Franchising in Guatemala: agree your training and support

Buying a franchise does not mean receiving unlimited support. In franchising, training and support can make the difference between knowing a brand and knowing how to run its business. Before signing in Guatemala, turn the promise of ‘ongoing assistance’ into verifiable commitments: who will train you, what you will learn, how much you will pay and what happens if the help does not arrive.

1. Distinguish sales promises from contractual obligations

Guatemala has no specific law comprehensively governing franchises, nor a mandatory pre-contractual disclosure regime equivalent to those in some other countries. The relationship rests primarily on the Commercial Code, Decree 2-70, the Civil Code, Decree-Law 106, and, for matters such as trademark licensing, the Industrial Property Law, Decree 57-2000.

This framework does not prescribe a standard package of training hours, visits or technical assistance for every franchise. You should therefore not assume that paying royalties guarantees whatever assistance you need: check what the contract provides in return.

If the seller offers on-site support, training for new employees or advice on business administration, ask for these services to be included in writing. A brochure may help you identify discrepancies, but it is no substitute for precise contractual terms.

Ask a Guatemalan lawyer to check that the promises made to you match the obligations in the agreement. The aim is to establish what you can enforce without relying on interpretations of phrases such as ‘comprehensive support’.

2. Define training you can verify

Ask for a training programme before committing your investment. Simply stating ‘initial course’ is not enough: it should allow you to assess whether you and your team will be prepared to carry out essential tasks.

The programme should specify:

• Participants: the owner, manager, supervisors and any other roles covered.
• Content: operations, customer service, stock management, controls and business tools.
• Format and location: in-person or remote sessions, or practical training at an outlet.
• Duration and timetable: the time commitment required and conditions for rescheduling.
• Responsibilities: who delivers each module and who answers questions.
• Assessment: pass criteria, opportunities to retake assessments and the associated costs.

If passing the training is a condition of operating, negotiate objective criteria and written evidence of the results. Avoid open-ended assessments that allow additional courses to be required without explaining which skills are missing.

It is also worth distinguishing between learning the brand’s system and receiving local advice. Training designed in another country is no substitute for professional guidance on Guatemala’s tax, employment or health requirements.

3. Budget for training beyond the initial franchise fee

The phrase ‘training included’ may refer only to tuition. Request a breakdown clarifying whether it covers materials, platform access, assessments, and the instructor’s travel and accommodation.

For your part, calculate travel, accommodation, meals and paid time for those attending. If training requires staff to be away from the outlet, consider how you will cover their duties too. Do not budget solely for the franchisor’s invoice.

Ask what happens when the manager changes or you need to recruit staff. Initial training may cover a defined group, while replacements incur new charges. Negotiate how many people can be trained, over what period and at what rate thereafter.

For future compulsory courses, propose a mechanism for giving advance notice of fees and expenses. Clearly separate updates required to continue operating from optional services. Do not accept an obligation to purchase additional training without knowing how its cost will be determined.

4. Turn ongoing support into a workable process

Define the support channels, their operating hours and the types of enquiries covered. A monthly business meeting is not the same as assistance with a fault that prevents you from recording sales.

Propose incident categories and response times based on severity. Distinguish between acknowledging receipt, providing a temporary workaround and resolving the issue fully: these are not the same commitment. Also clarify what is the franchisor’s responsibility and what falls to external suppliers.

For visits, agree on frequency, scope, expenses and how recommendations will be provided. Ask for support requests to be logged and for a designated person to contact when the initial response is inadequate.

Finally, negotiate the measures that will apply to repeated failures to meet obligations: written notice, a period to remedy the breach and contractual consequences reviewed by your lawyer. Do not assume you can unilaterally withhold royalties because support is inadequate.

Practical conclusion: before signing, prepare a summary covering training, participants, costs, channels, deadlines and responsibilities. If a promise of support cannot be described or verified, it still needs negotiating.