contract is signed
• No pilot outlet, and a refusal to show business figures
• No references from current franchisees or customers
• Trademark rights that cannot be proven, or no operations manual
• Contact moved to messenger apps instead of official channels, and a missing or incomplete legal notice (Impressum)
• Requests to install software or allow remote access to your computer

Then verify the seller yourself. Look up the company in the official commercial register (Handelsregister), remembering that registration proves existence, not solvency. Ask for annual accounts, the lease, and a list of contracts and equipment, and have an independent Steuerberater read the figures. Our guide to red flags in business-for-sale and franchise deals shows how these signs look in real offers. If you already hold an offer, you can send it to 7Grounds Deal Check for a second reading before you commit.

If the offer concerns a shop, land or a partnership in Syria, the same checks apply, plus sanctions screening and a written confirmation from your bank of the transfer route. Our guide to Syria after the EU lifted sanctions sets out what changed in 2026 and what did not.

How much of your own time does each route need?

Time is the cost most savers underestimate. A franchise usually expects the franchisee to work in the business, at least in the first years, and many systems write this into the contract. A running business needs you most during the handover, when customers, staff and suppliers decide whether to stay. Real estate needs the least daily time once a reliable manager is in place, but it ties up capital for longer.

If you have a full-time job in Germany and want to keep it, be honest about this from the first conversation. A structure with a capable local manager, clear reporting and your role limited to oversight is possible, but it has to be built into the numbers, because the manager is paid before you are.

Which route fits your situation?

• You have operating experience and time: a running business can give you the most control and the shortest path to existing revenue, if the due diligence is thorough
• You want a proven playbook and support: a franchise with a visible pilot, transparent fees and franchisees you have spoken to yourself
• You want to stay out of daily operations: real estate, or a franchise that explicitly allows a manager, with the extra cost built into your plan
• You are not sure yet: keep saving, study two or three real offers in depth, and decide only when the documents answer your questions

Whatever you choose, keep an emergency reserve outside the deal and never invest money you may need within the next few years.

Your next step: for the offer in front of you, collect five documents before any further meeting: the full contract, three to four years of accounts or the pilot results, the commercial register extract, the lease, and a written list of every fee. Then book one hour with an independent Steuerberater.

Frequently asked questions

Can I buy a franchise in Germany without business experience?

Many systems accept newcomers and train them, but each franchisor sets its own requirements. Ask what training is included, what it costs, and how many current franchisees started without experience.

Is there a franchise law in Germany?

No separate franchise law exists. Pre-contract duties come from general civil law, so the contract and what the franchisor tells you in writing matter more than any brochure.

Where are businesses for sale listed in Germany?

One of the main channels is nexxt-change, a free succession exchange backed by the Federal Ministry for Economic Affairs, KfW and the chambers of commerce. Brokers, banks and trade associations also hold listings.

What is the difference between a share deal and an asset deal?

In a share deal you buy the company with all its liabilities. In an asset deal you buy selected assets, which helps avoid unknown liabilities. Your lawyer and tax adviser should decide which fits your case.

Should I sell my gold to buy a business?

That is a personal decision. Check first how a sale is taxed in your situation and how much reserve you will keep. You can follow the gold price in Germany live and set an alert before you decide.