I can confirm this. I have had several instances where I have flown FRA-MUC->destination to pick up friends in Munich to continue onward together and take advantage of the companion award. Sometimes this has been somewhat of a hassle for me because I could almost always fly directly otherwise.

Just be warned for intra-European flights-in the world of spiralling taxes and fees on flights, making an intermediate stop in Germany can add a significant amount to the overall cost of the ticket. This factor should certainly be weighed, particularly in the days of fly smart flights for 18.000 miles.