Buying a franchise: agree the training content and responsibilities

When you join a franchise network, you also buy the opportunity to learn an established business model. However, a promise of comprehensive initial training alone does not tell you how well prepared you will be at launch or who will pay for additional training. Before signing a franchise agreement, establish what will be taught, to whom, when and on what terms. A good training plan connects the network’s operating methods with the practical steps involved in starting your own business.

1. Turn the training promise into a concrete plan

The franchising guidance on Finland’s Suomi.fi public services portal describes initial training, an introduction to the business concept and any necessary further training as part of the franchisor’s responsibilities. Even so, you need to establish the precise content of each network’s training separately. A reference to training in promotional material does not tell you how much practical experience you will gain or what skills you are expected to have already.

Before committing, ask for a written training programme. It should specify at least:

• who will be trained: the franchisee, any second person with management responsibility, and employees
• the tasks, systems and network quality standards to be taught
• the balance between face-to-face teaching, online learning and practical training
• the trainers, training venues and dates
• the tasks participants must be able to perform by the end of the training.

Compare the programme with your own experience. Customer service skills do not necessarily mean you can use the network’s ordering system, carry out end-of-day closing procedures or guide employees in line with the franchise concept. Ask for the programme to be supplemented wherever gaps in your skills could hinder your launch.

Also distinguish training in the franchise concept from your general responsibilities as a business owner. The network’s initial training does not, in itself, replace any qualifications required for the work or your own business’s obligations as an employer. Establish which skills and qualifications you must obtain yourself and which the network will provide. This prevents either party from assuming that the other will fill any gaps.

2. Calculate the full cost and time commitment

Training included in the initial franchise fee does not necessarily mean the training period is free of other costs. Travel, accommodation, employees’ wages and any additional training days may be payable by the franchisee. Ask for a breakdown of what is included and what is charged separately. Also record whether the quoted prices include VAT.

Give initial training its own cost line in your start-up budget. Alongside training fees, include participants’ travel, accommodation and wage costs. Allow for your own living expenses while you spend your working days learning but your business is not yet generating sales. This is not just about the course fee, but about the money and time committed to getting started.

Pay particular attention to the pricing of additional training. If the first period of practical training is not enough, you may need another training day or one-to-one guidance. Agree in advance when supplementary teaching is included in the package and when it will incur a charge. At the same time, ask for a procedure for approving paid additional work before it is carried out.

Align the training with your opening schedule. If the network postpones the training, your business may still incur costs. Set out how a new date will be agreed and how the consequences of any delay will be handled. Do not assume you will automatically receive compensation: check how responsibility is allocated in the agreement.

3. Agree on assessment and opening support

The network may require you to demonstrate that you have mastered the concept before you start trading. It is worth distinguishing this assessment from attendance at training: being present does not necessarily mean you have passed. As a buyer, you need to know the assessment criteria before committing to fees and an opening date.

Ask for written confirmation of who will assess your skills, how the assessment will be conducted and when you will receive the result. Also establish how any shortcomings will be documented, how they will be addressed and whether a reassessment will be arranged. If approval is a condition of opening, it should be based on requirements known in advance rather than left to open-ended discretion.

For example, using the till system may be straightforward in a calm training session but become difficult during the opening-day rush. This is why you should distinguish initial training from support during the actual opening. Ask whether a representative of the network will be on site, how long they will help and what tasks they will carry out. Providing a phone number is not the same as delivering promised on-site guidance.

Also confirm how you will stay in touch during the first few weeks of trading. Agree on a named contact or support channel, service hours and arrangements for urgent situations. For further training, record at least how it will be delivered, who will attend and who will bear the costs. This helps ensure that initial training is not an isolated event after which you are left to work everything out alone.

4. Include training obligations in the agreement

Finland has no specific franchising legislation, compulsory registration of franchise agreements or separate statutory franchise disclosure document in a prescribed format. There is therefore no minimum training package defined in franchise-specific legislation. The wording of the agreement is particularly important when determining what the network has promised to provide.

The contractual relationship is governed by, among other things, Finland’s Contracts Act and general principles of contract law. The Unfair Business Practices Act prohibits conduct contrary to good business practice, as well as the false or misleading statements covered by the Act. The Finnish Franchising Association’s Code of Ethics is a form of industry self-regulation, not legislation. It does not replace a clearly specified training commitment.

Attach the agreed training plan to the agreement and identify its version. Check that a concrete promise has not become merely an opportunity to receive support subject to availability. Also agree on how shortcomings in the training should be reported and the time frame within which the network must remedy them. Have any significant liability and compensation clauses reviewed by a lawyer familiar with franchising.

Practical checklist: accept the training package only once you know its content, total costs, pass criteria and opening support arrangements. A sound training commitment can be verified against specified tasks, a timetable and allocated responsibilities.