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GRENKE AG: Wolfgang Grenke comments on the franchise system of GRENKE AG

DGAP-News: GRENKE AG / Key word(s): Statement GRENKE AG: Wolfgang Grenke comments on the franchise system of GRENKE AG 17.09.2020 / 17:12 The issuer is solely responsible for the content of this announcement. Wolfgang Grenke comments on the franchise system of GRENKE AG

Wolfgang Grenke, founder and Deputy Chair of the Supervisory Board of GRENKE AG, comments as announced on the complex of topics of the franchise system, which is one of the accusations made by Viceroy Research against him personally and GRENKE AG. As previously announced, the Board of Directors will also provide an explanation together with the Chair of the Supervisory Board, Prof. Dr. Lipp, and the Deputy Chair of the Supervisory Board, Wolfgang Grenke, tomorrow, Friday, on all other issues and refute the accusations in detail.
In addition to his role as a shareholder with an arithmetical interest of approx. 8% in GRENKE AG, Wolfgang Grenke has also been the sole shareholder of SACOMA AG since January 2020 and thus an indirect shareholder of CTP-Handels- und Beteiligungs GmbH. Together with the respective managing directors of the franchise companies and other financial investors, CTP-Handels- und Beteiligungs GmbH purchases interests in the franchise companies.

GRENKE AG has been operating a franchise system since 2003. This allows franchisees to establish a business operation for leasing and factoring in a new market.

Wolfgang Grenke: "The franchise system is one of the success factors of GRENKE AG and one of the essential drivers for the expansion during the past 10 years and for our future growth".

The core of the franchise system is not the collection of recurring franchise fees, but rather the right (not the obligation) of GRENKE AG to take over the franchise companies after a period of 4, 5 or 6 years. This takeover right is linked to a valuation model for determining the purchase price set as of inception.

The model offers the shareholders of the franchise company the prospect of achieving a capital gain and gives the Consolidated Group the opportunity to take over franchise companies only if and when they have already established themselves in the respective market and offer significant growth potential. This model has proven to be more dynamic and promising than the option of setting up Consolidated Group-owned local companies from the ground up.