Franchising in Canada: assessing initial training

Initial training can make a franchise concept accessible to an entrepreneur with no previous experience, but its advertised length alone does not prove its value. Across Canada’s franchise sector, each brand prepares its new franchisees differently. Before buying, check what you will learn, which expenses to budget for and what happens if the training proves inadequate or you fail to pass.

1. Assess the programme, not just its length

Ask for a written programme that distinguishes between classroom teaching, practical exercises and training at an operating outlet. A product presentation does not offer the same preparation as a practical scenario in which you have to handle an order, resolve a complaint or organise a shift.

The content should reflect the responsibilities you will actually take on. In particular, look at how much attention is given to:

• using till, booking or management systems;
• preparing products or delivering services, and checking their quality;
• recruiting staff, drawing up rotas and supervising the team;
• managing stock, wastage and orders;
• monitoring financial and operational performance indicators;
• handling complaints and following safety procedures.

For each area, ask who delivers the training, how learning is assessed and what practical experience is included. The trainers’ operational experience matters as much as the quality of the materials.

The key test: could you explain how you will carry out your main tasks after completing this training? If the answers remain vague, ask for a demonstration or a preview of the exercises before committing.

2. Calculate the full cost of training

“Training included” does not necessarily mean that every expense is covered. Clarify how many participants are included, their roles and the charges for an additional person. Also check whether your manager must attend the programme with you.

Prepare a separate budget covering, depending on the terms offered:

• training fees not included in the advertised price;
• travel, accommodation and meals;
• wages for employees taking part;
• travel expenses for trainers sent to your premises;
• extra sessions and any resits or reassessments.

Draw up a schedule too. Training far from home may require considerable planning around family and work commitments. If it takes place several months before opening, ask whether a refresher session is available and on what terms.

Also clarify the procedure if either party cancels or postpones the training. Who bears the cost of non-refundable bookings? Is a place on a later course guaranteed? These answers will help you establish the true cost of the programme without confusing training expenses with other start-up costs.

3. Understand the pass criteria and their implications

Some contracts may make opening conditional on successfully completing the training. You therefore need to examine this requirement before signing, rather than when you come to take an assessment.

Ask which criteria apply, who decides the outcome and how it will be communicated to you. A general assessment of your “suitability” needs concrete explanation: which skills will be observed, which exercises must be completed and whether you will have an opportunity to address any shortcomings.

Ask your lawyer to review the contractual consequences if you or your manager fail. Does the contract allow for reassessment, additional support or a replacement participant? Who pays? Could the opening be delayed? Can the franchisor terminate the agreement and, if so, which payments would be retained or refunded?

Also distinguish initial training from support at opening. Ask how many people will be on site, for how long and to carry out which tasks. A telephone helpline is not necessarily a substitute for an on-site trainer when the whole team is new.

4. Check the applicable disclosure requirements and commitments

Franchise rules vary by province. In Ontario, the Arthur Wishart Act (Franchise Disclosure), 2000 requires, subject to statutory exceptions, a disclosure document to be provided at least 14 days before signing an agreement or making a payment relating to the franchise. The required information includes details of the training and other assistance programmes offered.

This disclosure obligation does not guarantee that the programme will meet your needs. Compare the disclosed description with the contract and its schedules: eligible participants, location, content, costs and pass criteria should be consistent. Have any discrepancies reviewed before proceeding.

In Quebec, there is no franchise-specific legislation imposing a comparable disclosure regime. The general rules of the Civil Code of Québec, particularly those concerning contracts and good faith, apply. Do not therefore assume that you will automatically receive a standardised disclosure package: request the details you need for your due diligence.

Key takeaway: before buying, obtain three things you can verify: a programme suited to your responsibilities, a complete budget and clearly explained pass criteria. Effective training prepares you to run the outlet, not merely to become familiar with the brand.