Buying a franchise: confirm the franchisor’s training and support obligations

Franchising brings business owners together around a shared operating model that relies on expertise and effective collaboration. As a buyer, however, you cannot tell from a brochure’s promise of “comprehensive support” how much help your business will actually receive. Before signing the agreement, turn promises of training and support into written obligations that can be assessed. That way, you know what you are paying for and what you will need to arrange yourself.

1. Turn the support promise into a clear service specification

A franchise brand’s reputation tells you little about how new franchisees are trained. Ask for the training programme and support service specification to be attached to the agreement. These should set out the content, delivery method, person responsible and timing in relation to your business opening. A simple reference to the current operating manual can leave it unclear what the franchisor has committed to providing.

Divide support into three stages: preparation, opening and ongoing operations. During preparation, you may need training in systems, products and how to train your staff. At opening, having a representative from the franchisor on site may be crucial. Later, you may need advice on handling unusual situations or implementing changes to the franchise concept.

Put at least the following in writing:

• Who is entitled to training: the franchisee, the manager or all staff?
• What tasks should participants be able to perform after training?
• How much supervised practice and individual feedback will they receive?
• Who is responsible for practical support during the opening days?
• Which channels can you use to get help, and how quickly will you receive a response?

Distinguish response times from resolution times. A promise to acknowledge a request does not guarantee that a fault in the till system will be fixed quickly. Also establish which issues are the franchisor’s responsibility and which belong to an external service provider. You should not have to guess whom to contact while serving a customer.

2. Establish the true cost of training and the requirements for opening

Even if training is included in the initial franchise fee, you may still face substantial costs of your own. Check travel expenses, accommodation, wages during training, cover for absent staff and any fees charged by the training location. Ask separately whether there are charges for inducting new employees, repeat training or courses that become compulsory later.

Prepare a separate breakdown of training costs. For each item, note who pays, when payment is due and whether the cost is one-off or recurring. If the price list can be changed, check the notice period and the grounds for changes. An open-ended right to charge for “necessary additional support” makes costs difficult to forecast.

Check the practical requirements for attending training, too. Where is it held, what language are the materials in, and can any of it be completed remotely? If you need to spend several days in another town, this will affect both your personal commitments and preparations for the business. Make sure the timetable is workable before committing.

If opening depends on successfully completing the training, ask for the assessment criteria in advance. Agree who will assess competence, how any gaps will be addressed and what happens if opening is delayed. Distinguish delays caused by the franchisee from situations where the franchisor cannot deliver the promised training.

Do not treat attendance at training as automatic proof that you are ready to operate. Ask for a joint pre-opening check: do the systems work, can staff carry out the essential tasks, and has a support contact been named for the first few weeks?

3. Understand the role of the agreement and Finnish law

Finland has no dedicated franchise legislation, no statutory requirement for a standard-form pre-contractual disclosure document and no specific registration system for franchise agreements. There are therefore no franchise-specific rules setting a minimum training duration or defining the scope of the franchisor’s support services. This makes precise contractual wording particularly important for buyers.

The contractual relationship is governed, among other things, by Finland’s Contracts Act and general principles of contract law. Section 36 of the Contracts Act allows an unreasonable contractual term to be adjusted, but you should not rely on it as a remedy for a poorly defined support package. The Unfair Business Practices Act prohibits, for example, certain false or misleading statements in business. Competition legislation and the Trademarks Act also form part of the general legal framework governing franchise relationships.

The duty of loyalty between contracting parties and the proper disclosure of material information also matter during negotiations. Keep offers, presentations and written answers. Even so, make sure the key support promises are included in the agreement itself: otherwise, proving what was actually promised may be difficult later.

The European Code of Ethics for Franchising is a form of self-regulation, not Finnish law. Check whether the franchisor has committed to it and how that commitment is reflected in the agreement. Ethical principles are no substitute for a detailed training programme or support service specification. Nor does a franchise agreement between businesses generally benefit from consumer contract protections.

4. Test how well support works and agree how shortcomings will be handled

Speak to both recently established and longer-standing franchisees in the network. Ask for a concrete example of the last time they needed help: whom did they call, how quickly was the issue dealt with, and was there an extra charge? One person’s experience does not determine the quality of a franchise network, but recurring problems are worth investigating before you buy.

Ask the franchisor to explain its back-up arrangements for support. If all help depends on one person, their absence could leave you without advice. Find out how urgent operational problems are distinguished from routine business development queries, and who takes responsibility if the first contact cannot help.

Agree a written procedure for dealing with shortcomings in support: how to report them, who is responsible, the time allowed to put things right and how to escalate the matter to the franchisor’s management. Have a lawyer review the consequences of serious failures to meet obligations. Do not assume you can unilaterally stop paying franchise fees simply because you are dissatisfied with the service.

Practical summary: sign only when you know what you will be taught, who will help after opening, what the services cost and how shortcomings will be put right. In a good franchise network, collaboration is supported by clear responsibilities, not just promises.