Franchising is a two-way agreement with responsibilities on both sides – it’s vital you know what to expect.  

While no two franchise agreements are identical, these are some of the things you can reasonably expect as a franchisee: 

• A suitable territory with no competition from other franchisees in the system
• Appropriate support and training
• A reliable supply of approved stock or product
• A marketing strategy and relevant promotional materials
• The right to use fully-protected franchise branding and intellectual property, such as the logo and trademarks 
• Sound leadership in business functions such as product management, national marketing campaigns and analysis of market trends  
• Ongoing training and support, including mentoring and advice from other franchisees.

David Lindsay, chief executive officer at BDC Partners, believes that the recruitment process provides strong clues as to what you can expect from the franchisor.

“Skills and competencies can be taught but attitude and values can’t,” he says. “A good franchisor will be looking for franchisees who are aligned with the organisation’s culture, values, work style and stage of growth. Finding the right fit requires thorough due diligence from the outset, so the faster and easier the process the more suspicious you should be. I’d expect to complete an application form, build a business plan or cash flow, meet members of the team and spend a discovery day visiting other franchisees.” 

Help with running a successful business

The initial training and ongoing support you receive will depend on a number of factors including the industry, the size of the franchisor and the system’s culture. The disclosure document will outline what you can expect, though you should also discuss the details with the franchisor.

10 questions to ask about training and support

Will I learn about running a business as well as brand-related skills?

Is the training provided by qualified and experienced people?

Will I receive a detailed manual of processes and procedures?

Is learning face to face, online or both?

How much technology training and support is provided? 

Is there someone I can contact immediately if something goes wrong with the technology?

Does the marketing budget cover national and local advertising, and is promotional material provided?

Who will my head office contacts be and how often can I expect to see them? 

Can I contact head office with questions?

Is there a culture of support among the franchisees? 

Does the support match your needs?

You should always take your own strengths and weaknesses into account when you’re asking questions.

For example, if you’re entrepreneurial and considering an emerging brand with potential to contribute to a developing system, you’ll be happy to see your business development manager from time to time. If you’re more comfortable working with a fully tested and well-established system, you’ll want the security of regular contact and a more collaborative approach to support.

If you have marketing skills, you’ll be happier working with a brand that allows you to do your own local marketing. If you’re driven by social purpose, you’ll be looking for a different culture from someone more focused on ROI. 

“It always comes down to the person not the brand,” Lindsay says. “It doesn’t matter how successful the franchise is, you can’t expect a good outcome if you won’t be doing the things you enjoy and you know you can do.” 

HELPFUL HINT

How much training is enough? It depends on the business, and your own skills. Franchisors should provide business training as well as full technical training. Assess what’s on offer and see if it will be enough to fill in the gaps in your own skillset.