What support does a franchisee receive during the launch phase of their business?

A great deal of support and if that isn’t the case then something has gone wrong!  The whole point about franchising is that it enables inexperienced business people to start a business and, therefore, a franchisor has to do everything to ensure that that happens and that it happens with the least amount of hassle for its franchisee.

 

The great majority of franchise agreements will contain a clause setting out the obligations on the franchisor prior to the start of the franchise business.  Those obligations will consist of a number of things but will certainly include initial training.  The initial training provided by a franchisor is essential because it will provide guidance on general business issues such as VAT, accounting and marketing but also specifically in relation to the business being franchised.  It is unlikely that such initial training will last less than a week unless the franchise is a very simple business.

 

The franchisor should also provide guidance and assistance and make available the franchisor’s manual which contains all of the franchisor’s know how on how to operate the business.  Other elements will also be provided such as an initial stock of stationery, software, if specific software has been developed by the franchisor, an initial stock of products and, if necessary, a list of equipment that the franchisee must use.  Generally, also franchisors will provide guidance or assistance with the initial launch of the franchise, because franchisors know what works and the franchisor’s role is always to establish what works best and to ensure that franchisees actually do what works best.