Recruiting franchisees without making promises you cannot keep

Your existing business is doing well and you want to grow through franchising. Putting together an appealing recruitment page may seem straightforward. But phrases such as ‘proven success’ or ‘profitable from day one’ can raise expectations that your new franchise model cannot yet support. Good recruitment does not sell certainty: it explains what you offer, what candidates must do themselves and what remains uncertain. This lays the foundations for a healthy franchise community.

1. Distinguish between business success and franchise model success

A successful business of your own does not automatically prove that a franchisee can achieve the same results. Perhaps customers know you personally, your rent is exceptionally low or you work more hours than your records show. These circumstances do not invalidate your success story, but they do call for careful wording.

Before publishing, list the main claims in your campaign. For each claim, note the supporting evidence and any limitations.

• ‘An established name’: is your brand known in just one local area, or further afield too?
• ‘A proven franchise model’: is only your original business operating, or have your methods also been used at other locations?
• ‘Comprehensive support’: what support can you actually provide, who will provide it and when?
• ‘Get started quickly’: what preparations, permits or premises requirements could affect the timetable?

Use specific descriptions rather than sweeping claims. ‘You will have access to our operating procedures and a clearly defined start-up programme’ is easier to substantiate than ‘everything is taken care of for you’. Be open about looking for your first franchisee, too. For the right candidate, helping to develop the franchise can be an attractive prospect.

2. Give your recruitment page a consistent structure

A recruitment page does not need to include every contractual term. It does, however, need to present a sufficiently balanced picture so that candidates do not respond on the basis of a mistaken impression.

Start by describing the business’s day-to-day activities and the franchisee’s role. Will they work on the shop floor themselves, manage staff or focus mainly on sales? Then explain what the franchise provides and which responsibilities remain with the franchisee as an independent business owner.

Also include four practical elements:

1. Stage of development: what is already in place and what is still being developed?
2. Financial structure: what types of investment and fees are involved?
3. Commitment required: what time, skills and local involvement do you expect?
4. Next steps: what happens after an enquiry, and when will detailed information be provided?

If you quote an initial cost, explain what it does and does not include. An initial franchise fee is not the same as the total start-up capital required. Premises, fitting out, stock and working capital may all be additional costs. Avoid a standalone ‘start from’ price that looks inexpensive mainly because essential items have been left out.

3. Keep advertising distinct from disclosure obligations

The Dutch Franchise Act has been in force in the Netherlands since 1 January 2021 and forms part of Book 7 of the Dutch Civil Code. Among other things, it strengthens prospective franchisees’ access to information before they enter into an agreement.

The franchisor must provide, in good time, information including the draft agreement and its annexes, details of fees and investments, and relevant financial data. A statutory waiting period of at least four weeks then applies between the provision of the legally required information and the signing of the agreement. A recruitment brochure is no substitute for this disclosure.

The Act does not impose a general obligation to prepare a turnover forecast. If you do share turnover expectations or illustrative calculations, make their basis clear. For example, state whether they reflect historical figures from your own outlet, a calculation based on assumptions or a forecast for a particular location. Never present turnover as though it were income available to the franchisee for personal spending.

General rules on misleading advertising and entering into a contract under a mistaken understanding may also be relevant. A disclaimer at the bottom of the page does not automatically make a firm promise of success acceptable. Have financial claims checked by your accountant and legal wording reviewed by a lawyer specialising in franchising. A candidate’s duty to carry out due diligence does not relieve you of your own disclosure obligations.

4. Keep your message consistent across recruitment channels

You can reach candidates through your website, social media and franchise platforms. Choose channels that allow you to explain what running a business under your franchise model involves, rather than simply those that generate the most enquiries.

Use one approved core text and a standard set of answers to frequently asked questions. Share these with staff and external intermediaries as well. Agree that no one may independently promise returns, exclusivity or guaranteed opening dates.

For each campaign, keep a record of the published copy, the figures used and the publication date. If your offer changes, update every channel and inform candidates who are still relying on older information. During the first conversation, also ask: ‘What do you expect based on our advert?’ This helps bring misunderstandings to light early.

Practical conclusion: only publish once every important promise is supported by evidence, the scope of the costs is clear and everyone involved is communicating the same message. Good recruitment generates more than interest: above all, it creates realistic expectations.