Designing Pre-opening Training Before You Start Franchising: Completion Standards and Retraining Costs

The way you train staff in an existing outlet will not necessarily work for your first franchisees. Franchisees must handle not only day-to-day tasks but also ordering, financial reconciliation, staff supervision and decisions when something unexpected happens. When starting a franchise network, what matters more than a lengthy training timetable is agreement on what franchisees must be able to do before opening. Defining the scope, assessment methods and costs of pre-opening training helps both the franchisor and franchisee reduce the risks of opening before they are ready.

1. Align training commitments with the disclosure document and franchise agreement

Franchising in South Korea is governed by the Fair Transactions in Franchise Business Act. Article 11(2) requires franchise agreements to include provisions on training and management guidance for franchisees. Training is not simply an extra benefit offered during recruitment: it is part of the franchisor’s support obligations and should be clearly defined in the agreement.

The disclosure document defined in Article 2(10) of the Act also includes information on training. Franchisors must provide prospective franchisees with a disclosure document registered with the competent administrative authority. Rather than promoting training first and filling in the details later, establish a programme you can actually deliver, then reflect it in the disclosure document and agreement.

Start by preparing a one-page training terms sheet. Bring together who must attend, the location, duration, programme, costs, assessment methods and retraining conditions. This sheet does not replace legally required documents, but it provides an internal reference for aligning commitments across them. Recruitment staff should also use it when explaining the offer.

In particular, spell out what ‘training included’ means. State whether it covers only the franchisee’s initial training or also staff training and practical materials, and who pays for travel and accommodation. This does not mean that every item is a separate statutory disclosure requirement. It is a practical principle: clarify the contractual scope of support and responsibility for costs to reduce disputes.

For example, if a sales conversation promises free staff training but the agreement’s schedule covers only one franchisee, staffing arrangements may unravel just before opening. Those drafting the documents should check what recruitment staff actually tell prospects. Do not assume that signing the agreement automatically resolves inconsistencies in earlier explanations.

2. Define performance tasks before setting training hours

Training design should start with the work franchisees must handle independently, not with what the business owner wants to explain. Divide a day at an existing outlet into opening preparations, normal trading, busy periods and closing, then list the decisions required at each stage. Separating routine tasks from management decisions will reveal gaps in the training.

For example, making a product and deciding to stop selling a defective product are different tasks. Entering an order into the point-of-sale system is also distinct from checking cancellations and refunds. A trainee’s ability to copy a demonstration should not be taken as proof that they have mastered both skills.

For each task, record the following in the training plan:

• Performance scenario: the conditions to be tested, such as a standard order, an order change or a stock shortage
• Expected behaviour: the specific actions or decisions the trainee must carry out independently
• Assessment evidence: outputs such as finished products, system entries or reconciliation records
• Pass criteria: acceptable errors and serious errors that must be corrected
• Remedial process: how trainees will practise weaker areas and be reassessed

Express pass criteria as observable behaviour rather than vague descriptions such as ‘sufficiently proficient’. For instance, check whether a trainee facing a stock shortage can find the prescribed approval procedure instead of using an unauthorised substitute. Focusing only on speed can lead trainees to skip checks needed for accuracy or safety.

Franchisees and staff do not necessarily need identical programmes. Staff can focus on their assigned tasks, while franchisees must also learn to identify and correct staff errors. If someone else will manage the outlet, define which parts of the training they must attend, while retaining the areas of responsibility the franchisee must personally understand.

Prioritise tasks according to the consequences of failure. Verify and repeatedly practise those that directly affect customer safety, money handling and the ability to keep trading. Even infrequent tasks should remain in the programme if the consequences are serious: present a scenario and ask trainees to explain their response step by step.

3. Test the training programme in a company-owned outlet

Pilot the completed programme with participants who are unfamiliar with the operation. It is difficult to identify weaknesses if the business owner or experienced staff continually supply the answers. Record the time spent explaining tasks, questions asked, recurring errors and trainer interventions, and observe where trainees struggle.

The purpose of the pilot is not to fail trainees but to establish whether the training method works. If several participants make mistakes at the same stage, review the sequence of instruction and the practical training environment before questioning individual ability. If the training equipment differs from that in the new outlet, include additional instruction on those differences.

Distinguish between copying a task immediately after a demonstration and performing it without help. Then combine several tasks in a simulated trading session. Introducing a stock shortage or payment cancellation during a rush can reveal whether trainees who perform individual tasks well struggle to manage the overall operation.

Trainers must also be prepared to apply the assessment criteria. If different trainers reach different pass-or-fail decisions on the same performance, franchisees may see training as an arbitrary means of control. Record the reasons for each judgement on the assessment form and arrange for borderline cases to be reviewed by another assessor to improve consistency.

Assess the franchisor’s training capacity as well. If trainers also have outlet duties, training may stop whenever trading gets busy. Check how many people can be trained at once, what practical space is available, and whether backup trainers and equipment are available. Offer training dates within those limits rather than overpromising to keep pace with recruitment.

4. Agree in advance how unsuccessful completion and retraining will be handled

Completion standards alone will not prevent last-minute disputes if there is no process for trainees who do not meet them. Define in advance who needs remedial training, how reassessment will work, who will coordinate scheduling and how additional charges will be calculated. The process below is an operational example, not a statutory completion procedure that applies to every franchisor.

First, provide written notice of the tasks that need improvement and propose targeted remedial training. Then review the reassessment results and any remaining preparations together. Keep attendance records separate from competence assessments: attending every session is not the same as being able to perform the work.

Consider retraining costs according to their cause. An unauthorised absence by a trainee should not be treated in the same way as the franchisor’s failure to provide a trainer. During the contract review, check how costs and responsibility are allocated so that franchisees are not charged extra for problems such as changes to the training content or equipment that the franchisor has failed to prepare.

If successful completion is a condition of opening, make its meaning clear. Do not assume that failure to complete training alone allows the franchisor to postpone opening indefinitely or terminate the agreement unilaterally. Changes to the opening date, responsibility for costs and the appropriateness of contractual measures require separate consideration in light of the circumstances and applicable law.

At the end of training, share the completion outcome, areas requiring improvement and tasks to be checked after opening with the franchisee. Rather than closing the process with only the trainer’s signature, allow trainees to comment on the results and designate a support contact to receive the records. This helps ensure that weaknesses identified during training are addressed through post-opening support.

Action summary: Before recruiting your first franchisees, prepare a training terms sheet and performance assessment form, then test them in a company-owned outlet. Use the findings to align your training commitments, completion standards and retraining costs across the disclosure document and franchise agreement.