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GRENKE AG: Wolfgang Grenke comments on the franchise system of GRENKE AG - Seite 2

When choosing franchisees, GRENKE AG attaches much more importance to the professional qualifications of the future franchisee than to the contribution of a higher level of equity or even a high entry fee into the franchise system. Therefore, most of the managing directors of the franchise companies are former employees of the GRENKE Consolidated Group, who, however, do not have any further role in the GRENKE Consolidated Group from the time of the franchise company's foundation at the latest. They are very familiar with the tasks of a franchisor, the processes, the IT system and the risk assessment.

GRENKE AG provides support to the franchise companies in setting up local structures and, if necessary, ensures the refinancing of leasing or factoring transactions within the usual banking framework. Separate from this are start-up losses as well as the establishment of the respective franchise company itself. These costs were financed by CTP Handels- und Beteiligungs GmbH, Vienna. CTP GmbH thereby assumed the role of a private equity investor and took over precisely those opportunities and risks from the establishment of the franchise company that GRENKE AG explicitly did not want to bear. In the past, GRENKE AG repeatedly refrained from exercising the right of acquisition completely, or acquired the company at a significantly reduced purchase price.

Prior to the (indirect) takeover of CTP GmbH by Mr. GRENKE at the end of January 2020, GRENKE AG and Mr. GRENKE himself
- did not hold any shares in CTP GmbH or structures associated with it,
- did not control them,
- did not represent them.

Mr. Grenke himself did not receive payments from CTP or the entities of the affiliated structures.

The acquisition of CTP at the beginning of 2020 has been conducted transparently since the beginning of the contract negotiations in 2018 and is welcomed by GRENKE AG as a result. The increased influence of the GRENKE AG franchise system is thereby taken into account.
As early as 2014, Garuna AG acquired 10% of individual franchise holdings from CTP GmbH, with the aim of reducing CTP's shareholding in the franchise companies to below 50% and thus preventing it from having majority control. The shares in Garuna AG are held by a personal confidant of Mr. Grenke, Ms. Corina Stingaciu, as the beneficial owner.