Buying a franchise: clarify your right to ongoing operational support

When you buy a franchise, you join a franchise network, but you still run your own business. It is therefore important to know what help you can actually count on after opening. Phrases such as ‘ongoing advice’ and ‘access to the network’s expertise’ say little about who will help, when that help will arrive or what it will cost. Examine operational support as a specific service before you sign.

1. Distinguish between belonging to a network and receiving an agreed service

A good franchise network can offer access to shared experience, common working methods and colleagues who understand your challenges. This is valuable, but informal help from other franchisees is not the same as an obligation on the franchisor.

Denmark has no dedicated franchise legislation, no specific statutory franchise disclosure requirements and no compulsory registration of franchise agreements. Nor is there a specific franchise rule that automatically guarantees you a set number of advisory hours or a fixed response time.

Franchise agreements are assessed primarily under the Danish Contracts Act and general principles of contract law. Other legislation, including the Danish Marketing Practices Act and Competition Act, may also be relevant. General duties of loyalty and disclosure may matter in some circumstances if material information is withheld or presented misleadingly. However, they are no substitute for a precise description of the support provided.

Start by separating three things: what does the franchisor provide? What do external partners deliver? And what depends solely on franchisees voluntarily sharing their experience? Only then can you assess where you will need to pay for help yourself.

2. Describe the help you need in terms of day-to-day operations

Ask for a description of support during normal trading, not just during set-up and initial training. Use specific situations that could arise in the business you are considering buying.

For example, your staff rota might not be working, a local campaign might generate few enquiries, or employees might be unsure about a key working procedure. Who can you contact, and what help can they provide?

Draw up a simple overview covering the following points for each support service:

• Scope: Which questions and tasks does the support cover?
• Delivery: Will you receive a telephone consultation, a written recommendation or a visit?
• Frequency: Is support ongoing, periodic or available only on separate request?
• Responsibility: Which role or team within the franchisor’s organisation handles the task?
• Limits: Which tasks must you handle yourself or seek external advice on?

Also distinguish between access to resources and personal advice. An operations manual can be useful without resolving a specific problem. Equally, an annual network meeting does not necessarily provide individual advice on your outlet.

Pay particular attention to the boundary between operational support and specialist advice. Help with the network’s staffing procedures, for example, does not necessarily include legal advice on a particular dismissal. You should know when you need to contact a lawyer, accountant or other adviser yourself.

3. Check availability and capacity

A support service has limited value if you cannot access it when you need it. Ask the franchisor to explain how enquiries are received, allocated and followed up.

Ask specifically about support hours, contact channels and cover during holidays or sickness. If your outlet operates in the evenings or at weekends, do not assume that head office will be available at the same times.

Distinguish between a response time and a resolution time. Confirmation that your message has been received does not mean you have received useful help. It is worth specifying in the agreement when you will receive an initial substantive response and how the matter will be followed up. Not every problem can be resolved within a fixed deadline.

Also examine the capacity behind the promise. Which teams provide support, how are simultaneous enquiries prioritised, and how is demand from multiple outlets across the network managed? Consider asking for an anonymised account of a typical support case. This gives you a more concrete basis for assessment than a general presentation about head office.

4. Agree on costs and how shortcomings will be addressed

Make sure it is clearly stated which support services are included in your ongoing fees and which are charged separately. Also clarify any costs for travel, accommodation and external specialists. Additional advice should not be commissioned on unclear financial terms.

Ask for a procedure under which you approve the price and scope before any chargeable work begins. If an initial conversation is included but subsequent work costs extra, that boundary should be clear.

Also agree on how failures to provide support will be handled: who receives your written enquiry, to whom can the matter be escalated, and how will you agree on a follow-up plan? Have a lawyer assess what rights the agreement gives you if a material support obligation is not met. Do not assume that you can automatically withhold royalties or demand a fee reduction.

Practical rule of thumb: Do not buy on the strength of a promise of help alone. Get the service, availability, price and follow-up arrangements set out clearly, so you know what the franchise network provides and what you must arrange yourself.