Among the obligations incumbent upon the franchisor is that of providing franchisees with ongoing assistance throughout the term of the franchise agreement. How does this assistance take shape and what are its limits?
The assistance provided by the franchisor must focus on assisting the franchisee in the proper implementation of the know-how. It generally takes the following form:
- Regular visits to the franchisee’s premises to audit the business and recommend any adjustments/measures necessary to optimize performance;
- Video conference meetings, generally on a monthly basis, to analyze the franchisee’s key business performance indicators;
- Organization of ad hoc training sessions to pass on new developments in know-how;
- Updating of operating manuals ;
- Monitoring of regulations affecting the activity of the network;
- Organization of network events such as yearly conventions and regional meetings.
However, the franchisor must not interfere in the operation of the franchisee’s business, which remains responsible for its staff and its relations with third parties.
If the franchisee encounters difficulties, the franchisor may assist them in defining an action plan to remedy these problems, while involving the franchisee and, where possible, their accountant.
The franchisor must therefore incorporate into their process the need to have the necessary time to provide this assistance to all of their franchisees.
The fulfillment, by the franchisor, of its duty to assist the franchisee, is often the topic of litigations . It is theferore necessary that the franchisor keeps evidence of said assistance rendered to the franchisees.