follow us on twitter @EliteFranchise find us on facebook connect with us on linkedin 

Franchise Opportunities           

The impact of franchisee training and employee development

Written by Paul Hansen on Monday, 01 March 2021. Posted in People, Finance

Every franchise system revolves around the quality of its franchisees and the decisions they make in their business.

The impact of franchisee training and employee development

Every franchise system revolves around the quality of its franchisees and the decisions they make in their business. The attitudes of the franchisee toward their business tends to play a significant role in their decision-making and performance, so it’s important that the relationship between the franchisor and franchisee is committed to fulfilling both the business and personal development objectives of the franchisee.

This idea is not exclusive to the relationships between a franchisee and their franchisee – the way, for example, you and I may feel towards our employer can carry a great deal of importance when we make decisions, so this may ultimately contribute towards how well you perform for the business.

In contrast to a privately owned business, franchisees operate within a proven business model, a framework that has been tried and tested by the franchisor. Franchisees contend with work within the restrictions of franchisor controls, contractual specifications and financial costs as part of their respective brands operational process. More specifically, franchisees must manage their businesses according to the franchisors operating manual regarding product, process, promotions and quality standards while agreeing to pay a proportion of their income in the form of management service fees and marketing fees to the franchisor. These compromises are inherent with starting a franchise business and are made in exchange for the ability to operate your business within an established brand, a proven business model, and with the support services provided by the franchisor. When you look at the numbers of franchisees who fail within their first year of trading (around 1%, bfa Natwest Survey 2018), these compromises are small and provide you with a platform to be your own boss with a greater potential to succeed. 

However, the platform is not enough on its own to ensure success; to reach their full potential, a franchisee must have the skills and attitude to succeed. It is important both the franchisee and franchisor identify factors which influence franchisee performance; one of these factors is good quality and regular training. The support services provided by the Franchisor may include training for the Franchisee, but there are services outside the franchise network which are available too. Franchisees who continually undergo management training, sales training and financial training finding better ways to run their business tend to thrive and remain in a network for longer. Continuous personal development is a crucial way to satisfy the appetite for knowledge and growth of a franchisee.

Quality and regular training only starts with the franchisee. Training needs to be extended out to employees, whose performance impacts the brand reputation and ultimately client satisfaction and retention. It is extremely important to ensure employees continue to feel like they’re developing; it impacts directly on their job satisfaction and ultimately how they interact with their customers. 

Investing in training is extremely beneficial to both the franchisor and franchisee. If you can minimise the rate of staff turnover with high performing employees, it can be far easier to manage and predict labour costs to maximise revenue whilst ensuring you deliver an exceptional customer experience.  Everybody can win if the positive attitude towards training starts from the top and is provided across the whole network at all levels.

Training extends far beyond teaching your franchisees the basics. Continuous improvement of your franchisees and your employees is the lifeblood of your network and  can significantly impact the growth and performance of your franchise. Investing in good quality, relevant training will ensure you have highly skilled franchisees and a committed and passionate workforce.

The last 12 months have been incredibly difficult for everyone. One thing that has kept me positive is the passion and determination of my team at Hitachi Capital Franchise Finance. Like your teams and employees, they have worked tireless in challenging circumstances to support our customers. Be sure to invest in their development as good people are incredibly hard to retain and even harder to find if you have to replace them.

About the Author

Paul Hansen

Paul Hansen

Paul has headed up Sales and Marketing for Hitachi Capital Franchise Finance since January 2018, playing a key part of the integration of Franchise Finance into Hitachi Capital (UK) PLC.

Paul has worked with franchise brands for over 20 years.  Having worked in financial services since the early 1990’s, Paul is a well-known face within the UK Finance and Franchise industries, attending, supporting and speaking at many industry events and conferences each year. 

Strategic Media Partners