Franchisor Support: What to Agree Before Buying a Franchise

“We’ll help you at every stage” is an appealing promise, but not a sufficient basis for buying a franchise. In the Russian franchise market, the support on offer varies: the same words can mean a dedicated launch team or occasional replies from a manager. Before paying, establish what help you will receive, who is responsible for providing it and how its delivery will be documented.

1. Separate legal obligations from sales promises

Russia has no standalone franchising law, but commercial concession arrangements are specifically regulated by Chapter 54 of the Russian Civil Code. Article 1031 is particularly important when assessing support: it distinguishes between the rights holder’s mandatory obligations, which cannot simply be replaced with marketing language, and ongoing support whose terms may be varied by contract.

Under this article, the rights holder must supply technical and commercial documentation, provide the information needed to exercise the rights granted, and instruct the franchisee and their employees on related matters. This does not, however, mean that the law automatically guarantees an on-site opening team, staff recruitment or a full training course.

The same article provides for ongoing technical and advisory assistance, including help with employee training and professional development, by default, unless the contract provides otherwise. You therefore cannot ignore a clause excluding ongoing support on the strength of a salesperson’s verbal promises.

If you are offered a licence agreement or a mixed agreement, whether the commercial concession rules apply depends on the substance of the relationship, not just the document’s title. Ask a lawyer to establish which obligations actually arise under your proposed arrangement.

Russia does not require franchise sellers to provide a specific pre-contract disclosure document in a prescribed form. Do not expect to receive a comprehensive information pack automatically: you will need to define the scope of your due diligence and the materials you request.

2. Check that support exists in practice

Ask for evidence of a functioning support system, not just a sales presentation. If necessary, offer to sign a confidentiality agreement. This can help you negotiate access to confidential materials without demanding disclosure of every trade secret.

Before signing, it is useful to obtain:

• an initial training programme showing topics, duration and delivery format;
• a sample launch timetable setting out both parties’ tasks;
• an anonymised example of a franchisee’s support request and a specialist’s response;
• a list of support roles and how responsibilities are allocated;
• a sample report from a specialist’s site visit or an outlet readiness check.

Ask to see part of a training session and the contents of one operating manual. Find out when the materials were last updated and how franchisees are notified of changes. A large archive is not proof of usefulness: the instructions should help you tackle specific tasks at your future outlet.

Speak to several existing franchisees, ideally looking beyond the recommended contact list. Ask about specific events: who helped before opening, how long they waited for a response when something went wrong, and how a replacement for a departing employee was trained. These questions reveal more than a general “Are you happy with the franchise?”

Check regional availability separately. Advice available only during head office working hours may be inconvenient for an outlet in another time zone. For on-site assistance, clarify lead times and travel costs too.

3. Turn support promises into verifiable contract terms

Ideally, draw up a separate “Training and Support” schedule. For each obligation, specify the deliverable, deadline, responsible party, delivery method and procedure for confirming completion. Do not leave the details of support solely in a presentation or in rules the franchisor can change at its discretion.

Training. Record who will be trained, how many employees are covered by the price, which topics are compulsory and how knowledge will be assessed. Set out the terms for refresher training and training new employees. Clarify what happens if someone fails an assessment: an additional session, reassessment or postponement of the opening.

Launch preparation. Replace “assistance with opening” with a list of actions: reviewing the layout, commenting on equipment placement, advising on the initial order, and providing a specialist to assist with the launch. Distinguish the franchisor’s recommendations from decisions for which you are responsible.

Ongoing support. Define categories of support requests and response times. Acknowledging a request is not the same as resolving the problem. Agree separately on the time allowed for an initial response, the diagnostic process and the provision of an action plan where resolution depends on third parties.

Additional costs. State whether training sessions and consultations are included in the initial franchise fee or royalties. List separately any chargeable site visits, specialists’ accommodation, training for new employees and non-standard work. Require advance agreement on the cost of additional services.

Any specific time limits in the draft should be negotiated, rather than treated as a statutory standard. The franchisor’s team must be able to meet them under a realistic workload.

4. Agree how delivery will be accepted and breaches addressed

Signing a blanket acceptance certificate stating “all services have been provided and there are no complaints” before training is complete creates an unnecessary evidential risk. Confirm the delivery of materials, training sessions and launch work separately. At each stage, allow for specific shortcomings to be recorded and a deadline set for correcting them.

Clarify what evidence both parties will accept: a trainer’s report, an attendance list, an assessment record or correspondence relating to a support request. Specify the official addresses and channels for submitting requests. This will distinguish a documented request from a message left in a manager’s private chat.

If assistance is delayed, there should be a clear procedure: notifying the person responsible, escalating the issue to a senior manager and setting a deadline to remedy the breach. You can agree a contractual penalty for delays in fulfilling specific obligations. Do not assume you can automatically withhold royalties because support is poor: the legal grounds and consequences of doing so need to be assessed separately with a lawyer.

Practical takeaway: before buying, list the support you cannot launch without. Check it against existing franchisees’ experience, then incorporate it into the contract with clear deliverables, deadlines and procedures for putting shortcomings right.