A major attraction to investors interested in franchising is the provision of initial training, ongoing support and guidance from the franchisor. The level of training provided differs widely from a basic induction programme to a comprehensive technical and practical training, both classroom based and in the field. Franchisees need direction and want to be provided with the tools to allow them to succeed and a platform which to build on.

In some cases franchisees are required to undertake research and homework including reading the operations manual before initial training commences. It is likely that training will be intensive and expect to study during the evenings outside the classroom environment. Training maybe on a residential basis and if so you should establish who covers the cost of travel, hotel and food etc. Training may be a significant portion of your initial franchise package fee investment.

The franchisor should make it quite clear to prospective franchisees what they expect of them in terms of business growth and only recruit those who share their aspirations. Investors may have little or no experience of running a business therefore training and continuing support is essential. It is often difficult to get the franchisee to commit time for training once the business is up and running especially if the business is dependent on their presence. Ongoing training and development programmes will over time benefit the franchisee’s business and they should adopt a longer term view making themselves available when required.

Franchisees will require more support in the early days establishing their business however they should also expect guidance and support from the franchisor throughout the life of the business. Franchisees may start to resent paying the management service fees to the franchisor if they do not feel that they are getting value for their money. Each individual franchisee will require differing levels of support. Let’s face it the skills and experience of a group of diverse franchisees will be varied and one size doesn’t fit all.

The franchisor should maintain regular contact to update the franchisee on changes in systems and to share best practice. The franchisee should also expect the franchisor to develop the brand value together with new and existing products and services you offer your customers. Providing a variety of training programmes for their franchisees once they are established is important. However, expect to be asked to cover the cost of any refresher or development training. Updates and developments can be shared through newsletters or e-mails. Regular meetings with other franchisees in the network are beneficial to understand the issues impacting on their businesses and an annual conference can also be a useful gathering of minds.

Some franchises have development managers who provide practical advice and developmental support through regular field visits. These meetings can provide useful insight to how you are performing from someone who has a good understanding of the business model and who can look objectively at the progress you are making. The development managers are likely to have some audit responsibilities to ensure that you are following the systems and operating the business in accordance with the manuals and franchise agreement.

If there is one set up it is likely that there will be limits to the authority that a franchisee advisory council will have, however it does give the franchisees a voice and an opportunity to meet with the senior members of the franchisor’s team to discuss important issues they are facing. The council should work for the good of the whole network with members being elected by the franchisees to liaise with the franchisor on their behalf.

What can you do if you feel that the franchisor is not meeting their obligations? For British Franchise Association member franchises there are guidelines for their conduct. The bfa oversees franchising in the UK and publishes a Code of Ethics for its members to comply with. Member franchises are subject to a comprehensive accreditation procedure to ensure that high standards are achieved before entry and thereafter maintained. The bfa also offers a dispute resolution service.

The principles outlined in the Code of Ethics should be adopted by all of their members although non member franchises fall outside the bfa’s sanctions. When you are researching various franchise opportunities bfa membership provides some comfort to the investor although will not guarantee the success of a business. Member franchisors should provide their franchisees with a copy of the Code of Ethics on joining although it can also be found on www.thebfa.org

About the Author

Richard heads up the Lloyds TSB franchise team and is a regular contributor to trade publications and national press. He is on the panel of judges for the prestigious Franchise Marketing Awards and regularly speaks at franchise seminars and exhibitions. Lloyds TSB is an affiliate member of the British Franchise Association and is proud to support the growth of ethical franchising in the UK.

Richard Holden
Lloyds TSB Franchise Unit
Tel: 0117 943 3089
Email: richard.j.holden@lloydstsb.co.uk
Website: www.lloydstsb.com