Building a Franchise: Organising Local Advertising Clearly

In your own business, decisions about adverts, promotions and window displays can often be made quickly. Once independent franchisees start operating under your brand, informal coordination is no longer enough. Your franchise network needs a reliable process for local advertising: what can franchisees create themselves, when must head office review it, and who corrects material published with errors? These rules should be in place before your first franchisee advertises their opening.

1. Turn your existing advertising into a usable support package

Start by gathering the advertising materials used by your existing business. These might include local adverts, social media posts, event announcements and printed promotional cards. Assess each format: can it work effectively at another location, or does its success depend on particular local relationships?

The result should be more than a folder of files: it should be a clearly defined support package. Set out which materials head office provides, what can be adapted and which tasks remain the franchisee’s responsibility.

A simple task list might look like this:

• Head office: core designs, general descriptions of services and network-wide campaign artwork.
• Franchisee: local contact details, opening hours, services actually available and booking local advertising space.
• Joint review: new advertising claims, local partnerships and promotions not covered by existing templates.

Distinguish between support included in the package and work that must be commissioned separately. If bespoke design work carries an additional charge, make this clear from the outset. Do not make a blanket promise of “complete marketing support” if all you actually provide is templates.

2. Use three approval levels rather than checking every detail

A head office that has to review every post individually will soon become a bottleneck. Yet without rules, conflicting messages can emerge. A practical approach is to classify material by the extent of the changes and the legal risk involved.

Level one: use without individual approval. Franchisees use current templates and change only the designated fields, such as the address or opening hours. They must check the local details and the availability of advertised services themselves.

Level two: simplified review. A franchisee wants to adapt existing artwork for a town festival or add a local partnership. A standard request form and a named reviewer will often be sufficient.

Level three: individual review. New claims about services, comparative advertising or special discount promotions require a separate assessment. Seek specialist advice where claims raise complex legal issues.

Every proposal requiring review needs a complete draft, the planned publication date and the intended channels. Set realistic turnaround times and appoint someone to provide cover. Take care that an internal target does not inadvertently appear to be a contractually guaranteed service commitment.

State explicitly what happens if no response is received. Silence should not become approval by default. An escalation process is more sensible: first follow up with the person responsible, then contact their deputy. Unreviewed drafts must remain unpublished until a decision has been made.

3. Take account of Germany’s legal framework

Germany has no dedicated franchise law and no specific government registration requirement for franchise offerings. Franchise relationships are governed in particular by the general provisions of the German Civil Code (Bürgerliches Gesetzbuch, or BGB). Standard-form contract terms are also subject to the rules on standard terms and conditions under sections 305 onwards of the BGB, taking account of the particular rules applicable to business-to-business dealings.

The European Code of Ethics for Franchising is not law. It provides a self-regulatory framework and also serves as the code of ethics for members of the German Franchise Association. It does not replace any regulatory approval required for individual advertising activities.

The German Act Against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb, or UWG) is particularly relevant to local advertising. Misleading claims about services, availability or price advantages may be unlawful. Prices advertised to consumers must also comply with the German Price Indication Ordinance (Preisangabenverordnung). The information required depends on the specific advertisement.

Approval by head office does not make an unlawful advert lawful. Nor can an internal task list alone exclude liability towards third parties. Have your contracts clarify who reviews content, who acts as the advertiser and how the parties will work together if complaints or legal challenges arise. Advertising standards must not be used to impose unlawful resale prices on independent franchisees.

Statements about your marketing support must be accurate even during discussions with prospective franchisees. Pre-contractual duties to have regard to the other party’s interests and provide relevant information arise in particular under sections 311(2) and 241(2) of the BGB. If you promise comprehensive, bespoke campaign support, you should be able to deliver it.

4. Test the process in your existing business

Before your first franchisee opens, test the process using a real local promotion. Have one person submit the draft, a second review it and a third publish the approved version. This will reveal any missing information or unclear responsibilities.

Save the approved file with its version details, permitted uses and, where relevant, an expiry date. Remove outdated templates from the active library. For errors in material already published, establish a short correction process with a named contact and a record confirming completion.

Practical takeaway: Start with a small set of tried-and-tested templates, three clear approval levels and reliable cover for the person responsible. This gives franchisees room to act locally while keeping advertising consistent across the network.