We’re excited to welcome Hinrich Cordts to the FRANCHISEBIZ team! With over 20 years of experience in franchising and a deep understanding of the DACH region, Hinrich brings invaluable expertise to our mission of connecting brands with the right franchisees.
Can you tell us a little about yourself, your career history, and how you came to be involved with FRANCHISEBIZ ?
Hello and thank you, I’m excited to join the team!
My journey started with Alex and Laurent (The founders of FRANCHISEBIZ) when we first worked together at BoConcept. We helped open numerous stores and learned a great deal about franchising. We called ourselves the ‘The Three Musketeers’ and gained a lot of valuable experience that we can now offer to partners and prospective franchisees. We learned to see things coming and that experience inspired the foundation of a strategic approach that goes far beyond just having a ‘little black book’ of contacts and a telephone, like people used to rely on.
For over 20 years I’ve focused on strategic franchise development and I’m excited to reunite with my old colleagues and to be working with such high calibre people again.
Laurent and Alex have got tremendous expertise—Laurent specializes in strategy and methodology, while Alex has global experience opening stores everywhere from Europe to Singapore and Dubai. They really know the whole world and their knowledge of distribution development is unmatched.
What attracted you to working with FRANCHISEBIZ, and what differentiates it from other franchise consulting brands?
FRANCHISEBIZ has two clear USPs that stood out to me.
First and foremost, the people. The business boasts an extraordinary level of experience and competence. The franchise world is becoming increasingly global and while big brands often try to expand internationally, sometimes they win, sometimes they don’t. It can be a little ‘hit and miss’ and often they never figure out what the secret to success is.
The strength of the FRANCHISEBIZ team is its ability to build the right distribution networks from the outset. They know how to bring international brands into local markets efficiently, without needing expensive, on-the-ground offices in those locations.
Secondly, the FRANCHISEBIZ approach to franchisee recruitment is the best I’ve seen.
The world has changed and traditional passive recruitment methods are completely outdated. FRANCHISEBIZ takes a proactive, targeted approach to precisely identify and attract the right candidates. It’s a modern and highly effective method, that gives us a strong edge. The best people expect to be approached and attracted in a proactive way and that’s something FRANCHISEBIZ is really good at.
Finally, the network and relationships we’ve collectively cultivated are invaluable. While the industry is competitive it’s also a small world and we know how to connect with the right people.
Your new role focuses on franchise development in the DACH region. What challenges exist in this region?
In Germany, the challenge lies in helping franchisors expand beyond borders. I’ve developed an in-depth understanding of the DACH region, where retail markets are highly nuanced. For example, Germany presents unique economic and cultural differences between east and west and between regions. Big brand retailers like Walmart and Carrefour have struggled here because they couldn’t adapt to these specifics and put down roots.
In this market, earning customers’ trust is critical. Germans are highly price-conscious but once trust is established, they are loyal and willing to spend. The food sector is dominated by discounters, unlike France for example, where premium food experiences are more appreciated, German consumers love a good deal! Navigating this landscape requires a blend of strategy, local knowledge, and a deep understanding of consumer behaviour.
What excites you most about opportunities in this part of Europe?
The pandemic dramatically reshaped the retail landscape. Many traditional retailers closed, leaving manufacturers with limited distribution channels. The brands need a retailer in each location, but the pool of traditional retailers is still aging and shrinking.
This creates a huge opportunity for franchising, as brands look for partners to fill those gaps. With FRANCHISEBIZ’s expertise, we’re uniquely positioned to identify these partners and help brands thrive in a challenging market. The brands can’t always find the right people, but we know the right people are out there and we can help to find them.
How is the franchising industry performing in the region right now? What are its main challenges and opportunities?
There’s lots of potential in the region, but challenges include language barriers, high taxation and a cautious financial environment. Germans tend to rent rather than own homes and they prioritize spending on travel and cars. That said, Germans love good craftsmanship, urban life and well-designed products so the market is definitely open and there’s lots of opportunity here to reach new customers.
Starting a business in Germany is complex. Financing can be challenging, as banks are very conservative. However, the government offers generous subsidies and funding, which can be a game-changer. Some of these subsidies don’t need to be repaid, making it easier for franchisees to secure funding with the right guidance.
What advice would you offer someone considering becoming a franchisee in the DACH region?
My advice would be to work with a team of experienced consultants like FRANCHISEBIZ !
It’s important to understand the market you are entering and the available support systems in that area. We have knowledge in both, which is a great place to start if you’re an entrepreneur looking to start a franchise. We can help you understand financing options and specific local knowledge (for example German government subsidies) and we always provide honest and credible information on the franchise you are exploring.
It is in our interests to help you and when you work with us, we are consultants working on your behalf. In Germany the government even pays for consultants like us, because for a founder who is doing things himself, it’s 50% likely they’ll fail in the first 3 years. But with a consultant by their side, it’s 90% likely they’ll succeed within the first 3 years. Why? Because the consultant keeps them away from making mistakes.
We don’t even present a candidate to the system if we don’t believe they will succeed. By doing that we protect both the franchisee and the franchisor. We are better to talk to than going direct to talk to the brand, because we have a vested interest in matching the right person with the right brand, so we will be honest and won’t waste your time if we don’t feel you are the right fit.
What qualities do you particularly value in franchisees and what type of candidates are you searching for?
The most successful franchisees are those that have personality, pride in their business and they’re only delighted when their customers are delighted. It’s the way you deal with and interact with your customers that is important and for me the single most important trait required to be a successful entrepreneur is helpfulness. If a shopkeeper is genuinely delighted to help serve their customers and create a special, positive experience, they’re likely to succeed. It’s ultimately about putting customer satisfaction before profit.
What should readers do if they’d like to explore franchise opportunities with FRANCHISEBIZ ?
We encourage anyone interested to reach out to us directly. Whether you’re a brand looking to expand or a potential franchisee seeking guidance, we have the expertise to help you succeed.
Thanks, Hinrich! It was great to discuss with you and hear about your story!
If you’re an entrepreneur or a franchise brand aiming to develop in the DACH markets, please get in touch with Hinrich for a chat today!
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