Buying a franchise: agreeing training and support in Croatia

The promise of “comprehensive training and ongoing support” sounds reassuring, but it does not tell you who will help when an employee makes a mistake, the till stops working or you need to introduce a new service. When joining a franchise network in Croatia, it is important to turn that support into clear contractual obligations. This guide explains how to define the scope, costs and assessment criteria for training, and what to do if the agreed help fails to materialise.

1. Define initial training through specific tasks

Do not judge the quality of training solely by its duration. What matters more is what you and your employees will be able to do independently afterwards. The programme should suit the specific business format you are buying, rather than simply provide a general presentation of the brand.

Ask for the agreement or a schedule to specify:

• who is entitled and required to attend;
• the topics, delivery method and training location;
• the language of instruction and the availability of materials in a language participants understand;
• practical tasks and assessment methods;
• arrangements for further training if a participant does not meet the required standard;
• the timetable for pre-opening preparation and support during opening.

Distinguish between training for the owner and training for managers and employees. The owner needs business management knowledge, while employees must master specific working procedures. A single shared seminar may not meet both needs.

Make particular provision for who confirms readiness to open. If the franchisor can delay opening because training results are unsatisfactory, ask for criteria agreed in advance, written reasons and a reassessment procedure. This reduces the risk of paying staff before you can start trading.

2. Establish the full cost of training and knowledge transfer

A statement that training is “included in the initial fee” is not enough. It may cover only the trainer and materials, leaving you to pay for travel, accommodation, translation and participants’ wages. Draw up a separate training budget, distinct from your other investment costs.

For each item, record who pays, when the obligation arises and whether the price can change. Include the cost of covering absent employees and bringing trainers to your premises. If fees are charged according to the franchisor’s current price list, agree how that list can be amended and what advance notice must be given.

Clarify what happens when a trained manager leaves. Check whether you may train replacements yourself, whether you must send them to a training centre and whether each new participant incurs a charge. Staff turnover costs can easily be left out of the initial plan.

Also distinguish between mandatory training arising from changes to the franchise system and optional professional development. For mandatory changes, ask for a reasonable implementation period and a clear allocation of costs. An international training programme does not replace any training required under Croatian regulations for the particular role or business activity.

3. Turn ongoing support into a measurable service

After opening, support should have a named person responsible, a communication channel and agreed hours of availability. “Email support” means little if your outlet trades at weekends but replies arrive only at the start of the following week.

A schedule to the agreement can distinguish between critical issues that prevent trading and routine operational queries. For each category, specify the initial response time, escalation process and obligation to provide progress updates. A response time is not the same as a resolution time: for a complex problem, agreeing a temporary workaround is more useful than an unrealistic promise of an immediate fix.

For example, if access to the ordering system is interrupted, you need to know who to report the fault to, who will contact the external supplier and whether an approved alternative procedure is available. There should be no ambiguity about whether the franchisor or its technology partner is responsible.

Agree the scope of regular advisory visits too. Checking compliance with standards is not the same as helping the franchisee. A useful visit ends with written recommendations, named people responsible and implementation deadlines. Ask existing franchisees what this support looks like in practice, particularly when the business runs into difficulties.

4. Agree safeguards if support is not delivered

Croatia has no dedicated franchise law or specific statutory system of mandatory pre-contractual disclosure for franchises. Nor is entry in a dedicated franchise register a prerequisite for signing an agreement. The franchise register maintained by the Croatian Chamber of Economy (HGK) is an information source, not certification of training quality or a guarantee that contractual obligations will be fulfilled.

The contractual relationship is governed primarily by the Croatian Obligations Act (Zakon o obveznim odnosima), including its rules on good faith and fair dealing, performance of obligations and the consequences of breach of contract. Depending on the nature of the relationship, the Companies Act, the Trade Marks Act, and Croatian and EU competition rules may also be relevant. A code of ethics is no substitute for the law; check whether it binds the franchisor and whether it is incorporated into the agreement.

Work with a lawyer to set out the procedure for reporting an unfulfilled obligation, the period allowed to remedy the failure and the consequences of repeated failures to provide support. You may be able to negotiate additional training at no charge or an agreed reduction in the relevant fee. Do not assume that you can unilaterally suspend all payments: the remedies available depend on the agreement and the circumstances of the breach.

Practical takeaway: before signing, draw up a single schedule covering the training programme, all costs, support arrangements and the consequences of non-performance. A promise is worth more when both parties can clearly verify whether it has been kept.