Prospective Franchisee Visits When Franchising a Business in Colombia

A site visit can reveal what a sales presentation cannot: how the business works when orders, mistakes and decisions all arrive at once. If you plan to franchise your business in Colombia, prepare this experience without turning it into an artificial showcase. A well-organised visit helps both parties understand what is on offer and what running the business actually involves.

1. Define what the visit should establish

The aim is not to impress the prospective franchisee or show them the entire business in a single morning. It is to let them observe specific aspects of the model they might operate using their own resources.

Before scheduling the visit, prepare a short list of questions it should help answer:

• What tasks occupy the site manager during a typical working day?
• How are responsibilities divided among team members?
• What physical and technological resources support service delivery?
• Which situations require support from head office, and which are resolved locally?
• What differences will there be between this site and the franchise being offered?

This last point deserves particular attention. If you show a company-owned site that also serves as head office, a production kitchen or a warehouse, identify those functions. The prospective franchisee should not assume that their future outlet will have resources they will not receive.

Provide a simple agenda and make clear that the visit is for information only: it does not reserve a territory, grant rights to use the brand or constitute authorisation to operate.

2. Show representative operations, not a performance

Choose a site where visitors can observe normal operations. Do not bring in extra staff especially for the visit or remove awkward tasks to present an idealised picture. If the day is unusual because of a promotion, a seasonal event or an equipment breakdown, explain this.

Structure the tour around the actual workflow: preparation, customer service, delivery and completion of tasks. If a stage cannot be observed, explain it as such; do not imply that it has been demonstrated.

Appoint a host who knows the operation and can distinguish between a standard feature of the model and a practice specific to that site. The manager should also have a brief opportunity to explain their responsibilities without neglecting service or disclosing personal information about staff or customers.

Observing sales during a visit does not demonstrate profitability. A queue of customers reveals nothing about costs, discounts, waste or staffing expenses. Avoid extrapolating what is seen into future results. If financial questions arise, refer to information prepared in advance and placed in context, rather than making calculations on the spot at the till.

Do not turn the visitor into a trial worker either. They can learn about the business by observing and asking questions; handling products, equipment or orders introduces risks that require a separate assessment.

3. Set access boundaries and explain the Colombian framework

Before the tour, distinguish between three levels of information: what any customer can see, what may be shown to a prospective franchisee and what is reserved for a later stage. A sales visit does not require you to hand over recipes, passwords, customer databases or complete manuals.

If access to sensitive know-how is involved, consider a proportionate confidentiality agreement. Define what information it protects, how that information may be used and what restrictions apply to photographs or recordings. Do not use the agreement to prevent legitimate questions about the offer.

In Colombia, a franchise agreement is an atypical contract, meaning it is not governed by a comprehensive, dedicated set of contractual rules. The parties’ valid agreements and the general provisions of the Commercial Code and Civil Code apply. The duty of good faith during pre-contractual dealings, set out in Article 863 of the Commercial Code, also matters during these initial discussions.

Trade secrets are protected under Andean Community Decision 486; personal data is subject to Law 1581 of 2012. Use demonstration screens or anonymised information where necessary.

The draft decree published by Colombia’s Ministry of Trade, Industry and Tourism (MinCIT) in 2021 proposed a Franchise Offering Circular and a period of twenty working days. A draft does not, in itself, create a binding legal obligation: do not present that period as a Colombian legal requirement or the visit as a substitute for contractual information.

4. Finish with questions and verifiable differences

Set aside time for a final conversation away from the customer service area. Ask what the prospective franchisee has understood about the time and involvement they would need to commit, the resources required and the support offered. Clarify any expectations that do not match the model.

Afterwards, send a summary identifying the site visited, the site-specific features explained, the outstanding questions and who will answer them. Distinguish between observed facts, explanations and commitments actually made. Do not ask for a general declaration of satisfaction that appears to confirm aspects that were never shown.

Putting it into practice: prepare an agenda, identify how the site being visited differs from the proposed franchise and set access boundaries. The best visit is not the most impressive one, but the one that helps a prospective franchisee understand the operation without promising more than you can deliver.