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Does the franchise fee cover all training costs?
Over the life of a franchise agreement a franchisee will have a number of training needs. The first of these will be the initial training on how to operate the franchised business. The cost of this training is usually funded by the initial franchise fee paid by a franchisee to the franchisor.The franchisor will also usually require that a franchisee attends mandatory training on any new developments or additions to the franchise concept. Many franchisors will provide this type of training at no additional cost, as it is funded as part of the ongoing fee paid to the franchisor throughout the term of the franchise agreement, although the franchisee will usually be responsible for any accommodation, travel and subsistence costs incurred. However, it should be noted that some franchisors will charge for such mandatory training, and so a franchisee will need to consider the terms of the relevant franchise agreement carefully.It is also not uncommon for a franchisor to provide additional training that may be requested by a franchisee from time to time, although a franchisee is likely to have to pay for this. Again, the franchisee is likely to be responsible for any accommodation, travel and subsistence costs incurred.
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