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Buying a franchise in 2025 is exciting news. Yes, it can be an involved and sometimes complex process, but the prospect of having your own show to run – backed by the robust support of a reputable franchisor – remains an appealing opportunity in today’s competitive market.
Once the agreement is signed and the celebratory cork is popped, what’s next?
The Franchise Background
If you’ve ticked off all the preliminary steps, you should now have a broad understanding of what it takes to run your franchise. This is typically detailed in your Franchise Agreement and the accompanying operations manual provided by your franchisor – which, in 2025, is increasingly offered in digital format for quick reference.
Every franchise is unique, and you will have scrutinised your agreement in detail, familiarising yourself with your legal obligations. However, you might not have had the full context to consider the implications of certain clauses at the time of signing.
Similarly, while you may have thoroughly read the operations manual, it is only once you are actively running your franchise that the finer details truly crystallise. Modern franchisors now update their manuals regularly to reflect current digital trends and evolving regulatory demands.
A franchise agreement permits you, the franchisee, to operate your business under the established business name, branding, systems and intellectual property of the franchisor. Understandably, the franchisor has a strong vested interest in your success, as their reputation and business name are on the line. This is why extensive effort is invested in creating the right support, training, structures and processes to help you thrive. For further guidance on setting up your business structure, you might also want to review our insights on Sole Trader vs Company.
Trust and goodwill are key to fostering a strong, mutually beneficial relationship. Both you and the franchisor need to be aligned in your goal of cultivating a growing, successful business.
So, it is essential that you consistently fulfil your side of the bargain.
Your Ongoing Obligations
Broadly, as a franchisee in 2025 you have the following obligations:
- To act in good faith
- To comply with the franchise business model as set out in your contract documentation
- To meet your financial obligations
- To run your business lawfully
- To follow the agreed dispute resolution process where necessary
Let’s explore these points in more detail.
Acting In Good Faith
Trust and goodwill have become even more critical in today’s digital and interconnected environment. Both you and your franchisor are investing substantial time, effort, and finances into this commercial venture. With the enhanced use of collaborative platforms in 2025, maintaining a transparent and honest attitude is more important than ever.
See yourself as part of a team with a shared vision – when you promote and protect the business name and reputation, both parties benefit. Acting in good faith remains the best foundation for your long-term success. For additional tips on maintaining robust business relationships, our article on What Makes a Contract Legally Binding offers useful insights.
Compliance With The Business Model
Your franchisor has carefully designed the business model based on extensive research and practical experience to maximise success. In 2025, much of this setup now integrates digital tools and automated systems to streamline operations. Significant investments are often made in legal fees, accounting, and digital infrastructure to ensure consistency across the franchise network.
You may have innovative ideas of your own, but remember there can be a divergence between what might seem best for your individual outlet and what is in the overall interests of the franchise network. For instance, bulk purchasing strategies – designed to secure economies of scale – might require you to source supplies from a designated supplier, even if you have an alternative preference.
Your Franchise Agreement clearly sets out your responsibilities, including details on:
- The range of products or services you may offer
- The approved suppliers and sourcing channels
- Marketing strategies and branding guidelines
- The fees payable to the franchisor
- Your ongoing reporting and record-keeping requirements
- Consent or notice obligations for certain changes or additional activities
- Standards for the upkeep of equipment or premises
If any queries or concerns arise about these requirements, address them promptly to ensure any issues are resolved before they escalate.
An operations manual is typically provided by the franchisor and is often incorporated by reference into your franchise agreement, making it a legally binding document. It outlines the practical day-to-day procedures and standards that you must follow – including specifics about goods or services, approved suppliers, marketing strategies, designated software platforms, and operational procedures.
Meeting Your Financial Obligations
A primary reason for buying into a franchise is to gain the benefit of an established business model, complete with pre-built processes, training, branding, and marketing structures. In exchange, you agree to pay various fees that support these benefits. Recent surveys indicate that over 70% of franchisees in 2025 utilise online accounting platforms to manage their finances, helping them stay on top of both upfront and ongoing costs.
Such fees might include:
- The upfront buy-in or purchase price
- An ongoing royalty fee, usually calculated as a percentage of your sales
- A contribution to a central marketing fund or set marketing expenditure
- Costs for maintenance or upgrade of premises and any franchisor-supplied equipment
- A renewal fee should you choose to extend the franchise agreement
- Training fees for required upskilling and induction programmes
While the franchisor is keen to see you profitable, managing your budget and maintaining accurate financial records remains your responsibility. Engaging an accountant or a bookkeeping service may prove invaluable. For further reading on effective financial management as a business owner, our guide on Starting a Business From Home offers practical advice.
It’s also important to note that although you contribute to central funds, decision-making regarding these funds typically remains with the franchisor – a matter that occasionally leads to disagreements. Nonetheless, you must continue to meet your contractual financial commitments.
Running Your Business Lawfully
Every franchise operates in a unique regulatory environment. Depending on your specific industry, there may be strict legal requirements in place – from food health and safety regulations to licensing laws for alcohol or medications, to stringent data protection requirements if you collect personal information.
It is crucial to familiarise yourself with and adhere to all relevant laws. For example, ensuring compliance with updated accounting and taxation standards in 2025 can save you costly penalties. Our article on Legal Requirements for Running a Business provides further clarity on these matters.
Following The Dispute Resolution Process
If you approach your franchise with the right intentions, demonstrate good faith, maintain financial discipline, and operate within the law, you will have established a solid foundation for a successful relationship. However, disputes can and do arise, even in the best-run franchises.
In such cases, it is vital to revisit your Franchise Agreement, which will outline the dispute resolution process. Many franchisors now incorporate alternative dispute resolution methods – such as mediation or arbitration – which are increasingly being used in 2025 to resolve conflicts efficiently. If issues persist, consult our guide on How to Terminate a Franchise Agreement for detailed advice.
Need Help?
If you’re embarking on an exciting new venture in the franchising world, it’s essential to be fully aware of your ongoing obligations. Although the process may seem daunting, remember that we’re here to help you navigate every step of the way.
Reach out to our team for a free, no-obligation chat at [email protected] or call 1800 730 61. Additionally, you may find our comprehensive resources on business setup and legal compliance guides very useful as you work to future-proof your franchise in 2025.
Looking ahead, the franchising landscape continues to evolve rapidly. Embracing technology, maintaining rigorous financial practices, and staying updated with current laws will be key to your ongoing success. By taking advantage of our expert resources and regularly reviewing your contractual obligations, you ensure that both you and your franchisor can adapt to new challenges and opportunities alike.
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