Buying a franchise in Belgium: assess the value of its know-how

A recognisable brand name does not necessarily make a workable business model. When you join a franchise network, you also pay for knowledge that enables you to run an independent business using a proven approach. But what exactly are you getting: a fully developed business concept or mainly general business advice? A focused assessment before you buy will help you establish whether the know-how on offer is sufficiently specific, transferable and suitable for local use.

1. Establish what knowledge you are actually buying

Know-how is more than a collection of documents. It is practical knowledge developed by the franchisor that helps you put the franchise model into practice. Examples include methods for staff scheduling, quality control, service delivery or reducing stock losses.

Do not simply ask whether there is a manual. Ask for a contents page, a demonstration of selected operational processes and an overview of the knowledge you will actually be entitled to use. Distinguish between:

• General knowledge: information that any business owner can easily find elsewhere.
• Franchise-specific knowledge: concrete procedures, templates and working methods particular to the concept.
• Individual experience: insights that, for now, exist mainly in the head of the founder or an experienced branch manager.

That last category deserves particular attention. A successful showcase outlet does not automatically prove that a new franchisee can follow the same approach. Ask how individual experience has been translated into instructions, decision-making rules and checkpoints.

Ask the franchisor to work through a familiar problem, such as an unexpected surge in staffing needs. What information does the business owner gather, what decision follows and what tool supports that decision? This will help you see whether the franchise model goes beyond polished presentations.

2. Check whether the method is transferable

A manual can be extensive yet offer little practical guidance. Check whether a new user can work with it without constantly asking for verbal explanations.

Request a demonstration with an agreed scope, using anonymised data. For example, ask to see how an order, customer enquiry or quality issue is handled under the franchise model. Pay attention to the steps involved, exceptions and guidance on dealing with errors.

Useful questions include:

• Are responsibilities clearly described for each task?
• Do the instructions also explain what to do when something goes wrong?
• Are the documents consistent with the software used?
• Is it clear which version is current?
• Can an employee learn the method without direct contact with the founder?

The aim is not to obtain every trade secret before signing. Controlled access or a demonstration may be enough to assess the structure and usability of the know-how. Agree in advance what you may view and what information your adviser may review.

If even this limited access is unavailable, a significant part of your purchase remains difficult to value. Treat that as an uncertainty, not as proof that the knowledge is worthless.

3. Assess its suitability for Belgium

A franchise model that works elsewhere is not automatically ready for your Belgian business. Find out which elements have already been applied locally and which you will still need to adapt yourself.

Consider guidance on communicating with local customers, the languages staff work in and processes that meet Belgian administrative requirements. Translating a foreign manual is not the same as adapting its content.

Create a simple table with three columns: available at launch, still to be developed and responsible party. Also note whether any adaptations require additional software, training or external support.

For a newer concept, ask which procedures have actually been tested and which still rely on assumptions. A young franchise network can be attractive, but your decision needs to take account of the development work involved. You want to avoid paying for a fully developed concept only to find that you have to build a substantial part of it yourself.

4. Link your assessment to Belgian legal requirements

Belgium has no single, comprehensive franchise law, but commercial cooperation agreements are subject to specific pre-contractual rules. Title 2 of Book X of the Belgian Code of Economic Law, Articles X.26 to X.33, is central here. The statutory definition includes business models involving the transfer of know-how.

Under Article X.27, you must receive the draft agreement and a separate pre-contractual information document at least one month before entering into the agreement. This disclosure obligation does not replace your practical assessment of the know-how. The documents must also be drafted in clear, understandable language.

A confidentiality agreement can allow a controlled review of trade secrets. Such agreements are covered by an exception to the prohibition on entering into commitments during the statutory waiting period. Have the scope of that exception assessed; it is not blanket permission to take on other purchase commitments in advance.

Finally, have it recorded which materials, systems and rights of use are included in your purchase, and when they will become available. General contract law remains relevant to the agreed obligations.

Practical conclusion: do not buy an unseen promise. Ask for a concrete demonstration, check suitability for Belgium and establish exactly which know-how you will be able to use from the outset.