Franchising is a rapidly growing business model in Greece and has been a successfull method for companies to expand.
Sales through franchised outlets in Greece alone have grown from 1milion Euro in 1984 to over 18 milions Euro in 2004. The number of different franchise systems and franchised outlets has increased substantially.
Franchising is growing in other countries across the globe and particularly in Europe. It is a system which makes it easier for companies to expand internationally and some franchise companies are now among the largest multinational operations in the world.
Before deciding whether your company is right for franchising, let's take a look at the advantages and disadvantages.

Advantages

• Franchising enables your company to expand using capital raised through your franchises and, therefore, your own financial commitment is reduced.
  
• You do not have to rely on your business making enough money for you to open new branches
  
• Franchisees investing in their businesses are more likely to be more motivated than conventional managers
  
• Less staff are required to run the head office and sales team than a conventional business.
  
• Less exposure to the problems associated with conventional businesses, such as recruiting, retaining staff and security of stock and cash
  
• International expansion and the benefits of opening up in an foreign country through a master franchise has enormous potential

Disadvantages

• You do not own the branches, thus not earning the same as a company-owned chain
  
• You have less direct control over the network. You will however be able to terminate a contract with a franchisee who does not follow the system
  
• You pass on the rights to use the trademarks and business system to outsiders and you need to be sure that you have some recourse if they are dismissed
  
• You need to select you franchisees with great care to ensure your network develops to its full potential and that franchisees are capable and prepared to conduct their business according to your system
  
• Your rate of growth will depend on your ability to attract new franchisees who are capable and have the right resources
  
• Franchising is not a system to launch into to raise finance immediately. Your company should have taken the preparatory steps and have proved and disproved a pilot operation, operated at arms length form your own business over a sufficient period of time
  
• You have the moral responsibility to ensure that your franchisees, who have invested their life savings in the business, are successful
  
• Having considered the above advantages and disadvantages, you need to look at the question whether your business is suitable to be franchised? Most types of businesses are suitable for franchising, however there are some businesses which may not lend themselves to franchising and some that may be impractical.

Businesses with poor gross profit margins usually make poor candidates, unless the franchisee has the opportunity to quickly build up a substantial turnover. There have to be sufficient margins in the business, in terms of money and time invested, to make it worthwhile to both the franchisor and franchisee.
The franchisor has to have sufficient income from their franchisees to pay for the service they have contracted to provide in the franchisee agreement and, at the end of the day, to make a profit commensurate with their investment and effort. The franchisees have to trade sufficiently well to pay their franchisor for the services they provide and also make their profits.
Your easy to follow business system should be capable of being taught to complete strangers with no prior experience. The more skill, training or personal ability required by the franchisees - even as such general term as marketing and sales - the more difficult it becomes to recruit the right people. On the other hand, the business should not be so simple as to be copied, or one with an end product that the public can buy universally and cheaply.
The business should be one in which the franchisor is capable of exercising control over the activities of the franchisees and the way they operate their outlets. Most importantly, the franchisor must be in a position to audit turnover levels and, consequently, the payment of fees. There must be adequate controls to avoid under-declaration of receipts by franchisees.

Conclusion
The best businesses to franchise in Greece or in Europe are those with a good trading record, strong branding and marketing programs, and an established business system which can be encapsulated in an operation manual and easily passed on in a short time to newcomers. Also, if it is to be aimed at the largest sector of the franchisee market, it should not require too high of investment.