Franchising in Canada: structuring ongoing support

Turning a business into a franchise involves more than passing on a tried-and-tested method at the outset. You also need to support independent operators when difficulties arise. Before recruiting franchisees, define exactly what assistance you can provide after opening. This preparation protects your resources and helps build a franchise community based on realistic expectations.

1. Define what your support actually includes

The phrase ‘ongoing support’ sounds reassuring, but leaves plenty of room for interpretation. One franchisee may see it as occasional help; another may expect an adviser to be available at all times for every decision.

Draw up a simple list of the services you will offer after opening. For each service, specify its purpose, who is responsible, how it will be delivered and its limits. You might include:

• help with using shared tools;
• regular discussions to review operational difficulties;
• assistance with implementing marketing campaigns;
• guidance during an incident affecting business continuity;
• group sessions addressing recurring problems.

Then distinguish between three categories: services included as standard, additional support available for a fee, and matters requiring an external professional. For example, explaining a performance dashboard is not the same as providing personalised accounting advice.

A useful test: someone outside your business should be able to understand what they will receive without having to interpret a broad marketing promise.

2. Test your capacity before making promises

Your existing outlet provides a useful testing ground. Over a representative period, record the support requests that might come from a franchisee: a software problem, a product shortage, an unusual customer complaint or difficulty organising a promotion.

Measure the time spent on each request, the skills required and any involvement from external service providers. Include research, return calls and follow-up work: the initial conversation often accounts for only part of the workload.

This record will help you answer practical questions:

• Who provides the service when the person responsible is absent?
• Which requests can be handled collectively?
• Which incidents require a rapid response?
• At what workload will you need to expand the team?

Do not assume that a larger network will automatically reduce the support time needed per outlet. Requests may arrive all at once, particularly during a system-wide outage or a marketing launch.

Also distinguish between response times and resolution times. You can arrange for requests to be acknowledged promptly without guaranteeing that an external supplier will fix a fault immediately. Your commitments should reflect this distinction.

3. Align the agreement and pre-contractual disclosure

In Canada, franchise-specific requirements are governed at provincial level. The support you advertise must be consistent across your sales presentations, franchise agreement and, where required by law, disclosure document.

In New Brunswick, the Franchises Act and the Disclosure Document Regulation, Regulation 2010-92, govern pre-contractual disclosure, among other matters. The regulation requires a description of training or other assistance offered by the franchisor or an associate of the franchisor. It also requires details such as the location, whether participation is compulsory or optional, and who bears the costs where participation is compulsory.

Subject to applicable exceptions, the Act requires the disclosure document to be delivered at least 14 days before the prospective franchisee signs the franchise agreement or another agreement relating to the franchise, or pays any consideration, whichever occurs first. A promise of support should therefore not remain solely in a brochure without being reviewed as part of this disclosure process.

Quebec has no franchise-specific legislation imposing the same disclosure regime. The Civil Code of Québec, particularly its rules on contracts and good faith, still applies. This does not give franchisors licence to promise support they do not intend to provide.

Have your commitments reviewed for each province in which you plan to operate. Avoid presenting a general limitation clause as a way to override mandatory legal obligations.

4. Organise support that can be tracked and improved

Set up a main channel for routine requests and a separate procedure for emergencies. Define what counts as an emergency and whom to contact. Messages scattered across personal phones and informal conversations make reliable follow-up difficult.

For each request, record the reported problem, the agreed actions, the person responsible and the next follow-up date. Review recurring requests regularly: they may reveal an unsuitable tool or unclear instructions rather than a lack of effort by the franchisee.

Finally, ask franchisees how useful the support is, not just how quickly it arrives. A prompt response that cannot be put into practice solves nothing.

Key takeaway: before selling your first franchise, draw up an ongoing support specification, test the associated workload and have your contractual and pre-contractual commitments aligned.