Buying a Franchise: Secure Binding Commitments to Ongoing Training

A good induction is not enough to sustain a long-term franchise partnership. New products, changing procedures and staff turnover make ongoing training essential. Before joining a franchise network, you should therefore establish what training the franchisor is actually obliged to provide after opening. What matters is not the size of its learning platform, but whether the training will support your business over the long term and remain reliably budgetable.

1. Check that ongoing training is a specific contractual commitment

“Regular training” sounds reassuring, but leaves plenty of questions unanswered. Does it mean an annual seminar, freely accessible training videos or tailored support with operational problems? Review the commitments in the franchise agreement alongside its schedules. A sales presentation is no substitute for a clear description of the services to be provided.

Ask to see a sample ongoing training plan for an established franchise business. It should show which topics are covered regularly and which training is provided only in particular circumstances. Distinguish between specialist training, business management support and instruction on new franchise system standards.

Include these points on your checklist:

• Audience: Is training available only to you as the owner, or also to managers and staff?
• Scope: Is there a minimum number of sessions, teaching hours or available courses?
• Format: Is training delivered in person, online or through visits to your business?
• Access: How quickly can new staff access the training they need?
• Responsibility: Who organises sessions, provides materials and answers follow-up questions?

Make sure you distinguish compulsory training from optional courses. For both, it should be clear what the franchisor provides and what participation or input is expected from you.

2. Understand the legal framework

Germany has no dedicated franchise law. Nor is there a statutory list of ongoing training services that franchisors must provide. Franchise agreements combine elements of different contract types. They are governed primarily by the general provisions of the German Civil Code (BGB), supplemented, depending on their terms, by the German Commercial Code (HGB) and other relevant areas of law.

Sections 305 to 310 BGB apply to standard contract terms, subject to the specific rules set out there for business-to-business transactions. Section 307 BGB, in particular, requires transparency and restricts terms that place the other party at an unreasonable disadvantage. However, this does not automatically turn a vague training commitment into the comprehensive support package you would like. Precise agreements remain essential.

Duties to consider the other party’s interests and disclose relevant information already arise during contract negotiations under sections 311(2) and 241(2) BGB. Specific statements about the ongoing training available must not be misleading. Have important statements confirmed in writing and check them against the draft agreement.

The European Code of Ethics for Franchising, which also serves as the code of ethics for members of the German Franchise Association, provides for initial training and ongoing support. However, it is not legislation and does not replace a specific agreement on the services to be delivered. Association membership alone guarantees neither a particular number of training days nor free ongoing training.

3. Budget for training costs and business disruption

“Training included” does not necessarily mean that attending will involve no additional costs. Course fees, travel expenses and time away from the business are often dealt with separately. Request a breakdown of the services included and those charged for separately.

Check in particular whether fees are charged per business, per participant or per course. Also ask about charges for assessments, repeat sessions, learning materials and access to digital platforms. If staff turnover is high, whether you have to pay for each new user account can make a significant difference.

Alongside direct expenses, budget for staff time and cover. A compulsory course lasting several days can create additional staffing costs, even if the course itself is already covered by the franchise fee.

Three scenarios are useful for budgeting: a typical year’s ongoing training needs, the induction of a new manager and the introduction of a new procedure across the franchise network. For each scenario, ask what support is available and who pays for what. This will reveal differences between franchise offers without relying solely on marketing promises.

4. Put practical safeguards in place for access and entitlements

A contractual right to training is of little use if the next available place comes after the deadline for introducing a compulsory new procedure. Agree reasonable lead times and establish what alternatives will be offered if sessions are cancelled or fully booked. These might include extra dates, online attendance or individual instruction.

The sequence is particularly important when new requirements are introduced: if your team needs additional knowledge to meet them, the necessary training should take place in good time before implementation. Also record whom you can contact about missing materials or subject-specific questions.

If promised services are not delivered, document what is missing and make a specific request for the problem to be put right. The remedies available will depend on the agreement, the breach and the individual circumstances. Do not unilaterally reduce franchise fees or stop making payments without a legal review. Before joining, have a suitably qualified adviser check whether your training rights are drafted in enforceable terms.

Practical takeaway: Before signing, request a written summary of the training provided, who is entitled to attend, additional costs and delivery timescales. Only then can ongoing training become a predictable part of your franchise partnership.