new franchise training

Franchise Training Programs – the Basics

By Michael H. Seid, Managing Director, MSA Worldwide

Why do Franchisors Provide Training Programs?

The goals of any great franchise system are to achieve consistent, sustainable replication of their brand promise to consumers, and for the franchise system to be financially successful at every level. Training is a major component of achieving that goal.

Even experienced operators coming from other, similar franchise systems or independent operations require training in a new franchise system. The reason is that while one franchise system may look similar to another, the following can all be different:

  • franchise company culture
  • how it markets its products and services
  • how it is positioned to consumers
  • the franchised brand standards
  • methods of preparing products
  • types of services
  • procedures and requirements
  • site selection and development
  • suppliers
  • POS and IT systems
  • franchisee support

Making sure that everyone in the franchise system understands how the system is supposed to operate is important to the success of both the franchisor and each of the franchisees.

Who Will the Franchisor Train?

Each franchise system is different, and who they are required to train will be specified in their disclosure documents and franchise agreement.

Generally, franchisors specify that they provide initial training for a set number of people for each franchise. While the number will vary depending on the franchisor and the industry, initial training usually includes the Franchisee and their Unit Manager.

More sophisticated franchise systems will also include a train-the-trainer program for the franchisee and, if the franchisee is employing a trainer, that person will be required to attend. In addition, if the franchisee is a partnership, a developer, or if the person responsible for the franchise is someone other than the franchisee, often a franchisor will require that the franchisee appoint an Operating Principal responsible for the relationship with the franchisor.

If that person is different than the franchisee, the franchisor will require them to take and complete training.

It is in the franchisor’s and your best interest as a franchisee to have as many people from your team trained directly by the franchisor. Generally, where there is available space in training, you can negotiate with the franchisor for them to train additional people at a nominal if any cost. You will of course generally need to pick up all of the travel and related costs for you and any of your personnel attending any training.

Where, When and How Long is the Initial Franchise Training?

The disclosure document you will receive from the franchisor will provide you with information about training, where it will be conducted, who will be responsible for conducting the training, and its duration. An outline of the subjects that are included in training are also included in the disclosure document.

Most franchisors provide both classroom and on-the-job training, usually at their headquarters or another training site.

The length of training can vary from a few days to many months, but for most franchisors is usually between one and four weeks. Initial training often is conducted within a few months of the franchisee’s anticipated opening date.

Some franchisors will begin training almost immediately after signing the franchise agreement, on site selection and development. This is the first major item the franchisee needs to be working on, as the franchise agreement generally provides for dates that the site must be identified, the lease signed, and the unit developed for opening.

As technology changes, franchisors are taking advantage of pre-training modules the franchisee can complete at home. These modules may be provided electronically on the franchisor’s intranet site, or on a disk. Often the franchisee may also need to take and complete classes and certifications provided by third parties before they attend the franchisor’s initial training.

For the initial training provided by the franchisor at its headquarters or other training location, not all participants may attend the same training. Some modules may be specific for the franchisee and operating principal, while training for the unit manager may focus more on operational issues. Many franchisors, however, require everyone to attend and complete all training to the franchisor’s satisfaction.

In most franchise systems, if pre-training is required, the franchisor generally will require you to show that you understand the material provided. If not, you may be asked to leave and return when you are better prepared. That additional training may come at a cost to the franchisee. When you attend training, in most franchise systems, if you do not complete training to the franchisor’s satisfaction, subject to retraining or training of a replacement person, the franchisor generally has the right to terminate the franchise relationship at that time. It is therefore important as a franchisee to understand the importance of training to the franchisor and that it is necessary to be completed.

Additional Training

It is fairly common for the franchisor to have one or more of its staff assist the franchisee during the opening period to help them stage the business, and to assist the franchisee in training their own staff.

In the past, the franchisor’s opening team trained the franchisee’s staff directly; however, more and more franchisors are now assisting the franchisee as they train their personnel and making certain that the franchisee is able to continue to do so for replacement personnel. The reason for this change is that it is important for the franchisee to maintain brand standards, and being an effective trainer enables the franchisee to meet that goal.

Do you have questions about franchise training programs or operations manuals?

MSA Worldwide provides expert guidance on providing franchisees with the information they need to train their teams to deliver your brand promise to customers. Contact us today for a complimentary consultation.

Get Strategic Advice

Franchise Training Programs FAQ

Franchise training is the structured program a franchisor uses to teach franchisees how to operate the business to system standards with their staff. Good training is built around the franchisor’s operations manual (also called a brand standards manual) and covers operations, customer service, financial management, marketing, technology systems, and the brand standards franchisees must maintain. The objective is consistency  –  every franchise location delivering the same customer experience, regardless of who operates it. Training is not optional or one-time. Franchisors who treat initial Franchise training as the whole program rather than the beginning of an ongoing relationship typically end up with franchisees who drift away from the system.

A comprehensive franchise training program includes initial training at the franchisor’s headquarters, on-site training at the franchisee’s location during opening, ongoing training as the system evolves, and employee training that franchisees adapt for new staff hired after opening. The content covers operations and standard operating procedures, the franchisor’s technology and reporting systems, customer service standards, marketing execution at the local level, recruiting and hiring staff, financial management and reporting, and legal compliance specific to the franchise relationship. Training duration and other requirements are disclosed in Item 11 of the Franchise Disclosure Document and in the Franchise Agreement.

Initial franchise training typically runs between one and six weeks, depending on the complexity of the business. Restaurant and food service franchises usually require the most training time  –  from three to eight weeks in total. Service-based and home-based franchises generally require less, whereas healthcare franchises require more. Initial training is usually split between time at the franchisor’s headquarters or training center and on-site training at the franchisee’s actual location during the period before opening. Completion of online pre-training assignments is often required before attending in-person training. The specific duration for any system is disclosed in the FDD. Franchisors who shortcut initial training to attract franchisees typically pay for it later in support costs.

Initial training for the franchisee and their key managers is typically included in the initial franchise fee. Travel, lodging, and meals during training are usually the franchisee’s responsibility. Training for additional staff hired by the franchisee after opening may carry separate fees, particularly for specialized roles or recurring training programs. Some franchisors charge for refresher training, advanced training, or training tied to system updates. All training fees, both included and additional, must be disclosed in the FDD. A franchisee evaluating a system should understand exactly what training is included in the franchise fee and what is billed separately.

The operations manual (also called a brand standards manual) is the foundation of the training program. It documents how the franchised business is run  –  the procedures, standards, and tools the franchisee uses to deliver the brand experience consistently to customers. Training translates the manual from a reference document into the franchisee’s working knowledge. A well-written operations manual makes training shorter and more effective. A weak or out-of-date manual makes training harder and creates inconsistency across the franchise network. For established franchisors, regularly refreshing the operations manual to keep it aligned with changes to the franchise system is one of the highest-leverage investments in system quality  –  it improves training outcomes immediately and improves brand consistency over time. Note that the operations manual is typically a library of manuals, depending upon the type of business, rather than a single manual.

The clearest measures of training effectiveness are operational, not academic. Did the franchisee open on time? Did they hit their first-90-day operational targets? Are their compliance scores consistent with the system average? Are they retaining staff? Training programs that produce well-prepared franchisees show up in these numbers. Many franchisors also use competency assessments at the end of initial training, and track franchisee satisfaction with training as part of the franchisor’s ongoing relationship management. The franchisors with the strongest systems treat training assessment as a continuous feedback loop, not a one-time event.

Ongoing training is the program of continuing education a franchisor provides to franchisees and their staff throughout the term of the franchise agreement. It addresses system updates, new products or services, regulatory changes, technology rollouts, and emerging best practices identified across the network. Ongoing training may take the form of in-person regional meetings, annual conferences, online modules, field consultant visits, or required refresher courses. Without an ongoing training program, even a well-trained franchisee candrift from system standards over time. The franchisors with the strongest unit economics and longest franchisee tenure invariably have the strongest ongoing training programs.

The franchisee is responsible for hiring, training, and managing their own employees. The franchisor’s role is to provide the franchisee with the tools, materials, and methods to train their staff to system standards  –  typically through the operations manual, train-the-trainer programs, online learning modules, and ongoing support. This division of responsibility is important: the franchisor controls the standards, but the franchisee controls their workforce. Some franchisors provide direct training to franchisee staff for specialized roles, but the day-to-day training of front-line employees is most typically the franchisee’s job, executed using the franchisor’s tools.

Similar Posts