Buying a franchise: check what support you get if results fall short

A strong franchise system proves its worth not only at launch, but also when an outlet struggles. If you are buying a franchise in the Netherlands, investigate beforehand what support is available when results fall short. As part of a franchise network, you remain an independent business owner, but you are not entirely on your own. Establish exactly what the franchisor will do while you run the business, who is responsible and which costs you will bear.

1. Understand the difference between assistance and a performance guarantee

The Netherlands has a Franchise Act, incorporated into Articles 7:911 to 7:922 of the Dutch Civil Code. Article 7:919 is particularly relevant to support during the franchise relationship. The franchisor must provide the commercial and technical assistance that can reasonably be expected for the operation of the franchise, given the nature and purpose of the franchise system.

If you need particular assistance, you must notify the franchisor. The parties must then discuss it. The law therefore provides a basis for support, but does not prescribe a standard package with a fixed number of advisory hours or outlet visits.

This distinction matters when deciding whether to buy. The duty to assist does not automatically mean that the franchisor guarantees your turnover, profit or business survival. Nor does it take over your day-to-day responsibilities as a business owner. What you can reasonably expect depends in part on the franchise system and the specific circumstances.

So do not simply ask: ‘Will you help if things get difficult?’ Ask which commercial and technical problems the franchise network typically helps resolve. Examples might include a poorly functioning ordering system, insufficient local customer acquisition or difficulties implementing the franchise concept.

2. Make promised support verifiable before buying

This investigation is not about initial training, but about the months and years that follow. Ask the franchisor to explain how support is organised during normal operations and when additional help is provided.

Before signing, ask for clear answers on these points:

• Monitoring: which outlet data is tracked, and who identifies persistent underperformance?
• Availability: is there a designated contact person, and who covers their absence?
• Approach: when problems arise, is there a discussion, a site visit or a written improvement plan?
• Expertise: who helps with commercial problems, and who deals with technical faults?
• Follow-up: when is the effectiveness of the agreed measures reviewed?

Ask for an anonymised example of support provided to an existing outlet. A concrete example tells you more than a promise of ‘intensive guidance’. Look at the actions taken by both parties: what assistance did the franchisor provide, and which measures did the franchisee have to implement themselves?

The statutory pre-contractual disclosure duty is relevant here. Among other things, the franchisor must provide the draft agreement with its appendices and details of relevant financial obligations. Ask about the terms of additional support too. Have important commitments included in the agreement or an appendix, rather than relying solely on a sales conversation.

3. Investigate the costs and limits of extra support

Additional costs can be particularly burdensome when results are disappointing. Check which support is covered by the regular franchise fee and which services are billed separately.

Distinguish between routine franchise support, necessary commercial or technical assistance, and separately agreed additional services. A paid advisory package does not automatically relieve the franchisor of its statutory duty to assist. Equally, that duty does not mean that every service you might want must be available without limit.

For potential additional services, ask about the price, any approval required, and any travel or external consultancy costs. Also check whether you may appoint your own specialist and how they can work with the franchise support adviser.

Put forward a specific scenario: your outlet has been underperforming for several months, even though you are complying with the franchise requirements. Who investigates the cause? Who prepares the improvement plan? Who pays for an additional local marketing campaign? And what happens if the plan does not work?

A useful answer identifies responsibilities and decision points. An answer that amounts solely to ‘you are an independent business owner’ warrants further legal scrutiny.

4. Agree how to request support and follow it up

A workable support process prevents problems from getting lost in a series of disconnected phone calls. Before buying, ask how to submit a request for support and what response time will be agreed. That timeframe is a contractual matter; the law does not specify a universally applicable number of days.

When you subsequently make a request, describe the problem, its consequences, the measures you have taken and the assistance you need. Keep relevant figures, fault reports and correspondence. After discussions, confirm in writing who will take each action and when progress will be reviewed.

If appropriate support is not forthcoming, record precisely which assistance is missing and request a discussion and a solution. If the dispute persists, ask a lawyer specialising in franchising to assess the appropriate next steps. Do not stop paying fees on your own initiative without legal advice.

Practical conclusion: do not buy into a franchise solely on the strength of a convincing launch proposition. Before signing, ask for a clear, verifiable support process for difficult months, with defined responsibilities, costs and follow-up.