The Ultimate Guide To Franchisee Training

The Ultimate Guideto Franchisee Training

CONTENTS123589It’s a Good Time to Be in the Franchise IndustryTraining Is Critical to the Long-Term Success ofa Franchisee Operation“But We Already Provide Training!”: Why Your ExistingFranchisee Learning Program Is Isn’t EnoughThree Elements to a Successful Franchisee Training ProgramGetting StartedAbout Cornerstone OnDemand

It’s a Good Time to Bein the Franchise IndustryAccording to International Franchise Association, franchises in the UnitedStates in 2017 will once again outpace the overall economy. In fact, thesector is expected to grow by a whopping 36 billion. And a 1.6% increasein establishments will provide more than seven million jobs, a 3.3% uptickfrom 2016.1Yet despite this good news, not every franchisor experiences long-termsuccess. In a 12-year study of 157 franchise organizations, business andeconomics professor Scott Shane discovered that only 25% of franchisorssurvived during that period.2 While the study was published in 1998, thestatistics are similar today, if not worse.What then separates the successful 25% from the three-fourths who don’tmake it? Creating a franchise organization with staying power, one able towithstand economic fluctuations and fickle customer demand, requiresmore than a beloved product, diehard customers, or even clever marketing.The real key to creating a successful organization is ensuring a consistent,high-quality customer experience every time—and that begins and endswith your franchisees.The real key to creating a successful organization is ensuring a consistent,high-quality customer experience every time—and that begins and endswith your franchisees.As brand ambassadors with skin in the game, franchisees are invested notjust in their own success but that of your organization, as well. Yet thoughthey’ve put cash on the line, purchasing a working stake in your business,franchisees don’t operate in a vacuum. While they bring the motivation,passion, and drive, your organization must nurture and sustain that drivewith resources and training.1

Training Is Critical to the Long-TermSuccess of a Franchisee Operation“The best franchisors are huge advocates of training and invest heavilyin it.”3 – Mark Siebert, author of Franchise Your Business, and CEO of theiFranchise GroupWhile undercapitalization is ranked first as the reason for franchiseorganization failure, a close second is a lack of training and support.4 Butthe case for franchisee training doesn’t end there. In fact, how and whena business develops its franchisees matters. After all, every franchisorprovides some training. But what separates the successful from the ho-humis learning opportunities that expand beyond the initial operational training.A successful franchise isn’t the result of sprinting to the finish line butrunning a marathon. The rewards come, not immediately with a suddenmagical buyout or IPO, but with consistent effort over long periods of time.Thus, training must also be treated as a similarly consistent effort thattakes place over time.The rewards come, not immediately with a sudden magical buyout or IPO,but with consistent effort over long periods of time. Thus, training mustalso be treated as a similarly consistent effort that takes place over time.Training doesn’t just help create a successful franchise and a skilled,engaged franchisee. It also helps attract the right franchisees in the firstplace. Franchise organizations that provide robust, comprehensive,ongoing training are a beacon for committed, motivated candidates.The kind of franchisee organizations want will expect to have accessto training that helps them succeed.2

Research shows organizations also reap measurable business benefits fromexpanding training for franchisees and other external employees. In a surveyconducted by Brandon Hall Group in 2017, organizations that facilitatedextended enterprise learning reported significant changes:53 67 61%met or exceededcorporate objectives%%reduced training costincreased sales59 29%reduced trainingtravel time%reduced turnover5

“But We Already Provide Training!”:Why Your Existing Franchisee LearningProgram Isn’t EnoughContinuous employee training is crucial to creating the modern, agilebusiness. Organizations that implement comprehensive internal employeetraining programs see reduced turnover, higher profits, and more. Yet it’s notjust internal employees who benefit from continuous training; franchiseesdo, as well. Both internal and external employees also thrive on blendedapproaches, as well as development that enables learning on the job whilealso providing on-demand, bite-sized lessons.Yet as external employees, franchisees have additional learning needs. Afranchisee occupies a unique space within an organization: independentyet reliant, a solo operator who is also tangentially part of a tribe. Thus,learning and development must provide franchisees with the opportunityto engage in structured learning, while simultaneously respecting thesemi-independence and self-direction of the franchisee. Separated bypsychical—and psychological—distance from peers who often also playthe role of competitor, franchisees still need opportunities for collaborativelearning and connection.It’s a tall order, further complicated by numerous other factors, e.g., theinvestment levels of different franchisees, numbers of franchises someoneowns, types of franchisee experience (business background, food serviceexperience, etc.), and legal constraints. In fact, these factors give trainingfranchisees more in common with a technology company training itscustomers or an insurance agency training its agents than with internalemployee development. All three face the common challenge of needing totrain a wide variety of learners operating at different levels of independence,while remaining external to the organization.4

Three Elements to a SuccessfulFranchisee Training ProgramExtended, continuous training for franchisees is critical to ensuring franchiseconsistency, quality, and long-term financial success. Yet the training neededis more complex than an initial operations course or yearly conference.How then can organizations create the right kind of training for franchisees?By integrating the three key elements that all successful franchisee trainingprograms share: Learning is continuous and structured to build skills and capacity over time. Learning is just-in-time, asynchronous, and on-demand. Learning is aligned with the franchisee’s goals and the organization’s

1LEARNING IS CONTINUOUS AND STRUCTURED TO BUILD SKILLSAND CAPACITY OVER TIME.Successful franchisee training starts with basic operational skills and buildson those skills over time. In fact, in a profitable franchise operation, trainingnever ends. As franchisees gain experience, training responds in kind.Successful franchisee training starts with basic operational skills andbuilds on those skills over time. In fact, in a profitable franchise operation,training never ends.For organizations, this requires planning with the end in mind, forethoughtas to how to best facilitate a logical skills progression. For example, afterbasic operational skills, franchisees can begin learning soft skills, suchas enhanced communication, leadership, and conflict resolution. Afterboth hard and soft skills are gained, franchisees may then be offeredopportunities tailored to their own goals and talents, such as businessanalysis, expanded ownership, or advanced sales and marketing.2AT THE RIGHT TIME, VIA THE RIGHT CHANNELAfter initial training, franchisees will still need on-the-job instruction, asquestions and challenges will arise as a franchisee adjusts to the realitiesof a new business. Providing resources to answer these questions viatraining that is delivered at the right time is key to maintaining momentumduring the initial—and vulnerable—months of a new franchise. Deliveringknowledge as franchisees need it reduces frustration, sustains engagement,and improves retention.Providing resources to answer these questions via training that is deliveredat the right time is key to maintaining momentum during the initial—andvulnerable—months of a new franchise.Training also needs to be delivered with the right channel. Everyonelearns differently; offering franchisees a variety of learning opportunitiesaccommodates multiple learning needs. For example, training can beprovided within the context of a task to provide reinforcement for that taskor via gamification to stimulate interest and engagement.6

Training that is provided within the context of work is ideally supported withasynchronous learning. When training is available on a franchisee’s ownschedule, anytime and anywhere, franchisees are better able to find thatcrucial work-life balance and manage the stress of business ownership.When learning is bite-sized and on-demand, learning is also better retainedover time.3ALIGNED WITH THE FRANCHISEE’S TALENTS AND CAREERGOALS, AS WELL AS THE ORGANIZATION’S.A franchisee that has mastered both operational and soft skills is atremendous asset. Keeping that franchisee for life, beyond the initialcontract, can yield tremendous financial and marketplace benefits.While extended training functions to keep the franchisee engaged,ensuring the franchisee’s goals align with the organization’s nurturesloyalty and career longevity. Each franchisee has different talents andcareer aspirations. Your franchise organization, while a generalized pathfor success, can also provide tailored opportunities for the achievementof individual franchisee goals.A franchisee that has mastered both operational and soft skills is atremendous asset. Keeping that franchisee for life, beyond the initialcontract, can yield tremendous financial and marketplace benefits.In fact, research by the Brandon Hall Group showed that organizationscan recoup some costs of an extended enterprise technology platformby charging for certain content.At this phase of training—offering franchisees customized learningaligned with aspirations—the franchisor organization can also realize amore monetary ROI. Motivated franchisees are often willing to pay fordevelopment that aligns with individual goals. In fact, research by theBrandon Hall Group showed that organizations can recoup some costs ofan extended enterprise technology platform by charging for certain content.Thirty-percent of respondents in the 2017 Extended Enterprise Learningstudy stated they were able to cover more than 50% of their annual learningmanagement system (LMS) costs via extended learning revenues.67