Buying a Franchise: Set Clear Requirements for Training and Support

When you buy a franchise, you join a network where shared knowledge and ongoing help can make a real difference to day-to-day operations. But ‘comprehensive training’ and ‘close support’ are not specific commitments. Before choosing a brand, find out what the help actually involves, who provides it and how your expectations will translate into clear contractual terms.

1. Know the difference between legal requirements and promises

Denmark has no specific franchise law. Nor is there a franchise-specific obligation to provide a standardised disclosure document before signing an agreement or to register the franchise agreement with an authority. General business registration requirements still apply, however.

Franchise agreements are governed primarily by the Danish Contracts Act and general principles of contract law. Freedom of contract is the starting point, but legislation including the Danish Marketing Practices Act and Competition Act may also set boundaries for the relationship. The absence of specific disclosure requirements does not mean that franchisors are free to provide misleading information.

There is no statutory standard package entitling you to a set number of training days, consultant visits or hours of telephone support. You therefore need to ensure that the particular support you are relying on when making your purchase is clearly set out in the agreement and its schedules.

Franchising codes of ethics can supplement legislation, but they are not themselves Danish law. If the franchisor refers to a code, ask for the specific version and establish whether, and how, it creates obligations towards you.

Keep presentations, emails and written answers about training and support. Then ask for the key promises to be incorporated into the contract. This is safer than arguing later about the significance of a sales conversation.

2. Assess training as a specific service

Start with the gaps in your own skills. Do you have experience managing staff but not using the franchise’s ordering system? Or do you know the product but lack established routines for staff rotas and quality control? A strong brand is not necessarily the right choice if its training does not meet your needs.

Ask for a training plan showing:

• Content: Which tasks and systems will you learn to handle?
• Participants: Is the programme just for you, or does it also cover your manager and staff?
• Scope and format: How much consists of practical training, taught sessions and self-study?
• Trainers: Who delivers the training, and what operational experience do they have?
• Completion: How will your readiness to open be assessed?

Also find out what happens if you or an employee fail to meet the requirements after the initial programme. Is additional training available, who pays for it, and could the opening be delayed? Clarify these points before planning staffing and setting an opening date.

Consider asking to see an extract from the operations manual or to observe relevant training, subject to appropriate confidentiality arrangements. The aim is not to obtain all the franchise’s know-how free of charge, but to assess the quality and usefulness of the material.

Agree separately on what on-site help will be available around the opening. Having an experienced consultant in your shop and having access to a video guide are two very different forms of support.

3. Check how day-to-day support works in practice

Support needs to work beyond opening day. Ask the franchisor to explain what help would be available in specific situations: the till system fails on a Saturday, a key employee resigns, or recurring quality problems arise.

Ask which contact channel you should use, when it is staffed and who takes over if the first person you contact cannot help. Distinguish between response time and resolution time. A prompt acknowledgement of your enquiry does not mean that operations will be restored quickly.

Speak to both new and experienced franchisees, ideally running businesses of different sizes and in different locations. Ask for concrete examples rather than an overall satisfaction rating:

• What help did you need most after opening?
• What happened during your most recent serious operational problem?
• What knowledge did you have to find elsewhere yourself?
• Do the agreed follow-up visits actually take place?

Sharing experience within the network can be valuable, but it should not mask limitations in the franchisor’s own support. Establish what head office provides and what depends entirely on other franchisees helping voluntarily.

4. Put responsibilities and follow-up arrangements in the agreement

Set out the agreed services in a dated schedule to the agreement. Describe training, opening support, ongoing advice and updates to training materials separately. Include your own obligations too, such as attending training and supplying information on time.

Avoid wording such as ‘support as needed’ unless it is clear who decides what is needed. Instead, agree on regular points of contact, relevant service targets and a procedure for urgent issues. If support is described in the operations manual, check whether the franchisor can change it unilaterally and which document takes precedence if there is a conflict.

Ask an adviser to review your options if essential support is not provided. The agreement should set out a written complaints procedure, a deadline for putting matters right and a clear route for escalating the matter to management. Do not withhold payment on your own initiative without legal advice.

Practical takeaway: Do not choose a brand solely on its promise of help. Ask for evidence, check the support with existing franchisees and get the essential commitments in writing before you sign.