Building a franchise: planning ongoing training for franchisees

If you are turning an established business into a franchise network, sharing knowledge cannot stop at induction. Even experienced franchisees need support when processes become more demanding or recurring mistakes emerge. A well-designed ongoing training programme turns occasional sessions into a reliable learning process. What matters is not the number of events, but whether franchisees can actually apply what they learn in their own businesses.

1. Identify learning needs from day-to-day operations

Start with specific tasks, not a course catalogue. Which situations challenge even experienced staff in your existing business? Where do questions, rework or avoidable complaints arise? These can point to topics that may also be relevant to future franchisees.

Distinguish between three types of training need:

• Refreshing knowledge: Important procedures must be carried out confidently, even if they are rarely used.
• Developing skills: Franchisees may want to improve staff scheduling or communication skills, for example.
• Meeting new requirements: Changes to products, technology or legal requirements call for additional knowledge.

Identify the target audience for each topic. Not every course needs to be attended personally by the person running the business. Technical instruction may be more useful for the staff member responsible, while commercial decisions remain with the franchisee.

Next, define an observable learning outcome. Rather than “understand complaints management”, this might be: “Handle a complaint using the agreed procedure and record all the required information.” This makes it possible to check later whether the training has achieved its purpose.

2. Understand the legal framework

Germany has no specific franchise law and no special requirement for franchise systems to register with the state. Franchise relationships are governed principally by the general provisions of the German Civil Code (BGB), the German Commercial Code (HGB) where applicable, and competition and antitrust law.

For training provisions, the key considerations are contract drafting and the rules governing standard contract terms under sections 305–310 BGB. Even in business-to-business dealings, clauses that are unclear or place one party at an unreasonable disadvantage may be invalid. A blanket obligation to attend any training at any time at the franchisee’s own expense should therefore not be adopted without legal review.

The European Franchise Federation’s European Code of Ethics for Franchising also identifies both initial and ongoing training as responsibilities of the franchisor. This code is a form of industry self-regulation, not German law. Whether and how it binds the parties depends in particular on association membership and its incorporation into the contract.

Describe any promised ongoing training realistically from the outset in your franchise offer. Pre-contractual duties of care and disclosure arise in particular under sections 311(2), 241(2) and 242 BGB. If you promise continuing skills development, you should therefore establish what you can actually deliver before recruiting franchisees.

3. Define attendance requirements, time commitments and costs

Prepare a brief outline for each recurring training offering. It should cover the topic, target audience, learning outcome, format, estimated time commitment and allocation of costs. State explicitly whether attendance is compulsory or optional.

For compulsory events, the contract and supporting documents should provide a clear framework:

• Which topics can give rise to compulsory attendance?
• Who must attend, and when can someone attend in their place?
• How much notice will be given of dates?
• Who pays attendance fees, travel and accommodation costs?
• What alternative dates or equivalent learning formats are available?

Distinguish between services covered by ongoing franchise fees and those charged for separately. Even a free event takes up the franchisee’s working time and may require cover to be arranged. Do not plan solely from head office’s perspective.

Binding obligations and costs belong in contractual documentation that has been legally reviewed. The operations manual can explain practical arrangements, but should not introduce new payment obligations unnoticed. Also seek legal advice on how later additions to the programme can be validly agreed.

4. Pilot the training and support its application

Test new training modules first with suitable people from your existing business. Check more than technical accuracy: are the tasks easy to understand? Is the time allowed realistic? Does the exercise work without additional explanation from the business owner?

Choose a format that suits the learning outcome. Short digital modules work well for refreshing knowledge. Practical techniques require demonstration and practice. For business decisions, a facilitated exchange of experience between franchisees can be useful. Confidential business information should only be shared within a framework agreed in advance.

Link each training activity to a short follow-up task in the franchisee’s own business. After training on staff scheduling, for example, the franchisee could review an existing rota against the criteria covered. A later check-in will show whether further support is needed.

Record the topic, participants, date and agreed next steps. A certificate of attendance alone does not prove that someone can apply what they have learnt confidently. Use feedback and practical exercises to improve the content, rather than aiming to issue as many certificates as possible.

Practical next step: Choose one recurring learning need from your existing business. Develop a module with a clear learning outcome, transparent cost arrangements and a task to apply the learning at work. Only after testing it in practice should it become an established offering for your franchise network.