The Importance of Good Training for Franchisees and Franchisors

by Ed Teixeira

One of the major reasons people purchase a franchise is to acquire a business with a proven system. This proven franchise system should include an effective and comprehensive training program. Learn about the components of a successful franchise training program and find out why it’s so important for both the franchisee and franchisors.

Item 11 of the Franchise Disclosure Document (“FDD”) requires a franchisor to disclose its contractual support obligations to its franchisees. This section outlines pre-opening assistance as well as ongoing assistance. It details the franchisor's training programs and any required franchise systems, such as computers and software. There is a great deal of information in this section of the FDD, but franchisees need to know clearly what training they will receive. Franchisees need to be given the proper pre-opening training so they can start successfully and the right post-opening training so this can continue into a smooth operation.

Franchisors need to construct and present quality training to their franchisees. Quite often, quantity takes the place of quality when it comes to franchisee training Since franchisees can only retain a certain amount of information from a training session, franchisor training should focus on the most important and critical components of franchise operations.

How Good Training Benefits the Franchisee:

•  They understand the important components needed to operate the business
•  Ensures a smoother and more successful franchise start-up
•  Knows the skills his/her employees should have
•  Can overcome problems and challenges that may arise
•  Provides strong sales building and marketing skills
•  Teaches ‘What works and what doesn’t”
•  Efficient operation preserves franchisee working capital
•  Increased franchisee profitability

How Good Training Benefits the Franchisor:

•  Franchisees start-up their franchise correctly
•  Minimizes franchisee mistakes and the need for franchisor staff to intervene
•  More productive use of franchisor staff
•  Higher  probability of more successful franchisees
•  Improve franchisee satisfaction and promote positive relations
•  Improved franchisee validation
•  A better franchise network
•  Increased profitability

The Components of a Successful Franchise Training program: 

•  Teaches the critical elements and components of how to operate the franchise
•  Includes ample time for Q&A and discussion
•  The franchise operations manual and the training curriculum complement each other.
•  Franchisor trainers are experienced, knowledgeable and credible.
•  Includes simulated and/or on-site location training to impart ‘real world’ experience
•  The training is long enough to provide sufficient time to learn the necessary business methods and requirements, while avoiding information overload
•  Measures trainee comprehension to insure that franchisees understand and learn what is being taught. This could consist of follow up discussions at end of each training session.
•  Utilizes role playing when appropriate

Franchisee training must be carefully designed, constructed and presented in order to maximize the learning experience of new franchisees. Training results should be measured so that enhancements can be made when needed. Franchisors should utilize an individual with proven training skills to administer the training program. Using an existing staff member who doesn’t possess the required training tools may prove costly in the long term.

© 2010 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com