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Why highly skilled staff will ensure your brand’s success

Why highly skilled staff will ensure your brand’s success

Investing in training will ensure you have highly proficient franchisees and a committed and passionate workforce

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

The attitude of a franchisee towards 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.

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.

They must manage their businesses according to the franchisor’s 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 and are made in exchange for the ability to operate a business within an established brand, a proven business model and with the support services provided by the franchisor.

When you look at the number of franchisees who fail within their first year of trading (around one per cent, according to the British Franchise Association NatWest survey 2018) the opportunity they present may make such compromises worthwhile.

Fulfilling their potential

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’s important both the franchisee and franchisor identify factors that influence franchisee performance. One of these factors is regular, good quality training.

The support services provided by a franchisor may include training for the franchisee, but there are services outside the franchise network that are available too.

Franchisees who continually undergo management, sales 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.

However, training only starts with the franchisee. It needs to be extended to employees, whose performance impacts a brand’s reputation and, ultimately, client satisfaction and retention.

It’s important to ensure employees continue to feel like they’re developing, as it impacts directly on job satisfaction and, ultimately, how they interact with customers.

Everybody wins

Investing in training is beneficial to both a 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, while 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 franchisees the basics. Continuous improvement of franchisees and employees can significantly impact the growth and performance of a franchise.

Investing in good quality, relevant training will ensure you have highly skilled franchisees and a committed and passionate workforce. Be sure to invest in their development, as good people are hard to retain and even harder to find if you have to replace them.

At a glance Hitachi Capital Franchise Finance

For more information call 01844 355575 or visit hitachicapital.co.uk/franchise-finance

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