TRAINING: THE BACKBONE OF FRANCHISING

When the economy is pinched and competition is fierce, training is not an area that franchisors should skimp on. At such times, outperforming the competition could be the key to success and it is imperative that all aspects of the business are operating optimally. 

Franchisees are the customers of the franchise network and in order to provide them with the most effective service possible, head office staff must be well-versed in the best practices of the business system. It is the duty of the head office and field team to manage the sensitive relationship with franchisees and to provide them with the support, tools and information needed to steer their businesses on the right course. A progressive franchise will keep their franchisees abreast of new operational efficiencies and technological innovations within the franchise system. Franchisees on the other hand have a responsibility to comply with the operational format and best practices advocated by the franchisor. 

Brenda Macqueen, an experienced and distinguished franchise training facilitator agrees, “There can be no doubt that training is a fundamental aspect of any franchise system. This includes the initial training as well as the training provided on an ongoing basis.” She further states that, “Success in franchising lies in the ability of the knowledgeable and experienced franchisor to transfer the necessary skills to an inexperienced franchisee.” 

Franchisor training programmes should go beyond the operational training necessary to run the franchise to include such aspects as business management and financial skills training. Where franchisors are unable to provide the non-operational training themselves, they should consider outsourcing the function to a reputable service provider until such time that the economies of scales justify full time resources. Some franchisors will engage with suppliers and other external facilitators to ensure their franchisee training programme is fresh with a good mix of trade experts. Training programmes should also include a balanced mix of both comprehensive classroom and theoretical training as well as on-the-job operational and technical skills. On-the-job training should be structured — merely shadowing an existing franchisee is not always sufficient practical training. On average, a good training programme for new franchisees lasts three weeks and is then supported by regular ongoing training. 

Of all the elements that can be most problematic for franchisees, a sound understanding of business management principles and financial management are the most severely neglected. It is imperative that every franchisee is able to manage the cash flow cycle, balance the debts of starting up a business, and keep accurate and timely financial records in the process. A franchisee that does not understand the difference between cashflow and profitability, or that cannot distinguish between or interpret an income statement and balance sheet, is in deep water before the business has even opened its doors. It also makes the job of the franchisor far more difficult over the long term; training a franchisee on basic financial skills at the outset is far more cost-effective than having to engage a comprehensive ‘intensive care’ programme when the business is in hot water. 

Franchisors who offer relevant regular ongoing training are much better at maintaining the standards and integrity of the brand. It also provides a forum where the franchisee and franchisor can work together and develop their relationship. For franchisors who battle to entice their existing franchisees into their ongoing programmes, there are a few searching questions to be answered —

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