Franchising in Denmark: Make Training a Requirement Before Opening

When you turn your existing business into a franchise network, others need to be able to deliver the quality your customers associate with you. That takes more than shadowing an experienced colleague and signing to confirm that the manual has been read. A clear training programme, with documented learning objectives and a fair sign-off process before opening, makes expectations clear for both you and the franchisee.

1. Turn experience into demonstrable skills

Start with the tasks where mistakes could harm customers, finances or confidence in the business concept. The aim is not to cover everything you know. It is to ensure that the franchisee can perform the essential tasks without you standing beside them.

Select skills in areas such as delivery, quality assurance, staffing and day-to-day financial management. Then describe what satisfactory performance looks like. “Understands the till system” is vague. “Can complete a sale, correct an error and reconcile the day’s payments” can actually be assessed.

Create a simple checklist for each skill:

• Task: What must the participant be able to do?
• Quality requirements: Which steps must be followed and which results achieved?
• Evidence: How will the participant demonstrate their ability?
• Responsibility: Who will provide training, assess performance and follow up?

Distinguish between critical errors and ordinary beginner’s mistakes. Hesitant wording when speaking to a customer may call for feedback. Failure to meet a safety requirement may mean repeating the task under supervision. The criteria should be known in advance, so sign-off does not depend on the trainer’s gut feeling.

2. Build the programme around day-to-day operations

Divide training into preparation, practical training and independent task completion. Theory can explain the background, but should not stand alone when the work at the outlet is practical.

Use your existing business as a training site where it is safe and appropriate to do so. Let the participant observe a task, carry it out with guidance and finally complete it independently. The purpose is to assess the person’s competence, not to test whether the business concept itself works.

Also practise situations where the day does not go to plan: an employee calls in sick, a delivery fails to arrive or the payment system goes down. The franchisee needs to recognise what can be resolved locally and when to involve the franchisor or a specialist.

Tailor the programme to each role. The owner may need to read operational reports and plan staffing, while an employee may primarily need to master customer service and specific working procedures. If the franchisee will not manage the business day to day, the future manager should take part in the training.

Also plan who will train staff recruited later. Being able to perform a task is not the same as being able to teach it. Ask the future manager to demonstrate a short training session, followed by a check that the learner has understood.

3. Agree the sign-off process before either party commits

Denmark has no dedicated franchise legislation and no specific registration scheme for franchisors or franchise agreements. Nor is there a statutory training programme or a government requirement for franchise approval before opening. Internal sign-off is therefore a quality requirement agreed between you, not official authorisation.

Franchise agreements are governed by the Danish Contracts Act and general principles of contract law. Following a case-specific assessment, section 36 of the Act may be used to amend or set aside unreasonable terms. The Danish Marketing Practices Act and competition rules also apply, among other legislation, while the nature of the business determines which further rules are relevant.

There is no franchise-specific statutory pre-contract disclosure package. However, general principles of contract law may create a duty to disclose material information. A demanding training programme that could delay opening should therefore be explained clearly before the agreement is signed.

Make sure the agreement answers these questions:

• Who must attend, and which requirements must they meet?
• Who pays for training, travel, accommodation and any repeat sessions?
• Who makes the sign-off decision, and on what basis?
• What happens to the opening date if the requirements are not met?
• What options are available for additional training and reassessment?

Have a legal adviser review the consequences of failing to secure sign-off. Avoid vague terms that allow the franchisor to reject a participant at their sole discretion after substantial investments have been made.

4. Document the outcome and follow up after opening

Finish with a practical assessment that reflects a real working day. Apply the same criteria to everyone, but tailor the training to each person’s experience. A certificate of attendance does not, in itself, demonstrate competence.

Record which tasks have been passed, which shortcomings have been observed and what follow-up has been agreed. Give the participant a copy and an opportunity to comment on the assessment. Retain only relevant personal data, restrict access and set an appropriate deletion deadline in line with data protection rules.

Agree a follow-up review after opening to check whether the skills hold up under real operational pressure. Use what you learn to improve training for the next participant joining the franchise network.

Practical takeaway: Start with a short list of critical skills. Describe how they will be demonstrated, and agree the consequences of failing to secure sign-off before anyone commits to an opening date.