Franchising in Greece: choosing your first franchisees

The first person to apply is not necessarily the right person to become your first franchisee. When an established business expands through franchising, it needs people who can put its model into practice, not simply pay the initial fee. A structured selection process protects both sides and lays sound foundations for the emerging franchise network.

1. Define the role before looking for candidates

Before inviting expressions of interest, answer a fundamental question: what exactly will the franchisee do? An outlet where the franchisee works every day requires a different profile from a manager-run unit overseen by an investor. If this distinction remains unclear, discussions will begin with conflicting expectations.

Draw up a short role description based on how your business actually operates. Set out:

• The required level of personal involvement and the main management responsibilities.
• The skills candidates must already possess.
• The knowledge they can acquire through training.
• The need to manage staff, customers and day-to-day operational issues.
• The willingness to follow shared standards and share operational information.

Distinguish essential qualities from desirable ones. Previous business experience may help, but it does not, on its own, demonstrate an ability to work collaboratively. Equally, enthusiasm for the product is no substitute for organisational skills. Use the same profile for everyone, so that you do not change your criteria simply because a candidate has an attractive property or readily available funds.

2. Make the interview a test of practical ability

A pleasant conversation is not enough to predict how someone will behave when running the business. Ask for specific examples: when the candidate dealt with a customer complaint, how they organised a team, and what they did when a process failed to deliver the expected result. Examine their actions, not just how well they present them.

Use a consistent set of questions and a simple rating scale with descriptive criteria, such as ‘not demonstrated’, ‘needs development’ and ‘adequately demonstrated’. This allows two assessors to compare their observations without relying solely on intuition.

Add a short exercise based on a hypothetical scenario. For example, ask the candidate to explain how they would handle a staff absence, a delayed delivery and a complaint at the same time. You are not looking for someone who can recite the manual, but for sound priorities, composure and a willingness to ask for support.

A structured observation visit to an existing outlet is also useful. Provide a clear schedule and time for questions, without giving access to identifiable customer or employee information. The visit must not become informal, unpaid work, nor should it showcase only a carefully selected ‘easy’ day.

3. Check that expectations and capabilities align

Financial capacity is an essential criterion, not a sufficient reason to accept a candidate. Request supporting documents appropriate to the stage of discussions and explain why you need them. Distinguish between the candidate’s own available funds and finance that is still awaiting approval. Do not treat a verbal estimate of potential bank borrowing as secured funding.

At the same time, assess whether the candidate understands the nature of the relationship. Ask which decisions they expect to make independently, what support they consider essential and how much time they can realistically commit. Someone seeking a passive investment is unlikely to suit a model that requires hands-on daily management.

The assessment should work both ways. Allow candidates to ask difficult questions and consult their own professional advisers. Seeking independent due diligence is not a sign of distrust. Pressure to sign immediately, by contrast, can leave significant differences unresolved.

4. Document the decision within the appropriate legal framework

Greece has no single franchise-specific law, nor a dedicated statutory regime for mandatory pre-contractual disclosure comparable to those in some other countries. The general principles of the Greek Civil Code apply, particularly good faith during negotiations and the related liability under Articles 197–198, alongside the rules governing commercial law, unfair competition and competition law.

The European Code of Ethics for Franchising is a self-regulatory framework, not Greek law. Its emphasis on transparency and lawful cooperation is also useful when selecting candidates. The absence of franchise-specific legislation does not permit misleading promises or the withholding of material information.

Keep a brief record for each candidate: the information reviewed, the assessment against each criterion, outstanding issues and the reasons for the decision. Where you collect personal data, the General Data Protection Regulation and Greek Law 4624/2019 apply. Limit collection to what is necessary, explain how the data will be processed, and define access rights and retention periods.

Practical takeaway: before accepting your first franchisee, prepare a role description, a standard questionnaire and an assessment form. Choose on the basis of demonstrated suitability, not how quickly someone can sign.