Buying a Franchise: Secure Ongoing Support in Your Contract

A convincing concept alone does not make a viable franchise partnership. In day-to-day operations, what matters is whether the franchisor actually helps with specific issues: low demand, organisational bottlenecks or the introduction of new procedures. Before joining a franchise network and signing an agreement, you should therefore establish which ongoing advisory services are included in the agreed package. What counts is not the promise that “we are always here for you”, but a support agreement whose delivery can be checked.

1. Distinguish advice from training and your own responsibilities

Ongoing advice is different from introductory training or access to a knowledge base. Training provides knowledge. Advice helps you apply that knowledge to a specific business situation. A manual might explain how to draw up staff rotas, for example. Individual advice, by contrast, examines why scheduling at your location is not working despite your following the guidelines.

Ask the franchisor for a schedule of services provided after opening. This should make clear:

• Which operational matters qualify for individual support?
• Does head office analyse problems specific to your location, or merely offer general guidance?
• Are advisory sessions held remotely, on site or both?
• Which matters are expressly excluded and require external specialists?

The last question is particularly important in avoiding false expectations. Business support does not automatically include legal or tax advice. Staffing decisions and responsibility for the business’s financial performance also generally remain with you as a legally independent business owner.

An engaged franchise community can make it easier to share experiences. However, conversations with other franchisees are no substitute for the services expressly promised by head office.

2. Understand the legal framework

Germany has no dedicated franchise law. Franchise agreements combine different contractual elements; their legal assessment is governed primarily by the German Civil Code (BGB) and, depending on the circumstances, the German Commercial Code (HGB) and other general legislation. There is no specific government registration or approval scheme for franchise systems that guarantees a particular standard of support.

Nor is there a statutory schedule of advisory sessions to which every franchisee is automatically entitled. The specific support owed depends above all on the contract and how it is interpreted. General statements about partnership should therefore be backed up by clear descriptions of the services to be provided.

Standard contract terms are subject to sections 305–310 BGB. Section 307 BGB is particularly relevant where clauses are unclear or place the other party at an unreasonable disadvantage. A broad provision allowing the franchisor to restrict promised support at its discretion at any time should therefore be reviewed by a lawyer. However, not every provision allowing organisational flexibility is automatically invalid.

Duties to respect the other party’s rights and interests already apply during negotiations under sections 311(2) and 241(2) BGB. Statements about available advisers and the support actually on offer must therefore not be misleading. The code of ethics of the German Franchise Association also provides for ongoing support by its members. However, it is not a statutory franchise law and does not replace a precise contractual agreement.

3. Check the actual capacity to provide support

A well-written service description is of little use if head office does not have the staff to deliver it. Ask for an explanation of how support is organised. Find out who is responsible for what, how holiday and sickness cover work, and how new locations are accommodated within the existing support structure.

A single metric, such as the number of businesses assigned to each adviser, is not enough to assess capacity. Travel distances, the complexity of the concept and additional specialist departments all affect the workload involved. What matters more is whether the organisation can meet your likely support needs.

Ask for an anonymised sample support plan and speak to several existing franchisees. Useful, specific questions include:

• When did you last receive individual advice?
• Was an operational problem analysed, or were you simply referred to written materials?
• Did the discussion lead to an action plan and a follow-up meeting?
• Was support also available during financial difficulties?

Consider whether the answers match the sales materials. Other franchisees’ experiences do not guarantee service levels, but they can reveal differences between the support promised and what is delivered in practice.

4. Make services and procedures contractually binding

Where possible, agree an appendix to the contract setting out the topics covered, the scope of advice and how it will be delivered. It should clearly form part of the franchise agreement. Scheduled support meetings, a procedure for additional requests and clear responsibility for urgent issues are all useful.

Distinguish between acknowledgement of a request, an initial substantive response and resolution of the problem. A prompt acknowledgement alone does not provide practical help. Equally, it is not possible to promise a binding deadline for resolving every operational issue or to guarantee a financial outcome.

Also clarify which services are covered by the agreed fees. Additional on-site visits, external specialists or travel expenses should not result in unexpected charges after you have requested help. Any chargeable additional services should ideally require your prior approval.

Finally, record whom you can contact if a request goes unanswered. Documenting issues raised, agreed actions and follow-up discussions creates a clear record of the working relationship without turning every advisory session into a formal dispute.

Practical conclusion: Before buying, assess three things together: the scope of advice promised, the actual capacity to provide support and the binding procedure for handling requests. Have key commitments included in the contract rather than relying solely on how responsive the franchisor is during sales discussions.