Franchisee support: how to organise it in Argentina

A successful business is not necessarily ready to support other operators. When franchising in Argentina, the owner takes on responsibility for supporting a franchise network: sharing knowledge, answering queries and helping to maintain the system. Before offering the first franchise, turn that support into a clearly defined service, with designated staff, resources and commitments that can be checked.

1. Understand the support required under Argentine law

Franchise agreements are governed by Articles 1512 to 1524 of Argentina’s Civil and Commercial Code, enacted by Law 26,994 and in force since 1 August 2015. Franchising involves more than simply authorising the use of a brand.

Article 1512 includes ongoing technical or commercial assistance in the definition of a franchise. Article 1514(d) also requires the franchisor to provide technical assistance to help the franchise operate effectively throughout the term of the agreement.

Handing over materials at the outset and then doing little more than collecting fees is therefore not enough to establish a relationship consistent with that framework. The agreement must specify how support will be provided, rather than attempting to remove a legal obligation through a generic clause.

Do not confuse support with a guarantee of profitability, either: Article 1520 states that the franchisor is not liable to the franchisee for the profitability of the franchised system. Providing support means delivering the services you have committed to, not promising financial results.

When researching the legal background, distinguish between legislation in force and legislative proposals. A bill proposing a Register of Franchising Companies and the provision of documentation twenty days in advance should not be presented as a current legal requirement simply because it appears on an official website.

2. Define your support services before selling franchises

Start by recording the queries the owner currently handles within the business: equipment problems, product questions, order coordination or difficulties using the management system. This list will help reveal how much knowledge still rests with one person.

Then divide support into three stages:

• Preparing to open: training, reviewing operational requirements and coordinating the tools needed to get started.
• Initial trading period: closely monitoring issues, reinforcing training and reviewing departures from the agreed system.
• Day-to-day operations: technical queries, updates to working practices and review meetings.

For each service, define who receives it, who provides it, which channel should be used to request it and what record will be kept. Also specify whether support will be remote, on-site or a combination of both.

Avoid phrases such as ‘comprehensive support’ unless you can explain their scope. A query about how the sales system works may be included; physically repairing a computer may be the responsibility of an external provider. Clarifying this in advance reduces disputes without undermining the support you are obliged to provide.

3. Assess your team’s actual capacity

Do not decide how many franchises you can open solely on the number of interested applicants. Your capacity to support them also limits growth.

Prepare an internal budget covering training hours, meetings, travel, support tools and cover for holidays or other absences. You do not need to turn every task into a separate charge to the franchisee: first, you need to understand the resources required to deliver what you have promised.

Assign a lead person and a deputy for each critical function. If every query ends up with the founder, support still depends on that person’s availability.

Set clear priorities. An interruption that prevents a franchise from operating needs a different response from a commercial suggestion. Define target times for an initial response and escalation procedures; do not confuse responding with resolving, particularly when third parties are involved.

Before adding more outlets, review concrete indicators: outstanding queries, recurring problems, postponed training and workload. If these are building up, strengthen your support structure or adjust the pace of openings before taking on further commitments.

4. Document commitments and check that they are being met

With local legal advice, incorporate your support service catalogue into the agreement or an expressly identified schedule. It should set out:

• Included services, support channels and service hours.
• The franchisor’s responsibilities and the cooperation required from the franchisee.
• Arrangements for visits, training and any additional services.
• The procedure for reporting issues and escalating disagreements.

Log each request, including its date, the person responsible, the response and its status. This record helps demonstrate what action has been taken and identify recurring failures that require improvements across the system rather than isolated fixes.

Hold regular review meetings with a short agenda and a written record of agreed actions. Listening to franchisees helps improve the system without confusing support with the day-to-day management of their independent businesses.

Practical takeaway: before offering a franchise, prepare a support service catalogue, assign responsibilities and check that the agreement reflects what you can actually deliver. A franchise network grows stronger through dependable support, not sweeping promises.