Buying a franchise: secure training and support in your contract

Joining a franchise network means expecting more than a business concept: knowledge, guidance and help with problems should make it easier to get started. Yet there is often a significant gap between the promise of “comprehensive support” in a sales pitch and a legally enforceable obligation. Before buying a franchise, check exactly what support is promised, what it costs and how it is secured in the contract.

1. Turn marketing promises into a detailed schedule of services

Start with a simple comparison: what does the presentation promise, what does the training programme describe and what does the draft contract say? Phrases such as “intensive induction” or “ongoing advice” reveal little about the scope or quality of the support.

Ask for a written schedule of services. At a minimum, it should answer these questions:

• Initial training: What topics are covered, how long does it last and who can attend?
• Practical training: Is there training at an existing business, with designated contacts?
• Opening support: Who provides on-site assistance, with which tasks and for how long?
• Ongoing support: Are regular site visits included, or is advice available only on request?
• Further training: Which courses are compulsory, which are optional and which cost extra?

Also ask about prerequisites: must you recruit staff before training starts? Do you need to pass an assessment before you can open? What happens if training has to be repeated?

Not every franchise system needs the same level of support. What matters is whether the provision addresses your particular knowledge gaps. Industry experience, for example, does not automatically mean you understand workforce planning or the business software used by the franchise.

2. Check whether the support works in practice

A convincing training plan is not, in itself, proof that the franchisor’s head office can deliver. Ask who provides the services, what experience they have and how cover is arranged when they are unavailable. Find out how support capacity will increase as the number of franchisees grows.

Ask to see a training plan and selected chapters of the operations manual. Confidential know-how is entitled to protection; you should not assume that the full manual will be handed over before the contract is signed. Even so, a supervised review under a confidentiality agreement can show whether the content is up to date, clear and useful in practice.

Speak to several existing franchisees, ideally including both recent starters and longer-established operators. Ask specific questions:

• What help was particularly useful during the first few weeks of trading?
• Which promised support arrived late or not at all?
• How are urgent technical or operational problems handled?
• Which training courses involved additional charges?

Record examples rather than general expressions of satisfaction. “When the till stopped working, we had a solution that same day” tells you more than “Head office is easy to contact”. Individual experiences are still only snapshots, however, and should be checked against what others tell you.

3. Understand the German legal framework

Germany has no dedicated franchise law, no government franchise register and no legally prescribed, standardised disclosure document. A franchise agreement combines elements of several types of contract. The main legislation governing it is the German Civil Code (Bürgerliches Gesetzbuch, or BGB) and, where applicable, the German Commercial Code (Handelsgesetzbuch, or HGB). Other general legal provisions may also apply, depending on the contract’s content.

Pre-contractual duties of disclosure and regard for the other party’s interests arise during negotiations, particularly under sections 311(2) and 241(2) BGB, as well as the principle of good faith under section 242 BGB. Material information about promised training and support must not be false or misleading. Which information must be disclosed without being requested depends on the circumstances of the case.

There is no general statutory two-week disclosure period when buying a franchise in Germany. Nevertheless, you need sufficient time to review the documents relevant to your decision before signing a binding agreement.

Standard contract terms are also subject to review under sections 305 onwards of the BGB, with specific rules applying to business-to-business transactions. Clauses allowing the franchisor to change support services unilaterally may raise legal concerns. Membership of a trade association or adherence to a voluntary code of conduct is no substitute for this review or for binding commitments to provide services.

4. Make services and additional costs contractually binding

Have important commitments included in the contract or in a schedule of services expressly incorporated into it. The documentation should set out the scope, dates, responsible teams or individuals and, where appropriate, cover arrangements. Agreed response times can be useful for urgent enquiries, although a response deadline does not guarantee an immediate solution.

Clarify which document takes precedence if the contract, schedules and manual conflict. Particularly where the manual can be changed unilaterally, key support commitments should not appear only there.

Also prepare a cost breakdown. In addition to course fees, travel, accommodation, working time, staff absence and repeat training can all have a significant impact. Ask about the cost of training employees recruited later and of training required when the franchise system changes. Include these expenses in your cash flow planning.

5. Agree a clear procedure for service failures

Clarify in advance how cancelled training will be rescheduled and whom you can contact if support is not provided. A documented escalation process, with named contacts and reasonable timescales for handling issues, makes it easier to work together within the franchise network.

If promised services are subsequently not delivered, keep a record of requests, dates and the consequences. Request remedial action in writing. Depending on the breach and the applicable legal requirements, you may have contractual claims or a claim for damages under section 280 BGB. Do not unilaterally reduce ongoing fees; obtain legal advice on how to proceed instead.

Practical takeaway: Sign only once the support, responsibilities and additional costs are clearly set out. A carefully reviewed schedule of services is worth more than a sweeping promise of support with no specific substance.