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Franchisor Training Obligations

The sales pitch described a thorough training program and ongoing support. After opening, the training turned out to be a short video library and a support line that rarely answers.

Reviewed

01 GUIDE

Franchisor Training Obligations: what usually happens

Where the promise is written

Training obligations usually appear in two places: the franchise disclosure document, which federal rules require franchisors to provide before a sale and which describes the training program, and the franchise agreement itself. The two do not always match, and the agreement often contains language saying it is the complete deal. Sales presentations, emails, and websites may describe more support than either document. In New York, franchise sales are also governed by a state law with registration requirements and anti-fraud provisions that can reach misleading statements made in offering a franchise. How much weight any extra promise carries depends on what was said, when, and what the signed documents say.

Records that show the gap

Keep the disclosure document you received along with its receipt date, the signed franchise agreement, the operations manual, and all marketing or sales materials. Records of the training you actually received, such as schedules, attendance confirmations, course materials, and requests for help, show what was delivered. Accounts from other franchisees describing similar experiences can be relevant, though it is wise to discuss with your lawyer before reaching out to them. Financial records showing how the shortfall affected opening or operations help connect the problem to its cost. For a franchisor, its own training records and curriculum versions are just as important.

Options on either side

Franchise agreements often require notice and an opportunity to cure before a party can claim breach, and many contain arbitration, forum, or limitation clauses that shape the response. A franchisee may have contract claims, claims under franchise law, or both, and a franchisor may need to address a training complaint before it becomes a reason a franchisee gives for withholding royalties. Stopping royalty payments without advice can create a default of your own, so that step deserves caution. We start by comparing the disclosure document, the agreement, and the training record, then look at the notice and dispute provisions to set the order of steps.

02 ATTORNEYS

Who you would be working with

Attorneys at our New York and Washington, D.C. offices handle matters like this one.

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Attorney Advertising. This page is general information about franchisor training obligations and is not legal advice. Reading it does not create an attorney-client relationship. Outcomes depend on the facts of each matter, and prior results do not guarantee a similar outcome. Laws differ by state and change over time.