Setting up your franchisees for success
Franchising has grown in popularity over the years. Its appeal is compelling, with opportunities to scale, increase revenues and rise brand recognition. But all of this is down to the success of the franchise network. Without successful individual franchises, the network will plummet.
Statistics show that approximately 50% of new franchises will not make it to their fifth anniversary, similar to the failure rate of small businesses. This often comes down to the operational challenges faced by both franchisees and franchisors: franchisees lack the skill set to run a small business, while the franchisor lacks the skills to manage, lead and support its network.
This article will cover how different types of training can be the difference between a franchise network that is profitable, sustainable, and provides a positive experience for franchisees – and one that fails.
What is a franchise network?
A franchise network is a business model where a franchisor grants a franchisee the right to operate a business using the franchisor’s trademark, products, services, and business model.
How do you build a strong franchise network?
Managing a successful business model is not the same as managing a franchise network. Just because someone has grown a profitable business does not mean they have the skill set to train someone else how to do it successfully.
So the million-dollar questions are:
- How do you grow a franchise system?
- How do you attract the right people who will scale your business model?
The key is in these two areas: clear communication and robust support. Let’s dive into how different types of training impact this.
In-person training can provide franchisees with hands-on experience and personal interaction with trainers and fellow franchisees. Effective in-person training can be the difference between a franchisee who is confident and competent in running their business and one who struggles to keep up.
In-person training can provide franchisees with critical information on the franchisor’s systems, processes, and best practices. If the training is insufficient, inaccurate, or poorly delivered, it can lead to a lack of confidence and low morale among franchisees. The result? Higher rates of franchisee turnover, lower customer satisfaction, and ultimately, lower revenue for both the franchisee and franchisor.
#2 Operational training and support
Online training can be a powerful tool for franchisees, but it can also be a double-edged sword. If the online training is well-designed, interactive, and engaging, it can provide franchisees with valuable knowledge and skills.
However, if the online training is outdated, poorly designed, or not user-friendly, it can lead to frustration and confusion among franchisees. This can result in lower engagement with the training, a lack of adoption of the franchisor’s systems and processes, and ultimately, a lower level of success for the franchisee.
#3 Strong Relationships Matter
Hybrid training, which combines both in-person and online training, can provide the best of both worlds. It encourages personal interaction and hands-on experience while also providing flexibility and convenience.
It’s important to note that if the in-person component of the training is not well-integrated with the online component, franchisees may struggle to apply what they have learned online to real-world situations. Additionally, if the online component of the training is not effective, franchisees may feel that the in-person component is insufficient.
Franchise training on WeSchool
A Learning Management System (LMS) can help you deliver training no matter your requirements in a simpler, more streamlined and communication-friendly space.
WeSchool’s LMS is one of the most flexible and collaborative learning platforms in the industry. This makes it ideal for franchise training requirements, as it supports training for all requirements (branding, operational, marketing, financial – and everything in between), locations and types (online, in-person or both).
Collaboration at its core
It looks like a social media platform for a reason – it’s built to be social on it! With a layout resembling online forums, and the option to comment on every content piece and message others with a few clicks, WeSchool encourages a constant back and forth between franchisor and franchisee.
Made for blended training
As we know, franchising success comes down to effective training – but not all of it can be delivered online. WeSchool complements well with in-person training, as trainers can add supporting materials and plan in-person events through a calendar while differentiating them from online materials.
Certification and formal training
That which isn’t measured isn’t managed. This is why as well as building relationships and in-person training, WeSchool lets you deliver formal training by creating assessments and exercises. This is perfect for training new franchise owners with skill sets they lack, such as marketing, operations or administrative tasks.
Building your franchise network: TL;DR
Franchising is more than handing over your business to a stranger, hoping they will do the same and succeed. Whether they do well or fail will come down to the quality of training and relationships built in the process. Ultimately it’s about focusing on the things that are going to increase the chances of your franchisee’s success. Why should franchisees invest in your approach? How are you going to support their growth?
If you’re interested in learning more about how to create an effective training strategy to support the growth of your franchisee network, get in touch to see how our cooperative LMS provides a space to create your own flexible training.