Autonomy in franchising: what to assess before buying

Buying a franchise means running your own business within a shared model. In franchising, standardisation helps preserve the brand’s identity, but also limits the business owner’s choices. Before buying, it is worth answering a practical question: are you comfortable with this network’s limits on how you manage the business? This assessment requires more than liking the products or identifying with the brand.

1. Separate business responsibility from freedom to make decisions

The franchisee takes responsibility for operating the outlet, but that does not mean being free to change the business at will. Recruiting staff, managing finances and serving customers may fall within your remit, while product presentation, visual identity and procedures must follow the franchisor’s standards.

Brazilian Law No. 13,966/2019, known as the Franchising Law, governs this model in Brazil. It provides for contractual permission to use a brand in connection with selling products or services and using methods and systems for setting up and managing the business, in return for payment.

The law also states that a franchise arrangement does not create a consumer relationship or an employment relationship between the franchisor and the franchisee or the franchisee’s employees, including during training. Buying a franchise is therefore not the same as taking a job with limited autonomy: you become a business owner and assume the risks.

The key is to identify where you have responsibility without corresponding freedom to act. If you are accountable for sales results, for example, you need to know which sales tools you can use and which require approval.

2. Map out decisions at outlet level

Ask the franchisor to explain, with examples, how decision-making is allocated. Create a table with four categories: decisions you can make freely, decisions governed by standards, decisions requiring approval and decisions you are not permitted to make.

Include at least the following areas:

• Staff: recruitment, staffing levels, roles, uniforms and compulsory training.
• Customer service: scripts for approaching customers, handling complaints and remedies the manager can offer.
• Products and services: adding products, adapting services and fulfilling requests outside the standard range.
• Local marketing: creating online profiles, publishing content and partnering with nearby businesses.
• Day-to-day operations: opening hours, layout and changes to procedures.
• Sales initiatives: taking part in campaigns, offering discounts and setting payment terms.

Do not assume that all networks handle these matters in the same way. Nor should you assume that every restriction is legally valid: commercial rules, particularly those concerning pricing, may require specific legal advice.

For each approval required, ask who makes the decision, how requests should be submitted and how long a response usually takes. Scope for adaptation may be of little practical use if it depends on an ill-defined process.

3. Check what the documents say about your role

The Circular de Oferta de Franquia (COF), Brazil’s franchise disclosure document, must describe the ideal franchisee profile, including previous experience, educational background and other required or preferred characteristics. Law No. 13,966/2019 also requires information on the extent to which the franchisee must be directly involved in operating and managing the business.

Use these descriptions to examine what the work involves, not just how much time it takes. Does the brand expect you to sell directly to customers, lead the team, monitor performance indicators or carry out technical tasks? Any presentation promising straightforward management needs to match the duties actually required.

Compare the COF with the standard franchise agreement and its appendices. Check how the manuals form part of your obligations and how updates are communicated. Ask whether changes to procedures could require new equipment, further training or a reorganisation of the team, and how the agreement deals with those consequences.

The COF must be provided at least ten days before you sign the agreement or a preliminary agreement, or pay any fee to the franchisor or a person or company connected with it. This is a minimum advance disclosure period, not a deadline for making your decision. Take the time you need to clarify any incompatibilities with legal support.

4. Test your fit against real situations

Before making any commitments, suggest an authorised observation visit to an outlet. The aim is not to replace staff or provide unpaid work, but to understand how the standards apply in everyday operations, while respecting confidentiality and customer data.

Bring concrete scenarios to discuss: a customer requests a different service; a local partnership looks promising; a compulsory procedure increases service time. Ask what the franchisee can resolve independently and how suggestions are put forward.

Then consider your own reaction. Can you apply a standard you do not entirely agree with? Are you willing to seek approval before testing an idea? Can you distinguish a personal preference from a demonstrable improvement?

Also look at whether the network provides clear channels for proposals. Having a voice does not mean having the right to impose changes, but it does help you understand how franchisees’ experience contributes to the wider network.

Practical conclusion: before buying, write down which decisions you must be able to make yourself and compare that list with the brand’s documented rules. If there is a fundamental mismatch, look for another model rather than relying on future exceptions.