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Critical duties of a successful franchisee

On Behalf of | Aug 7, 2023 | Franchise Law

Embarking on a journey as a franchisee entails accepting numerous responsibilities essential for the operation and success of your franchise. The franchise agreement will outline what duties you have.

Understanding these duties before signing the franchise agreement is crucial to effectively managing your business and maintaining a strong relationship with the franchisor. Following are the primary duties of a franchisee.

Upholding the brand’s standards

As a franchisee, you must commit to maintaining the brand standards established by the franchisor. This includes following the business model and procedures outlined in the franchise agreement, such as store appearance, product or service quality and customer service standards.

Local marketing

While the franchisor often manages national marketing efforts, franchisees are typically responsible for local marketing and community engagement. This can involve advertising, participation in community events and building relationships with customers and businesses in the area.

Financial management

Franchisees bear the responsibility for all financial aspects of their business. This includes securing initial capital to purchase the franchise, managing daily operations costs and handling employee payroll. Additionally, franchisees are typically required to pay ongoing franchise fees or royalties and possibly contribute to a national advertising fund.


Hiring, training and managing staff are critical responsibilities of a franchisee. Creating a team that meets the business’s operational needs and aligns with the brand’s ethos and service standards is crucial.

Compliance with laws and regulations

Franchisees must comply with all relevant federal, state and local laws and regulations. This includes business licenses and permits, health and safety regulations, employment laws,] and industry-specific regulations. It also includes adherence to any franchise-specific legislation.

Continuous learning and development

The franchise landscape is dynamic. Staying updated is a critical responsibility of a franchisee. This means regularly participating in training programs offered by the franchisor, keeping abreast of industry trends and continuously learning and adapting to market or business environment changes.

The franchise agreement is one of the most important protections you can have as a franchisee. It’s wise to have legal guidance to review the agreement and make sure it accurately reflects your understanding of your responsibilities.