Buying a franchise: assess training and start-up support

A well-known franchise brand does not automatically prepare you for your first day in business. Even within a strong franchise network, you need to learn how operations, quality control and day-to-day management work. Before buying, find out exactly what training and start-up support you will receive. The difference between an introductory day and a structured induction programme can have a significant impact on your preparations, staffing plans and opening date.

1. Compare the training on offer with your own experience

Start with your own knowledge, rather than the franchisor’s brochure. Do you have experience in managing staff, stock control, sales and financial administration? Which aspects of the franchise system are new to you? Even an experienced business owner may need extensive instruction in specific working processes.

Next, ask for a training programme setting out the topics, learning objectives, duration and teaching methods. A promise of ‘comprehensive training’ tells you very little on its own. Check whether you will simply receive instructions or also gain supervised practice at an existing outlet.

Distinguish between three areas:

• Knowledge of the franchise system: products, services, quality standards and daily procedures.
• Business management skills: staff scheduling, performance management and handling complaints.
• Practical preparation: practising real workplace situations and working with your team.

Ask who delivers the training and how much individual support is available. A programme based mainly on independent reading requires different preparation from hands-on training. Also check whether employees receive training or whether you will be responsible for passing on everything you learn.

2. Understand the legal basis for support

The Netherlands has specific franchise legislation: the Dutch Franchise Act, incorporated into Title 16 of Book 7 of the Dutch Civil Code on 1 January 2021. Article 7:917 of the Civil Code is particularly relevant to training and support. It requires the franchisor to provide the assistance and commercial and technical support that can reasonably be expected, given the nature and purpose of the franchise system.

The law does not prescribe the same number of training days or site visits for every franchise. What you can reasonably expect depends on the franchise system and the circumstances. A complex business concept may require different support from a simpler operation. Specific contractual provisions help clarify those expectations.

If you need particular assistance or support, you must inform the franchisor. The parties must then discuss the matter. This does not mean that every request must automatically be granted, but it does mean that support is not solely a matter of goodwill.

Pre-contractual disclosure requirements are also relevant. The draft agreement, its appendices and information about financial obligations must be provided in advance. You should therefore request the training programme and details of its costs before signing. For franchisees established in the Netherlands, the statutory franchise rules cannot be varied to their detriment.

3. Calculate the full cost of training

Training described as ‘included’ may still involve costs. You might not pay course fees, but you may have to cover travel and accommodation. Training will also leave you with less time for other preparations or paid work.

Ask for a breakdown of:

• participation fees for you and your employees;
• travel, accommodation and any materials costs;
• wages and staff cover costs during training hours;
• examination fees, resit fees and the cost of additional support;
• the cost of compulsory further training after opening.

Check how many participants the package covers. Staff turnover may create a need for further training. Also ask whether fees for additional training are fixed or may change later.

List these items separately in your start-up budget. This will help you compare franchise opportunities more fairly: a lower initial franchise fee may come with higher training costs that you must cover yourself. If any figures are unclear, ask for a calculation based on your planned team size and experience.

4. Make opening and follow-up support workable

Some franchise systems make opening conditional on successfully completing training. If so, check the assessment criteria in advance, who carries out the assessment and what happens if you or an employee does not pass first time. Discuss the availability of additional support and resits, including timing and costs.

Align the training schedule with your planned opening date. What happens if the franchisor postpones a training session? Who will help you adjust your preparations? An unclear timetable could leave you paying for staff and premises before you can start trading.

Also ask about support during your first few weeks in business. Will someone be on site, what tasks will they help with and when will they be available? Who can you contact afterwards if operational problems arise? Record how queries should be submitted and the agreed response times. Distinguish between an acknowledgement and actual help.

Practical takeaway: do not buy on the strength of the word ‘support’. Before signing, obtain a specific training and support plan covering content, timing, costs, entry requirements and points of contact. Have any unclear or restrictive contractual terms reviewed by a lawyer specialising in franchising.