Evaluating
a Franchisor’s Support and Training
System
It’s very important, as you search
for the franchise that best suits your
strengths and financial goals, to not
overlook the importance of finding a
franchisor that offers the kind
of training that will support you to
success. Whether you are a seasoned
business owner or a new to the scene
franchisee, adequate training is imperative
to your success. From the franchisors
perspective, training franchisees well
is the best way to ensure the uniformity
and integrity of their product, brand,
and/or name.
Many
people choose a franchise as their business
venture, because it already has a tested
and tried formula for success.
People who choose franchising over starting
their own business from the ground up,
recognize that some of the risks involved
with starting an independent business
may, for some people, outweigh the desire
to build that business.
Franchising is an excellent answer for
these people. It is important, when
engaging in the franchise training,
that you take as much from that training
as you can.
Take lots of notes, ask as many questions
as it takes to fully understand, and
most importantly, BEFORE you choose
the franchise you will buy, make sure
you research the structure and availability
of the franchisee training!
When
doing your due diligence, keep in mind
that the great majority of what you
will be paying for, is the training
and the manual for business. In essence,
you are paying for the benefit of their
experience, and it makes sense to thoroughly
investigate this part of your investment!
The
first thing to consider is the franchisor’s
training manual. Ask to see sample manuals,
so that you can be sure that all aspects
of the business and its concepts are
thoroughly explained, and that it is
presented in a way that communicates
clearly to you.
Since the manuals often contain material
and information that is confidential,
many franchisors will not allow you
to review them until after you have
purchased the franchise.
If this is the case, ask to see the
table of contents. This will provide
you with some idea of what topics are
contained in the book, and how it is
approached.
Whether the franchisor has opted to
create one large volume as its manual,
or several separate notebooks, there
are several key elements to be sure
are present:
1)
Selecting a site: Be sure that the specific
requirements for an approved site are
included in the book, along with a specific
breakdown of the franchisor’s
role in the selection process. There
should also be several forms included
to help you assess potential locations.
2) Grand Opening/Start-up: Be sure that
you ask about the franchisor’s
support regarding build out and using
contractors. Does the franchisor offer
a list of recommended contractors? There
should also be a detailed list of everything
from materials and specs required to
build the franchise location, as well
as recommended or required manufacturers,
machines required and a recommended
timeline for completion.
3) Operations: The operations manual
should contain the important information
about what services can be offered,
hiring, policies, procedures, job descriptions,
performance standards and job descriptions.
It should also contain any other critical
information on the operation of your
franchise.
4) Finance: This section should offer
guidance on the business metrics, reports
the franchisee will need to give the
franchisor, and similar details. It
should very clearly define the financial
aspects of the relationship between
the franchisee and the franchisor, including
any fees based on sales.
5) Marketing and Advertising: It is
important to understand the role the
franchisor plays in the local marketing
of your franchise. Ask what part the
franchisor plays, and any sample ads
or approved campaign materials.
Training
for you as the new franchisee.
It’s
very important when determining the
competency of the training support offered
by a potential franchisor, to not overlook
the initial training offered to new
franchisees. Here are some things to
pay close attention to when making this
determination:
Firstly,
be sure that those teaching the training
are experts on the area of the system
they are teaching! It’s easy to
assume that a teacher assigned by a
franchisor would have experience with
the system, but the truth is that many
franchisors hire an outside trainer
or ask a member of their staff, that
has no franchise experience, to teach
the classes! Ask for qualifications,
and the follow them up.
Ask
how long the duration of the training
is, and where the training will be held.
Some franchise training programs offer
hands on learning in a franchise, and
then classroom time as well. Others
are just based in the classroom, often
at the headquarters or a training facility.
Training
that is a week or more long can often
provide you with excellent training.
However, if family commitments or other
factors keep you from having the time
to commit to such a lengthy training,
then it’s a good idea to consider
whether this franchise opportunity is
the best choice for you and your family.
Training
for your employees and personnel.
Don’t
forget to ask about training provided
by the franchisor, to the personnel
in your location. It’s important
to consider that no matter what your
staff does, from styling hair to wrapping
a burrito, where/how will they learn
to do this?
If
you are responsible for the training
of your own personnel, which is very
common, then ask what materials are
provided to aid you with the training.
Will you receive a manual, DVD’s,
study aids, or on screen cues that come
up at the point of sale?
Find
out what role the franchisor’s
staff will play in the training. Will
they come to do new product demonstrations?
If they offer field training, ask where
it is held, and how often you can expect
it.
You
should also find out whether there is
a local facility for training your managers…
If you will need to send them to a training
facility, be sure to include those costs
in your initial business plan.
Unit
manager training is also important to
consider. The most critical component
in your franchise’s success, after
your choice of location, is hiring and
training your unit manager. It’s
important to remember that many managers
are simply promoted from employee, and
many have no managerial training. It
is very important to train your managers
thoroughly, since it is key to your
franchise’s success!
As
a note: Find out if any statistics are
available on the employee and managerial
turnover rate (average) for this franchise.
It’s important to remember that
training does require valuable time,
finances, and resources-knowing how
often you should be prepared to do this,
will give you a more accurate way to
budget for it.
Some
franchisors will not offer training
materials for the individual units.
If training is not an area of strength
for you, you should consider planning
for the cost of an outside training
system so that this critical point is
not short-changed in your day to day
operating costs. If you budget ahead
of time for these things, it will save
you a great deal of difficulty later.
Finally:
Be sure to ask what type of ongoing
training is provided, as well as any
support offered after the initial training
period. If you are new to franchising,
you may not want to have a week’s
worth of training, and then be sent
out on your own! It is important to
be sure your support network is viable
before making such a large commitment,
and a critical component of this network
is the training and support offered
by the prospective franchisor.
