This papers basic question is: What are the particular requirements for a companys internal communication system, when working on the implementation of corporate identity and branding in its franchising system? Seeking an answer to this question, the reflecting effort is based on the assumption, that a franchise partner has to be convinced to cooperate, while the shop manager of a company owned retail store can be ordered to act in the desired way. This simple fact proposes certain challenges to internal communication systems. The first part of the work creates a theoretical basis on the topic by defining, how a communication system should be set up, and by pin pointing certain difficulties. The acquired knowledge is then employed on the partner company, which is a firm specialized on traditional Austrian costumes. Their communication system will be tried for its capability of mastering these challenges. Starting with an introductory overview on communication and subsequently structuring the topic, a general understanding of the subject will be enhanced. Further chapters focus on the concepts of corporate identity, branding and franchising. After introducing the applied analyzing tools theoretically, the empiric study is presented. Following the introduced structure, the companys communications system is examined. Using a GAP- and a SWOT-Analysis, the results will be put in order to determine certain sources of error and define possible improvements relevant to the specific case.