Buying a Franchise: Check What Operational Support You Will Get After Opening

Promises of “full support” often sound reassuring when buying a franchise. Once your outlet is operating, however, your needs become very specific: who will help if service quality slips, stock records go wrong, or the manager struggles to follow procedures? In franchising, ongoing support needs to mean clearly defined services, not simply a good working relationship. Before signing a contract, check what you will actually receive after opening.

1. Distinguish legal obligations from service promises

Indonesia specifically regulates franchising through Government Regulation No. 35 of 2024 on Franchising, which replaced Government Regulation No. 42 of 2007. One of the criteria for a franchise is that the franchisor provides ongoing support to the franchisee.

The regulation also stipulates that franchise activities must be based on an agreement between parties of equal legal standing and governed by Indonesian law. Prospective franchisees should therefore not view the contract solely as a document setting out their obligation to follow brand standards. Rights to support also need scrutiny.

However, the obligation to provide ongoing support does not automatically entitle you to a dedicated adviser every day, unlimited visits, or a guarantee that your outlet will be profitable. The type of support and how it will be delivered need to be clarified in the agreement.

List the support promises made in proposals, presentations and sales discussions. Check them against the contract. If an important promise is missing, ask for it to be put in writing before you commit. Avoid accepting assurances that the details of support will only be settled after payment.

2. Turn support promises into measurable services

Start with the operational problems you might face, rather than the name of the support programme. Terms such as “regular consultations” do not tell you whether those sessions will address your outlet’s reports or simply take the form of general meetings for the whole network.

For each type of support, ask for clarity on:

• Scope: the issues covered, such as quality control, operational bookkeeping, stock management or service reviews.
• Responsibility: the role or team responsible, including cover when the main contact is unavailable.
• Channels: outlet visits, online calls, telephone support or a trackable system for reporting issues.
• Schedule: the frequency of routine reviews and the hours during which help is available.
• Outputs: records of findings, recommended actions and a timetable for follow-up checks.

Distinguish between initial response time and resolution time. An acknowledgement that your message has been received does not mean the problem has been resolved. For issues requiring investigation, the contract can set out diagnostic stages, progress updates and responsibility for follow-up.

For example, stock control support should ideally go beyond supplying a manual. Ask whether a support officer will review stock discrepancies, help identify their causes and assess the improvements made. These are examples of details that can be negotiated, not service formats or response times automatically required by law.

3. Assess the franchisor’s capacity and the cost of support

Written service commitments are only useful if the franchisor can deliver them. Ask about the support team’s structure, allocation of territories and arrangements for covering staff absences or replacing team members. Also ask how service levels will be maintained as the number of outlets grows or when several outlets need help at once.

You can request anonymised examples of visit reports, a complaints-handling workflow or a demonstration of the support request system. The aim is not to obtain other franchisees’ confidential information, but to see whether the support process actually works and leads to follow-up action.

Next, distinguish support included in your regular payments from additional services. Check for potential charges for travel, accommodation, unscheduled visits or specialist assistance. Do not assume royalty payments always cover every form of support.

Ask for additional expenditure to require your prior written approval. If rates can change, clarify how you will be notified and when new rates will take effect. Calculate costs based on your outlet’s location: apparently affordable face-to-face support can become expensive if the franchisee must pay all the support officer’s travel costs.

Clarify the limits of responsibility too. Advisers may provide recommendations, while implementation decisions and day-to-day work remain the outlet manager’s responsibility under the contract. This division helps avoid any expectation that the franchisor will take over the entire operation.

4. Agree what happens if support is not provided

The contract should explain how to report failures to deliver support. Specify the address for formal notices, the evidence to include, who will handle escalated complaints, and deadlines for a response and a plan to restore service.

Also discuss what happens if failures recur. Options for negotiation include replacement visits, appointing a different adviser or adjusting certain service fees. All of these must be agreed; do not assume franchisees automatically have the right to stop paying royalties when support falls short.

Once your outlet is operating, keep records of support requests, responses, visit reports and your own corrective actions. Documentation helps distinguish shortcomings in support from recommendations that have not yet been implemented. Ask a legal adviser to review how these arrangements fit with the contract as a whole.

Practical rule of thumb: before buying, make sure you can answer five questions: what support is provided, who provides it, when it is available, how it is paid for, and what happens if it is not delivered. If the answer is still “we’ll help you later”, the promise of support is not clear enough to base your decision on.