Handling Customer Complaints When Franchising in Colombia

Before franchising a business in Colombia, it is worth testing more than just sales: what happens when a customer makes a claim under a guarantee or complains about a service? A shared brand creates shared expectations, even when each outlet is run by an independent business owner. Preparing a customer complaints procedure allows you to grow a franchise network without burdening consumers with internal disputes between franchisor and franchisee.

1. Distinguish legal obligations from internal agreements

In Colombia, a franchise agreement is an ‘atypical’ contract: there is no specific, comprehensive contractual framework governing it. It is governed by the agreed terms, the general provisions of the Commercial Code and Civil Code, and other applicable legislation. This contractual freedom does not allow the parties to disregard consumer rights.

Law 1480 of 2011, Colombia’s Consumer Protection Statute, is central to dealings with end customers. Among other matters, it regulates product quality, fitness for purpose and safety, information, advertising and the statutory guarantee. It also covers services, subject to the relevant specific provisions.

Under the statutory guarantee, producers and suppliers are jointly and severally liable to consumers. It is therefore not enough to state that each franchisee is responsible for their own outlet: you must establish who actually acts as the producer, supplier or retailer in each transaction. A franchisor does not automatically assume all these roles simply by granting a franchise, but nor is it absolved of liability merely because the contract declares the parties independent.

Before you proceed: seek a legal review of the actual manufacturing, import, supply, sales and service delivery chain. The aim is to identify obligations, not to draft a clause to evade them.

2. Map the complaints process before recruiting franchisees

Use situations from the existing business to design the process: a defective product, an incomplete service, a disputed charge or an offer that the customer understood differently. Each case should have someone responsible for receiving it, someone responsible for assessing it and a clear route to resolution.

The procedure should specify:

• Contact channels: in-person assistance, email and any other channels the business can manage effectively.
• Information required: purchase details, an account of the problem and relevant supporting evidence, without demanding unnecessary documents.
• Allocation: who handles the complaint when the purchase was made at another outlet or through a centralised channel.
• Escalation: when head office, the supplier or a legal adviser should become involved.
• Response and closure: who communicates the decision and how implementation of the remedy is documented.

Do not confuse internal handling targets with statutory deadlines. Under Law 1480, a consumer complaint submitted directly to the business must receive a response within fifteen working days of receipt. The procedure must enable a timely response with the relevant supporting evidence; an automated acknowledgement is not a substitute for that response.

Avoid making customers work out who runs each outlet. Internal coordination should make assistance easier, not become a barrier.

3. Separate the customer’s remedy from the allocation of costs

A frequent source of friction is deciding who pays for a repair, replacement or refund where one is due. Before offering the franchise, define how these costs will be handled between the parties without improperly making the consumer’s rights conditional on that process.

Prepare a table with three columns: situation, party responsible for handling it and internal reimbursement mechanism. For example, a manufacturing defect may require coordination with the producer, while an error in service delivery may need to be corrected by the outlet. The final allocation of responsibility will depend on the facts and the applicable legal obligations.

Also distinguish the statutory guarantee from voluntary commercial policies. Offering exchanges because a customer changes their mind or prefers another item is not the same as addressing a defect. If the brand advertises additional benefits, it must set out their conditions clearly and ensure that the participating outlets can honour them.

The contract can allocate costs, establish authorisation requirements and regulate reimbursements. The operating procedure should explain how to put those rules into practice. Neither should present head office approval as a reason to suspend compliance with legal obligations.

4. Test the system and use complaints to drive improvements

Trial the procedure in the existing business before introducing it across the franchise network. Simulate a complaint received by an outlet other than the one involved, another relating to an online sale and one revealing a potential safety risk.

Check whether the team identifies the responsible party, retains evidence and communicates a clear response. Potential safety risks require an urgent escalation route and an assessment of the relevant legal measures, not simply commercial compensation.

Record dates, causes, remedies and recurring issues. Review this data to improve products, instructions and processes, while avoiding the collection of unnecessary personal information.

Practical takeaway: before recruiting franchisees, test the entire complaints process: receipt, assessment, response and resolution. Then agree how costs will be allocated, without allowing that discussion to become an obstacle for the customer.