In the US, the business failure rate is near 20% in the first year. This means that one in every five new businesses will close its doors after the first year of operation. Considering the first five years, this number can go up significantly, with a failure rate of 50%. These numbers show that starting a brand new business can be challenging.
The good news is that those who want to get their foot in the door with business but want a simpler way can start a franchise. Franchising is a popular business model for entrepreneurs who can’t afford the risks associated with building a brand from scratch. When starting a franchise, you’ll get training on everything you need to start your business operation.
This training can be the difference between success and failure. In this article, we’ll show you everything you need to know about training for franchisees and why it’s the key to franchise success!
What Is Franchisee Training?
A franchise is when a company wants to expand but doesn’t want to build new stores in new locations themselves. The franchisor will give the franchisee what he needs to get the business up and running in exchange for an initial franchise fee and royalties.
The franchisee will get training in the initial stages to help them start their operation. It is often in-person at the franchisor site. This training will depend on the type of business — and it must include everything necessary for the operation’s success.
For example, when you go to a Subway restaurant, you’ll see the employees offering the same food prepared in the exact step-by-step process. All these processes are learned via franchisee training before a franchise starts to operate.
The training will also cover other aspects of business that customers can’t see, such as:
- Marketing and advertising
- Business systems
- Strategy and planning
- Recruitment and employee management
- How to deal with suppliers
Why Does Franchisee Training Matter?
Franchisee training matters because it will help the franchisee navigate the difficulties of starting a new business.
Learning about marketing, recruiting, training, and operation standards without any direction can lead to overwhelm and failure. The franchisee training will teach all the ins and outs of the business model and can cut years off his learning curve, which can be the difference between success and failure.
But the franchisee isn’t the only one who benefits from the training; providing this training is also in the franchisor’s best interests.
For the franchisor, it’s important to maintain the consistency that customers expect from the brand. When you go to Mcdonald’s, Subway, or Burger King, you know exactly what you want to eat. Imagine visiting one Burger King restaurant and finding a completely different menu. The brand would lose reliability, as customers wouldn’t know what to anticipate from location to location.
Letting the franchisee deviate from standard practices can also cause damage to quality control. If the brand doesn’t enforce all the important practices, it can damage the brand image.
How Does Ongoing Training for Franchisees Make a Difference for a Business?
The initial training will get the franchisee habituated with all the standard practices. Plus, it will teach them everything they need to know about the business model. But future ongoing training is vital so that the franchisee can achieve higher levels of growth and prosper in the long haul.
After learning all the ins and outs of franchise practices, training covering high-level business strategies is necessary. And ongoing training can go way beyond the information covered initially.
The ongoing training can cover topics such as:
- How to build a better and stronger team
- How to better manage time
- How to develop a better mindset
- Leadership skills
- Delegation skills
- Best practices that are being developed
- How to manage money
- Strategic planning
Three Franchisee Training Best Practices
The franchisor must organize the training in the best way possible to ensure the success of the franchisee. This means developing informative and interactive training that includes all the essential information. This is the blueprint all future franchisees will be following
As you can tell, the initial training will happen at the beginning of the process, before the franchisee even starts their operation. This training teaches all the operations standards and business practices to ensure the franchisee can replicate the business model.
In some cases, online training for franchisees can also be available. Online franchise training helps the franchisor cut costs and is exceptionally convenient for franchisees, as it eliminates the need to travel to the city where the training will occur.
- On-Site Training
Theoretical knowledge is critical, but it is only the first step. In many cases, it’s important to have firsthand experience and see in the real world how everything works. And on-site training is just that.
On-site training is conducted in a franchise or specific location designed for the training. The goal is to teach how everything works in practice.
This type of training isn’t always available. Ultimately, it’s the business model that will dictate it. Some types of business will need practice, while others won’t.
- Ongoing Franchise Training
The onboarding training will equip the franchisee with everything they need to learn to succeed in their operation. But continuous learning is fundamental for achieving high growth levels and overcoming plateaus.
Ongoing training is when the franchisor offers training after the initial period. It usually covers advanced and high-level business practices. Plus, ongoing training is needed to show the franchisee the new practices in development.
What Types of Training Are Best?
The best types of training will depend on the franchisor and franchisee’s specific needs and goals, but all three types of training have value.
The best-case scenario is a combination of all three:
- The initial training teaches the franchisee everything they need to start the operation
- They get hands-on experience with the on-site training
- They get a continuous learning experience with the ongoing franchise training
Ongoing Franchise Training vs. Onboarding-Only Training
Onboarding training is the upfront training you need to start running a franchise, while ongoing training keeps your knowledge and skills up to date with current best practices. Franchises should provide both for the best results. Just think — when you only receive onboarding training, you’ll learn the basics you need to start operating, but your learning will be limited, and your growth may be stunted.
Leverage the Power of LearningZen With Ongoing Franchisee Training
Franchisee training is essential for the health, growth, and success of a franchise. LearningZen is a powerful learning management system with an intuitive interface, customization features, and powerful analytics that can help franchisors deliver effective franchisee training. It enables franchisors to create engaging and relevant training content that aligns with their brand standards and business objectives. By leveraging the power of LearningZen, franchisors can ensure their franchisees have the skills and resources they need to succeed and grow their business.
Visit our website to discover how our Learning Management System for Franchises can help you scale your franchise today.