Franchise training: what to assess before you buy

Buying a franchise does not mean you are ready to run it. Initial training should turn the brand’s methods into skills you can apply in the business. When assessing a franchise opportunity in Brazil, this preparation deserves scrutiny in its own right: before investing, find out what you will be taught, how much participation will cost and what happens if you are not ready to open.

1. Check the legal requirements for training

Brazil’s Law No. 13,966/2019, known as the Franchise Law, requires the franchise disclosure document (Circular de Oferta de Franquia, or COF) to state what training is actually offered to franchisees and their employees, specifying its duration, content and costs. This requirement appears in Article 2, item XIII, subparagraph ‘d’.

A generic description such as ‘comprehensive training to run the outlet’ therefore does not allow you to assess the offer properly. Look for enough information to understand the scope of the preparation and the expenses involved.

The law requires transparency, but it does not set a universal minimum number of training hours or guarantee that everyone will be ready by the end of the programme. Applicants need to check the quality and suitability of the training themselves.

The COF must be provided at least ten days before you sign the franchise agreement or a preliminary agreement, or pay any fee to the franchisor or a person or company connected with it. Treat this as a minimum period for consideration, not a requirement to complete your assessment within ten days.

2. Compare the content with the tasks you will take on

Ask for a detailed syllabus and match each module to the outlet’s day-to-day activities. The aim is not to count lessons, but to establish whether you will learn to carry out and supervise the tasks you will later be expected to perform.

Draw up a list covering four groups of skills:

• Operations: delivering the service or preparing the product, controlling quality and dealing with problems.
• Management: monitoring cash flow, interpreting performance indicators and organising administrative routines.
• Customer service: handling sales and complaints, and following customer relationship procedures.
• Leadership: guiding employees, allocating tasks and checking compliance with standards.

Consider your starting point too. If you have never run a business, you may need grounding in areas that a programme focused solely on the brand’s procedures does not cover. The COF itself must set out the ideal franchisee profile, including previous experience, educational background and other required or preferred characteristics.

Ask which skills and knowledge are prerequisites and which will be taught. If there is a significant gap, assess whether you need additional training before committing to the purchase.

3. Calculate the full cost of taking part

‘Training included’ may simply mean there is no separate charge for the lessons. It does not clarify who pays for travel, accommodation, meals or employees’ wages during training.

Request a written breakdown of the expenses included in the agreement and those you must cover yourself. Confirm the location, whether training is in person or remote, its duration, the number of participants covered and any charges for additional attendees.

In your spreadsheet, list separately:

• fees paid to the franchisor for training;
• participants’ travel, accommodation and meals;
• wages and applicable employment-related costs for participating employees;
• costs of repeating the programme, making up missed sessions or taking additional assessments;
• any additional preparation needed to follow the programme.

Factor time away from the outlet into your planning. If the owner and manager need to travel at the same time, someone will have to oversee preparations for opening.

Do not assume every potential charge will apply: ask what triggers each one. The key is to understand your financial exposure before finalising the budget.

4. Understand the assessment and its implications for opening

Check whether there is a final assessment and whether opening depends on passing it. If it does, ask for objective criteria, details of who carries out the assessment and an explanation of the procedure if performance falls short.

Clarify the practical questions: will there be another attempt? How long will you have to wait? Who pays for the repeat training or assessment? Can the applicant nominate someone else to take responsibility for operations? What contractual consequences apply if approval is not granted?

Compare the answers with the COF, the agreement and its annexes. A condition that could prevent you from opening warrants legal review before signing, particularly if other financial commitments are already scheduled.

Also examine the timing. Training too early may make it harder to remember procedures; training too late may leave little time to address difficulties. Ask for a timetable that links training, outlet preparation and authorisation to open.

To check how well the training works in practice, ask franchisees who have recently completed the programme which tasks they could perform independently afterwards and which required further preparation. Seek concrete examples, not just a satisfaction rating.

Practical summary: before buying, obtain the syllabus, timetable, full budget and pass criteria. Proceed only when you are clear about what you will learn, how much you will spend and how training affects your ability to open the outlet.