Buying a franchise: how to agree operational support

When the till stops working or a problem arises that the manual does not cover, the value of a franchise also depends on access to practical help. Before buying a franchise in Croatia, check what the promise of ‘ongoing support’ means once you have opened. A successful franchise relationship requires a clear division of responsibilities, not just a good rapport with the person presenting the business opportunity.

1. Turn promised support into a list of services

The term ‘operational support’ can cover advice on day-to-day operations, technical assistance, site visits or help with implementing standards. Without a defined scope, however, it is unclear what the franchisor must do and what it provides only when it has spare capacity.

Ask for a schedule to the agreement listing the services available after opening. For each service, specify who provides it, through which channel, in which language and during what hours. Pay particular attention to availability at weekends and on public holidays if these account for a significant share of your sales.

The list could distinguish between:

• Emergency technical assistance: problems with a system essential to the outlet’s normal operation.
• Routine business advice: guidance on procedures, organising work and implementing standards.
• On-site support: scheduled visits and assistance when remote communication is not enough.
• Specialist assistance: matters the franchisor refers to an external provider.

For an international brand, check whether enquiries are handled by the Croatian team, a regional office or head office. Time differences and language can significantly affect how useful the support is in practice. Ask for a role-based point of contact and a back-up, rather than just the name of one person who might leave the company.

2. Distinguish acknowledgement from an actual solution

An obligation to respond is not the same as an obligation to resolve a problem. An automated message confirming receipt of a support request is of little help if your business is still at a standstill.

Propose that the agreement distinguish between acknowledgement of receipt, the start of work by a suitably qualified person and a target resolution time. Timescales should reflect the type of problem and the franchisor’s realistic capabilities. There is no single deadline suitable for every franchise.

Agree priority levels for support requests as well. A complete shutdown should not have the same priority as a question about a shelf display. For the most serious problems, ask for a temporary workaround that allows operations to continue, where technically feasible and permitted by applicable regulations.

Useful questions to raise during negotiations include:

• When does the response period begin, and does it run outside working hours?
• What information must you provide for a support request to be considered complete?
• Who is the problem escalated to if the first point of contact cannot help?
• How will you receive progress updates?

Ask the franchisor to explain how it would handle a specific scenario, such as losing access to a system during a Saturday shift. This will reveal gaps more readily than reading a general promise of availability.

3. Check support capacity and costs

Before signing, ask for details of the support team and how requests are allocated. Headcount alone is not enough: responsibilities, cover during absences and access to specialists who can address your problem all matter.

If possible, ask for an anonymised example of a report on a resolved support request. The aim is not to access another business’s data, but to check whether there is a structured process for tracking problems. Speaking to an existing franchisee can also help establish whether actual availability matches the service presented to you.

Clearly distinguish support included in the recurring fee from services charged separately. Check whether charges apply to site visits, travel expenses, work outside agreed hours and assistance from external specialists. For additional services, propose a requirement for a written estimate and approval of the cost in advance.

An external IT provider deserves particular attention. Establish whether you contract directly with it or whether the franchisor arranges assistance. The agreement should specify who receives support requests, who coordinates their resolution and who handles complaints. Avoid a situation in which each party simply refers you to the other.

4. Agree the consequences of failures to provide support

Croatia has no franchise-specific legislation, no specific mandatory standardised pre-contractual franchise disclosure document and no dedicated system for registering franchise offers. A franchise agreement is an ‘innominate contract’ — one not specifically defined as a separate contract type — governed by Croatia’s Civil Obligations Act. That Act and the specific terms agreed are therefore important when it comes to non-performance, liability for damages and termination.

Depending on the business, the Trade Act, the Competition Act and other relevant regulations also apply. The European Code of Ethics for Franchising is a self-regulatory standard for the franchise community, not Croatian legislation that automatically determines the scope of your support.

Discuss with a lawyer the consequences of repeated failures to provide support: a written improvement plan, an agreed fee reduction or other appropriate rights. Do not assume that dissatisfaction entitles you to stop paying all fees unilaterally; doing so could put you in breach of the agreement.

Keep records of support requests, responses, the duration of interruptions and costs incurred. These records make it easier both to resolve problems and to demonstrate what actually happened.

Practical takeaway: before signing, ask for a clear operational support schedule. It should set out who provides help, when they act, what you pay and what rights you have if the agreed assistance is not provided.