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What ongoing support is provided by a franchisor?

What ongoing support is provided by a franchisor?

answered by Shelley Nadler

Legal director at Bird & Bird

Shelley Nadler writes:

It’s usual to provide ongoing training in a business format franchise, both to ensure quality standards are achieved and maintained and to introduce the franchisee to changes to the system.

Additional training may be provided to deal with product and service innovations, such as new equipment, software or the introduction of new products or services. Where employees are involved in the franchise, the franchisor may also train the franchisee to provide initial and ongoing training to its employees or it may provide training to the franchisee’s employees itself

The range of ongoing support may include monitoring the progress of the business by reviewing financial and other data provided by the franchisee and by regular contact with the franchisor.

The franchisor’s support staff may carry out a formal or informal inspection of the franchisee’s business to check if standards are being maintained and, if they’re not, to explain to the franchisee what needs to be rectified.

Some franchisors provide ongoing support with back office functions such as invoicing and credit control. Franchisors may provide support to franchisees with customer leads or provide a central call centre. It may be that the franchisor provides support with social media and online marketing.

Shelley Nadler is a legal director in Bird & Bird’s international franchising team and has many years’ experience of advising on all aspects of franchising.

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