Q:I'm thinking of getting into a
franchise business that I really like, but I have no experience
whatsoever in the industry. How can I be sure their training
program will prepare me properly? I'm going to have to compete
with other businesses where the people have been in this industry
for years, and I'll be brand new.
A: You've really hit on one of
the big strengths of franchising with this question. You've
also hit on one of the most important areas of research to focus on
when evaluating any franchise opportunity.
Most franchise companies do not want franchisees who have
previous experience in their industry. Though there are certainly
exceptions, many franchise companies have learned that previous
industry experience often gets in the way when they are trying to
train a new franchisee with their methods of conducting business to
achieve the greatest success. They would much rather work with a
blank slate.
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When you are investigating any franchise, one of the most
important questions to ask is, "How well does the training
program prepare me to run the business?" You should ask this
question of everyone you interview, especially the existing
franchisees you call or visit. They'll remember what it was
like when they first started out. This is one of those experiences
you don't forget. Find out how well prepared they thought they
were and, in hindsight, how well prepared they actually were. Ask
questions about what they would change in the training if they had
it to do over again- and about any missing or irrelevant components
of the training process.
Make sure you talk to franchisees who went through the same
training you will be receiving. Sometimes a franchisee who started
many years ago will have criticisms that are no longer valid
because they've been fixed. On the other hand, sometimes
businesses become more complex over time, and a training program
that was fine years ago might be in need of serious upgrading
today.
Also find out the scope of the training program. In addition to
what you need to learn about the particular product or service of
the franchise, there are many standard business processes you will
need to accomplish. A solid training program should include all
relevant factors, such as:
- Everything you need to know about delivering the product or
service
- How you find your location
- How you negotiate a lease
- How you complete the permits and buildout of your unit
- How you hire and manage employees
- How you conduct your marketing to produce customers
- How you keep your books and records for the business
- Where you get the supplies and inventory you need for the
business
- Where you get the equipment you need for the business
As a final note, make sure to confirm the documentation level of
the franchise training program. This means that everything you need
to know is written down in easy access manuals or other training
support sources like intranets. No matter how carefully you go to
school during the training process, you won't remember
everything, so you need to be able to find answers quickly and
easily once you get out in the business for yourself.
There are a host of factors involved in starting and
successfully operating your new franchise business, and they should
all be covered in a good training program. As you discuss this
topic with existing franchisees, you will either get a strong sense
that the franchise company has this subject completely under
control or they don't.
If they don't, or if you're just not sure, find a
different franchise, because the risk isn't worth it. That big
initial franchise fee you're paying is supposed to include the
best possible training and support, and you want to make sure
you're getting your money's worth.
Jeff Elgin has almost 20 years of experience in franchising,
both as a franchisee and senior franchise company executive. He is
currently the CEO of FranChoice
Inc., a company that provides free consulting to consumers
looking for a franchise that best matches their needs. He can be
reached at jelgin@FranChoice.com.
The opinions expressed in this column are
those of the author, not of Entrepreneur.com. All answers are
intended to be general in nature, without regard to specific
geographical areas or circumstances, and should only be relied upon
after consulting an appropriate expert, such as an attorney or
accountant.