Buying a franchise

Buying a franchise: assess the support before you sign

What help will you actually receive from the franchisor? Assess training, ongoing guidance and availability before signing a franchise agreement.

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Buying a franchise: assess the support before you sign

A well-known brand may attract customers, but it will not automatically help you with a frozen till system or a difficult staff rota. Buying a franchise means joining a franchise community in which knowledge-sharing and support matter. So look beyond what the franchisor promises: find out who provides that help, when it is available and how you can put those commitments in writing.

1. Understand the statutory minimum for support

The Netherlands has specific franchise legislation: the Franchise Act, set out in Title 16 of Book 7 of the Dutch Civil Code. It requires franchisors to provide the assistance and commercial and technical support reasonably necessary to operate the franchise business.

This is neither a guarantee of profit nor a promise that the franchisor will take over all your responsibilities as a business owner. You remain an independent business owner, operating at your own expense and risk. What support is reasonably necessary depends partly on the franchise model and the circumstances. For a franchise that relies entirely on centralised ordering software, for example, technical support is clearly relevant.

If you consider the support inadequate, you must tell the franchisor. Both parties must then discuss your needs and how they can be met. The law also requires consultation between franchisor and franchisee at least once a year. That meeting is no substitute for help with an urgent system failure.

For franchisees established in the Netherlands, contractual terms cannot depart from these statutory protections to their disadvantage. A clear agreement nevertheless remains important: it helps prevent disputes about what the general duty to provide support means in your day-to-day operations.

2. Turn sales promises into specific commitments

Before signing, ask for the draft agreement, its schedules and a clear description of the support package. The statutory disclosure requirements include information about how consultation takes place and how often. Ask for an explanation of any relevant references to the franchise operations manual too. A reference to a document you have not been able to review offers little reassurance.

Next, draw up a table with four columns: promise, person responsible, timing and any additional costs. Include at least the following:

  • Initial training: content, duration, location, participants and further guidance if you have not yet mastered certain elements.
  • Opening support: on-site presence and assistance during the first few weeks of trading.
  • Operational support: site visits, discussions about operational difficulties and follow-up on agreed actions.
  • Technical help: availability during system failures, emergency procedures and out-of-hours support.
  • Commercial support: national campaigns, local marketing materials and guidance on attracting customers.

Distinguish between access to resources and hands-on guidance. Access to a training portal is not the same as having a trainer practise with your staff. A national campaign is not the same as help with a local launch.

Also ask which services are included in the franchise fee. Do refresher courses, extra site visits or technical work cost extra? Record what contribution is expected from you as well. Support only works if both parties honour their commitments.

3. Check whether the organisation can deliver on its promises

A polished support plan means little without enough people and clear working procedures. Ask who your regular point of contact will be, how many locations they support and who covers their absence. Do not just ask about current staffing: find out how support will expand as new locations open.

Check the answers with existing franchisees. The franchisor must provide contact details for other franchisees in advance. Ideally, speak to business owners with different experiences: someone who has recently started, an experienced operator and someone who has been through a difficult operational period.

Ask about specific events:

  • When did you last need urgent help?
  • How quickly did you receive a substantive response?
  • Who remained responsible until the problem was resolved?
  • Which support services turned out to cost extra?
  • What would you have wanted to agree more clearly before signing?

Where possible, ask for anonymised examples of site visit reports, training plans or resolved support requests. This allows you to assess not just satisfaction levels, but also how the organisation works.

A franchisees’ association or franchise council can show how recurring problems are discussed collectively. That is part of a healthy franchise community, but it does not replace your own contractual arrangements.

4. Record commitments and the escalation process

Have important commitments included in the agreement or a schedule. These might cover a named contact, the frequency of support meetings and a procedure for reporting urgent issues. For technical incidents, distinguish between an initial response and an actual resolution: an acknowledgement will not get your ordering system working again.

Also check whether the franchisor can change the support package unilaterally. Ask an independent lawyer specialising in franchising to assess how any such variation clause fits with the other terms and the law.

Agree who you can turn to if routine support falls short. Keep written records of reported issues, responses and agreed follow-up actions. If a dispute arises, do not stop paying fees without taking legal advice; doing so could expose you to contractual risks of your own.

Practical conclusion: do not buy into a vague promise of guidance. Ask for a specific support plan, check with franchisees how it works in practice and put the key commitments in writing before you sign.

Sources

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