Sunday, 18 March 2018

Franchisee Training

Lecture theatre, learning, training, studies, university
One aspect prospective Franchisees should investigate as part of their due diligence is the extent to which they will be provided with training by the Franchisor.

Training is typically broken up into:
  • initial training; and 
  • ongoing training. 
This training might be broken down into smaller segments based on the specific task to be learnt, such as:
  • corporate history and philosophy; 
  • pre-opening procedures; 
  • daily operations; 
  • insurance requirements; 
  • reporting requirements; 
  • stock control; 
  • point of sale; 
  • product placement; 
  • converting leads to sales; 
  • financial management; 
  • marketing and advertising; 
  • etc. 
The training program adopted by the Franchisor to educate their Franchisees should ideally be backed up by either a specific Training Manual or incorporated as one or more sections in an Operations/Procedures Manual.

It is also necessary to clarify where the training will be delivered. Is it to be conducted at the Franchisor’s head office, on-site or at some other training venue (or some combination of these.)

Another element is to determine how the training will be provided. For example:
  • formal lectures in a classroom style; 
  • videos; 
  • webinars; 
  • written material;
  • hands-on work; 
  • Franchisor assistance at the Franchisee's location; 
  • attending at another Franchisee's location to see how things are done;
  • etc, 
or a combination of these.

A further consideration is the training conducted by Franchisees with respect to their own employees. How is this to be done ?

Franchisors can utilise regular regional or national franchise conventions/conferences as a means to provide ongoing training.

Franchisees should also consider general business, management and industry specific courses, outside of the training the Franchisor is offering, to help the Franchisee to become a successful business operator.

Prospective Franchisees should check the costs to be imposed by the Franchisor in respect of its training. Sometimes the initial training costs are incorporated as part of the Franchise Fee, but that may not always be the case. There are also the costs of ongoing training to be clarified.

It’s important for prospective Franchisees to check the Franchise Agreement and verify with the Franchisor:
  • what training will be provided; 
  • where it will be conducted; 
  • how it will be delivered; 
  • when and how often will training be provided; 
  • the costs of the training; and 
ideally obtain a copy of the Training Manual or Operations Manual and review it before signing the Franchise Agreement.

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Disclaimer

The material provided in this document is for general information only and is not to be relied upon as advice. No responsibility is accepted for any loss, damage or injury, financial or otherwise, suffered by any person or organisation acting or relying on this information or anything omitted from it.

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