Opening your first franchise: setting deadlines and managing delays

A successful company-owned outlet does not guarantee a smooth opening for your first franchise. Between signing the agreement and welcoming customers, building work, deliveries, training and system setup all need to come together. If everyone is working towards a different date, delays can quickly turn into unplanned costs. To build a healthy franchise network, establish not only a target date but also a clear procedure for when opening on schedule is no longer possible.

1. Build a timetable around dependencies, not wishful thinking

Work backwards from the planned opening date. List the tasks that must be completed before others can begin: gaining access to the premises, installing equipment, getting the till system up and running, receiving stock and giving the team practical training, for example. Each task needs a named person responsible, a deadline and a verifiable outcome.

Distinguish between the target opening date and binding deadlines for individual obligations. A marketing ambition such as “we’ll open in spring” is not a sufficient basis for ordering stock or determining whether either party has failed to meet an obligation.

Create a simple record for each milestone:

• What exactly must be completed, and how will completion be demonstrated?
• Who is responsible for the task, and who needs to provide support?
• Which earlier step does the task depend on?
• How would a delay affect subsequent work?
• What is the latest point at which a dependent order can be rescheduled without additional costs?

Check the timetable against your experience of running your own outlet. Do not simply copy the times you actually achieved, however: the founder may have resolved many issues through personal contacts that a future franchisee will not have. Allow contingency time for specific risks rather than applying a standard number of extra days to every outlet.

2. Separate contractual obligations from the working plan

The Czech Republic has no specific franchise law and no requirement to register franchise agreements. A franchise agreement is typically concluded as an unnamed contract under Section 1746(2) of Act No. 89/2012 Coll., the Civil Code. General rules of civil law govern performance, delays and any compensation for loss. These contractual arrangements do not replace the regulatory requirements for starting operations.

The agreement should therefore set out, in particular, each party’s binding obligations, how the opening date will be determined and the procedure for changing it. The working timetable can contain more detailed organisational steps. It must be clear, however, whether an update merely reschedules a planning meeting or also changes a contractual deadline. A routine edit to a shared spreadsheet should not inadvertently alter responsibility for a delay.

Also clarify when each time period starts. “System delivery within one month” is incomplete unless it specifies whether that month runs from signing the agreement, paying the deposit or supplying the technical information.

Pay particular attention to promises made by the franchisor. If an external supplier carries out the installation, specify who contracts with that supplier and who coordinates any complaint or revised installation date. The franchisee should not discover only when a problem arises that a promise to “arrange installation” meant nothing more than passing on a contact’s details.

3. Agree in advance how delays and their costs will be handled

Simply stating that the parties will cooperate is not enough. Establish a specific notification procedure: who must be told about a potential delay, what information the notice must contain and who will propose a revised plan. Notice should be given as soon as the risk is identified, not only once the deadline has been missed.

It is useful to distinguish between three situations: a delay caused by the franchisor, a delay caused by the franchisee and an obstacle outside either party’s direct control. This distinction helps with coordination but does not, in itself, determine legal liability. Liability must be assessed against the agreement and the circumstances; a supplier’s failure to deliver, for example, does not automatically remove liability.

Review in advance the costs that arise even if the outlet has not opened: rent, wages for a team ready to start work, equipment storage, repeat deliveries and advertising already booked. Clarify who approves expenditure to mitigate the consequences and what supporting evidence is required. Have any potential claims for reimbursement reviewed legally to ensure they are consistent with the agreement.

It is equally important to specify whether, and from when, ongoing fees to the franchisor are charged during a postponement. Define the trigger clearly: signing the agreement, making a service available and actually opening the outlet are not the same thing.

4. Introduce an opening decision and a final deadline

Schedule a joint readiness check before launch. Its purpose is not to reassess the entire concept, but to confirm that the completed steps genuinely allow normal operations to begin. The outcome should be a brief written record: open, open once specified conditions have been met, or postpone.

Distinguish between defects that prevent operations and minor outstanding work. The absence of a functioning payment system is more serious than a delayed decorative feature. For each outstanding item, specify the remedy, the person responsible and the deadline. Approval from the franchisor does not replace the operator’s statutory obligations.

The agreement should also address the latest permitted opening date and what happens if it is missed: a fresh assessment of the project, a postponement agreed in writing or, where appropriate, the option to end the relationship on predefined terms. Remember to clarify how goods and services already supplied, and orders already placed, will be settled.

Practical takeaway: Before signing your first franchise agreement, prepare a single shared timetable and work through a hypothetical delay to a key delivery. If you cannot identify who takes action, what gets rescheduled and who handles the resulting costs, your opening arrangements are not yet ready.