To be successful as a Franchisee it is important to be clear as to the amount of support that the Franchisor will provide.
Misunderstanding about support is an area that can lead to dispute between the Franchisor and Franchisee, can cause mis-trust and is a contributing factor to Franchisee failure and failure of the franchise system as a whole.
Before entering into a franchise, prospective Franchisees should check the type of support that the Franchisor will be providing.
Information about support may be set out in:
- the Franchise Agreement;
- the Disclosure Document;
- Operations Manual; or
- other franchise documentation.
You can clarify the support arrangement directly with the Franchisor or by contacting existing Franchisees within the franchise network and obtaining their feedback on Franchisor support.
Franchisors often hold quarterly, bi-annual or annual meetings with their Franchisees. If you are an existing Franchisee and have concerns about Franchisor support, raising these concerns at the meeting may well be worthwhile. There could be other Franchisees experiencing the same issue. Those concerns can then be more closely examined and ideas for alleviating the issue discussed at the meeting.
If you have entered into a Franchise Agreement based on representations made to you by the Franchisor about support, and such support is not provided to you as represented, you may have remedies at law such as an action for misleading and deceptive conduct.
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The material provided in this document is for general information only and is not to be relied upon as advice. No responsibility is accepted for any loss, damage or injury, financial or otherwise, suffered by any person or organisation acting or relying on this information or anything omitted from it.
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