Pre-opening Training and Pass Requirements: What to Check Before Buying a Franchise in Japan
Before joining a franchise in Japan, check not only training fees but also pass criteria, retakes and the costs of a delayed opening. Here are the documents to request from the franchisor and the terms to clarify before signing.
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When considering a franchise, are you reassured simply by the promise that ‘training is provided, even if you have no experience’? What matters is not just access to training, but whether it equips you with the necessary skills and allows you to open on schedule. To help you get your franchise business off to a manageable start, this article sets out what to check before signing up: the content of pre-opening training, how you will be assessed and who bears the costs.
1. Check the tasks you will learn, not just the training titles
Start by asking the franchisor for the training curriculum and timetable. Labels such as ‘customer service training’ or ‘shop management training’ do not tell you how well you will be prepared for day-to-day operations. Distinguish between classroom teaching, practical exercises and training at an operating outlet, and check what you will learn and be able to do independently in each.
For example, learning customer service procedures and directing staff during busy periods are different skills. Check whether the training covers the tasks you will handle immediately after opening, including not only till operation but also end-of-day closing procedures, ordering, stock control and the initial handling of complaints.
Focus on four areas:
- Who must attend: Is training compulsory for the owner, the prospective manager, hired employees or some combination of these?
- Practical content: Will you mainly observe, or will you carry out tasks yourself and receive guidance?
- Attendance arrangements: Where is training held, how often does it run, how many places are available and what are the booking deadlines?
- Learning outcomes: Which tasks must you be able to perform independently by the end?
When comparing brands, do not judge training solely by its length. Look for opportunities to practise and receive feedback on tasks where you lack experience. If the business requires qualifications, licences or regulatory approvals, do not confuse completing the franchisor’s training with obtaining them.
2. Distinguish between completion, passing and approval to open
Attending training does not necessarily mean you will be authorised to open. Check the franchise agreement and training rules to see whether ‘attendance’, ‘completion’, ‘passing the assessment’ and ‘approval to open’ are separate requirements.
If there is an assessment, ask about its format — such as written tests, practical tests or customer service assessments — as well as the assessment criteria, pass standards, assessors and how results are communicated. Wording such as ‘where the franchisor considers the participant sufficiently competent’ gives prospective franchisees no clear target to prepare for. Ask for a sample assessment sheet or a detailed explanation of the criteria.
Pay particular attention to what happens after a failed assessment. Establish whether retakes are allowed, whether further training is required, how long you must wait for the next session and who conducts the reassessment. It is also important to know whether you can receive written feedback on what needs improvement.
If only the prospective manager fails, check whether you can send a replacement for training and whether the business can open if the owner has passed. The same applies if someone who has attended training leaves their job. Hiring a replacement may not be enough: the next available training dates could affect your opening schedule.
Do not assume that retakes or replacement participants will automatically be permitted. Check exactly which options are guaranteed under the contract.
3. Budget for delays as well as training fees
Even if you are told that ‘training is included in the initial franchise fee’, related expenses may not be covered. Draw up a list that separates payments to the franchisor from costs you must arrange yourself.
| Cost to check | Questions for the franchisor |
|---|---|
| Basic training fee | How many participants are included, and are materials or assessment fees charged separately? |
| Travel and subsistence | Who arranges and pays for transport, accommodation and meals? |
| Employee training costs | What is the charge for additional participants, and how should staff costs during training be budgeted? |
| Further training and retakes | When do these charges apply, how much are they and when are places available? |
| Changes to training dates | Are there charges for absence, switching sessions or cancellation? |
If you require employees to attend training, you must also check whether the training counts as working time and how wages should be handled. Do not assume that training can be unpaid simply because it is training. Depending on how it is organised, seek advice from a Japanese labour and social security attorney (shakai hoken romushi) or another appropriate professional.
Next, consider what happens if training delays prevent you from opening. Rent, wages for staff already hired and loan repayments may still fall due even when you have no sales. Prepare a cash-flow forecast not only for completing training on schedule, but also for having to attend again.
Distinguish between the causes of delay. Problems with the franchisor’s trainer arrangements or course capacity, a participant’s absence and failure to reach the required skill level raise different questions about who should bear the costs. Before signing up, also check the alternative dates and arrangements for additional expenses if the franchisor changes the training schedule.
4. Use Japan’s disclosure rules to check training terms in writing
Japan does not have a single comprehensive law governing all franchise agreements uniformly. However, Article 11 of the Act on the Promotion of Small and Medium-sized Retail Business requires franchisors whose operations qualify as a ‘specified chain business’ under the Act to provide written disclosure and an explanation before a contract is concluded. Whether the rules apply depends on the substance of the business and contract, not simply on whether the business calls itself a franchise.
Where the Act applies, compare the disclosure document’s explanation of management guidance with the franchise agreement and training information. Statutory disclosure does not necessarily mean that every pass criterion or provision for switching training sessions you need to know about will be clear. You will need to ask separately about anything missing.
The Japan Fair Trade Commission’s guidelines on franchise systems under the Antimonopoly Act also apply to a wide range of franchises, not just retail and food service. These guidelines state that it is desirable to provide written information and explanations in advance on important matters needed to make an informed decision about the contract. Be sure to distinguish between legally required disclosure and disclosure recommended by the guidelines.
The franchisor and franchisee are independent businesses, and general laws such as the Civil Code also apply to their agreement. Liability and remedies where training differs from what was described depend on the contractual terms and the particular circumstances. Do not assume that a recruitment promise to ‘support people with no experience’ guarantees unlimited additional instruction or the ability to open.
5. Before signing, ask what happens if you cannot open
For your final checks, ask the franchisor to explain not only the normal timetable but also what happens if things go wrong. Specific questions such as these can help expose unclear terms:
- ‘If the prospective manager fails the practical assessment, when can they take it again?’
- ‘If training is postponed for reasons attributable to the franchisor, what happens to the opening date and any additional costs?’
- ‘If approval to open is still refused after further training, what happens to the fees already paid?’
Keep a record of the answers alongside the relevant provisions in the agreement or training rules. If terms that directly affect costs or your ability to open remain unclear, ask a lawyer to review them before you sign.
Key practical takeaway: Obtain the curriculum, pass criteria, full cost breakdown and arrangements for delays before deciding to join. The starting point is not ‘Is training available?’ but ‘Who must learn what, and under which conditions can the business open?’
