Buying a franchise: review the training before you sign

One important advantage of buying a franchise is access to a network where knowledge and working methods can be shared. But an established brand does not automatically make you ready to run the business. Before you sign, you need to assess whether the training will actually fill your skills gaps, what it costs and which requirements you must meet before you can work independently.

1. Match the training to the skills you need

Do not start by asking how many days of training are included. Start with the tasks involved. Ask the franchisor to explain what you will be expected to do on your own after training and what prior knowledge the franchise model requires.

Then draw up a simple skills assessment with three columns: task, your current experience and training needed. Include both customer-facing work and the day-to-day management of the business. Being good at sales, for example, does not necessarily mean you already know how to plan capacity, monitor margins or follow the franchise’s quality procedures.

Ask for a training syllabus showing:

• Which topics are covered and their learning objectives.
• How much time is devoted to practical training and how much to self-study.
• Which systems, products and working procedures you will practise using.
• Who delivers the training and what experience they have.
• Whether the training is tailored to your existing knowledge.

Also distinguish between training in the franchise model and knowledge you must acquire elsewhere. An introduction to the network’s procedures is not necessarily a comprehensive course in running a business. If the business requires specific permits or qualifications, check separately which requirements apply and whether the training will genuinely help you meet them.

2. Check how your skills are assessed in practice

A presentation can explain a procedure without preparing you to use it under time pressure. Ask how the training moves between instruction, supervised practice and independent work. It is also worth asking for an example of a practical task and how feedback is given.

If training takes place at another franchisee’s business, responsibilities need to be clear. Who plans the supervision? Is dedicated time set aside, or are you expected to learn by shadowing day-to-day operations? Who makes sure you get to practise handling uncommon but important situations, such as customer complaints or quality issues?

Check in particular whether passing an assessment is a condition of the agreement. If so, you need to know more than simply that training is compulsory. Ask which assessment criteria are used, who makes the decision and whether you will receive written reasons if you fail.

Also clarify the options for further training and reassessment. How soon can these take place? Who pays for additional supervision? What happens to your right to run the business if you do not pass? There is a difference between a test that identifies where you need more practice and an assessment that could prevent you from operating the franchise.

3. Calculate the full cost of training

The phrase ‘training included’ does not tell you which expenses are covered. Request a breakdown of course fees, materials, assessments and other costs. Check whether the price covers only you or also an employee, and whether additional participants are charged separately.

Then calculate the indirect costs. Travel, accommodation and time away from other paid work can affect the overall cost of buying the franchise, even when the course itself is included. For employees, wages and the need for cover may also need to be factored in.

Prepare two calculations: one assuming training goes to plan, and another allowing for additional training. Use the franchisor’s actual prices where available and label the rest as estimates. This will help you identify which information is still missing.

Review ongoing training too. Are new courses compulsory as the franchise model develops? Are the amount of training, notice periods and pricing arrangements specified? Ask about online options and how future employees will be inducted. An arrangement that is affordable for you at launch could become considerably more expensive when more people need training.

4. Distinguish disclosure obligations from your right to training

In Sweden, the Act on Franchisors’ Duty to Disclose Information (2006:484) applies. It requires the franchisor to provide clear, understandable written information, well before the agreement is signed, about what the agreement entails and any other matters relevant to the circumstances. The minimum disclosure requirements include payments and other financial terms.

However, the Act does not prescribe a particular number of training days or a specific standard of teaching. Your entitlement to training therefore needs to be set out in the agreement. Contractual matters are also assessed under general contract law, including the Swedish Contracts Act.

Ask an independent lawyer to review, in particular, the relationship between training, passing assessments and your right to operate the business. Check that the agreement clearly states what the franchisor must provide and what you must achieve. Do not treat a certificate of attendance as a guarantee that you have mastered everything the business requires.

Practical takeaway: Do not buy on the strength of a promise of induction alone. Before you sign, make sure the training fills your skills gaps, the requirements for passing are clear and you have calculated the full cost.