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Should franchisees pay for their training?

Sarah Stowe

One of the attractions of a franchise system for a new recruit is the promise of training that not only helps franchisees set up and understand the operating structure of their business, but guides them in building a strong, wealth creating enterprise.

But should franchisees have to pay for their training separately from the franchise fee, or can training be considered an essential part of the ‘all-inclusive’ business package?

There is certainly an argument for cost transparency which means incoming franchisees can see where there money goes.
Corinne Attard, partner at Holman Webb Lawyers in Sydney, says “An existing franchisee may not require the full training so the training fee can be tailored to suit. If more training is needed it can also be justified and charged for accordingly. It is more transparent which has to be for the benefit of both parties.”
Vivienne Beech, the Gold Coast franchisor of Resort Room Coffee, says “Personally I feel franchisees take more responsibility for learning systems and implementing them and the role they play in getting results when they pay for the training and a value has been placed on this training.”
But could a franchisee justifiably feel they are paying extra for something that should be integral in the franchise fee?
“It may depend on the cost of the franchise, the higher the cost the more they may want it all included,” says Beech.
Full House Group licensee Tracy Richardson says “I believe start-up training should definitely be included in the cost of the franchise. This is what a franchisee purchases: a proven business model that they need to learn and understand. This, to me, is definitely part of the purchase.”
Richardson, who operates her license in the Sydney area, believes that ongoing training should also be included but the inclusive packages shouldn’t extend to specialist skills training.
CASE STUDY: POOLWERX
A brand new training centre gives the company a significant boost by providing a greater depth and breadth of hands on training for franchisees and staff, says Ian Jenkins, PoolWerx learning and development manager.
Training is included in the total entry fee to join the Poolwerx system and is costed so franchisees can account for it appropriately in their first year of business.

Q: How much time is spent on training in the beginning?
New franchisees undertake a three week training program at the recently opened world class Global Support Centre. Known as Pool School, this program offers everything from practical and technical training in pool maintenance through to retail training in sales techniques, merchandising and POS management, and formal business skills training. 
Following this, the company offers 16 hours of online self-paced pre-learning as part of its Forming Good Habits program in the first few months of trading: this also includes field visits from the business development manager.

Q: What about the costs of ongoing education?
Franchise-specific training is provided throughout the year as part of the overall offering at no extra cost. This includes access to Pool School, Winter Workshops, online training modules, one-on-one field training with field staff and technical advisors. Product-specific training is also offered during monthly business meetings and via online modules as and when products are brought to market at no additional cost.
If a franchisee wishes to send a team member to any part of the Pool School induction training (held every quarter), there is no additional cost to do so except for personal travel and accommodation.
“Every year during our quieter months (May to July), we offer franchise partners and staff our Winter Workshops program, which involves an in-depth one day training program in each state covering specialist product, marketing, software and business training modules. Again, the only cost is accommodation and transfers if required,” explains Jenkins.
“We also have an annual three day convention in August which is arguably the biggest information sharing and learning opportunity for our entire network. The fee for attending these events is subsidised by half through utilizing our partners and suppliers.
“This past year we have sourced Federal Government funding to assist our Franchise Partners to receive the industry’s new qualifications, Certificate III and Certificate IV in Swimming Pool and Spa Care Service.”
With the two-thirds Federal Government contribution, Certificate III costs franchisees $500 and Certificate IV costs $510 The full cost for RPL (Recognised Prior Learning) is $1800 for a Cert III and $2000 for a Cert IV. State (Queensland only) Government contribution of 50 percent means new and existing franchisees and pool technicians can receive the Certificate III for $250 from July 1.
Has the amount of training provided increased in recent years?
“Yes, particularly around our specialist CRM software – Evosus. This entails one-on-one training sessions, live group webinars, recorded training videos, onsite training and involvement at business meetings – all at no additional cost. Training manuals are shared with franchise partners and staff for further instructions on how to use the system.”
The Datamate water testing software was recently introduced to the network with training delivered through the retail executive and supplier. This is done through business meetings and in-store at no additional cost. The training involves how to use the software, how to prepare and analyse the reports for clients. Software updates and training are shared with franchisees through group forums.
“We also have a variety of digital online marketing platforms that help make LAM easier. To support this, we have a free online learning management platform to aid in the management of this important part of our franchise partners’ businesses.”
Will the creation of the training centre mean an increase in this element of franchisee support?
The opening of the new training centre coincides with Poolwerx’s Federal and State (Queensland only at this stage) funding for the delivery of the Certificate III and Certificate IV in Swimming Pool and Spa Service qualifications.
“We are now able to offer new and existing Franchise Partners the best training on offer in the industry and a nationally recognised certificate, giving them a huge lead in the marketplace at the start of their journey.”