Training is a fundamental part of the franchise offer, setting the groundwork for a successful franchisee to achieve their goals. But when is it most effective to train new franchisees – before they sign an agreement or once they are on board but prior to their business launch?
The reputation held by fast food giant McDonald’s is fiercely guarded by the global stable of franchisors and franchisees, and the protection of its standards is one reason why the burger business has included training as part of the franchisee approval process.
Registered applicants in the McDonald’s system undergo a nine month training schedule, which franchise development manager Lilian Tartaglia explains is accelerated learning.
“We are very committed to training for registered applicants. We take this part of the process seriously. The training is quite intense and detailed, they take a lot from it. Quite often they are keen to finish sooner but they can’t fast track. This is at least five years’ worth of knowledge on board. It takes them from a crew person to a restaurant manager.
“It’s not an option. It’s really important. We can extend their training if we think fit, if something needs fine tuning.”
Training takes place in both company owned and franchise-owned restaurants. The applicants are assessed on a monthly basis by the registered applicant trainer, and there are quarterly catch ups with other departments.
“It helps is to understand their ability and identify any gaps in our training that we need to address.”
While the trainer monitors the process it is the applicant who drives their own training, and can boost their education above and beyond the required learning.
“It helps is to understand their ability and identify any gaps in our training that we need to address.”
So what’s the dropout rate? It’s negligible says Tartaglia, with the occasional applicant choosing to quit. It is rare for the franchisor to end the training and not continue with an applicant but this can happen if there is a change in the prospective franchisee’s financials.
Why does such an intensive training approach work for McDonald’s? “It works because of the expectations of the brand that we have to maintain,” says Tartaglia. “Hands on training can make a difference; if you’re not in QSR it could be different. We can’t just let people walk in and work it out.
“Any training is valuable. People development is important, you can have all the business acumen but you need to apply it in a new situation.”
Jim’s Group national training manager, Mike Davenport says giving the franchisee as much information as possible allows them to make the best decision – and training is key to this.
“From our perspective, this provides them with as much information as possible to enable them to make the right decision to suit them. Buying a franchise shouldn’t be a decision made lightly and we want that decision to be an informed one,” he says.
“We stand behind our brand and our business model and are more than happy to share it with people. In our initial induction program we focus on delivering everything about our Jim’s System.”
The group founder Jim Penman opens the induction program and shares his ethos with attendees; this includes highlighting the importance of customer service and the brands’ two-hour call back rule.
“We also talk about the important role of the franchisor and how they are integral in helping the new franchisee establish their business. We spend a bit of time also talking about goal setting. This is an integral part of our training program. We introduce our 10 point plan at this point which generates a lot of activity in and around the franchisees business’.”
Davenport reports the sales and marketing session is very well received with its focus on Local Area Marketing ideas that franchisees can do at a relatively low cost in their own territory.
“In terms of sales we try and focus on franchisees’ understanding the features and benefits of the specific division they are looking to invest in. This helps them in delivering the final quotation to their prospective clients.”
A DIFFERENT WAY OF LEARNING ABOUT THE BRAND
Steven Plarre of Plarre Foods agrees there’s nothing like a try before you buy offer but when it comes to a franchise purchase the approach at the chain of Ferguson Plarre Bakehouses is different.
“Ferguson Plarre Bakehouses doesn’t currently offer training to potential franchisees prior to signing the franchise. It’s not because we think it’s a bad idea, it’s just because so far we’ve found other ways to immerse potential franchisees in our culture and process.
“Ultimately it’s important for a franchise buyer to truly believe that the franchisor can deliver on their promises and offering training prior to purchase would, I imagine, assist with this process. ”
But there are a number of other ways for franchisees to build this confidence as well, and they are often less costly both at a time and money level, says Plarre.
“Reputable franchisors should encourage potential new franchisees to meet with and discuss the franchise system, training, support, culture with current franchisees. Being given a mandate by the franchisor to openly discuss the business model with other franchisees makes this a far more open and insightful exercise.
“What’s really interesting about this process is that it works both ways. Through asking potential buyers to speak with our franchisees, we get to ask our franchisees what they thought of them. Your best franchisees can sometimes be the best judge of who should be allowed to join the network,” he adds.
What’s your preference for training franchisees?