Set Mandatory Pre-Opening Training for Franchisees in Malaysia

Long-serving employees may be able to run your business with little guidance. Prospective franchisees, however, may not have the same experience. Before expanding an existing business through franchising in Malaysia, establish initial training that demonstrates whether someone can genuinely run an outlet. The aim is not simply to fill a course timetable, but to ensure that essential responsibilities can be handled without the founder constantly being on site.

1. Identify the skills participants must demonstrate

Start with a simple question: which mistakes by a newcomer would most quickly affect customers, money or safety? The answer should determine the training content, rather than the order of your company presentation or whatever is easiest to teach.

In a food business, for example, participants may need to demonstrate how to receive raw ingredients, prepare products to specification and cash up. In a service business, the focus might be on welcoming customers, confirming the scope of work and checking the results before handover.

Divide the skills by role:

• Franchisee: understanding the owner's responsibilities, reviewing performance and providing operational resources.
• Outlet manager: organising shifts, controlling stock and dealing with day-to-day problems.
• Frontline staff: carrying out specific tasks correctly and consistently.

Do not assume that a franchisee who passes the training can immediately train all their staff. Being able to perform a task and being able to teach it are two different things. If your model relies on outlet managers delivering training, also assess how they explain tasks, observe practice and correct mistakes.

The result should be a list of mandatory skills for each role, together with a way to demonstrate each one. Use this list as the basis for deciding whether an outlet is ready to open.

2. Build a training pathway from observation to hands-on practice

Structure training around developing competence. Participants should start by understanding why a procedure is needed, then watch a demonstration, perform the task with guidance and finally carry it out independently. Reading materials can support this process, but cannot replace practical training.

Use an existing outlet as a training venue only if its operations genuinely follow the system you intend to pass on. If the trainer teaches one method but staff demonstrate shortcuts, participants will encounter two conflicting standards.

Prepare a timetable that specifies:

• the skills taught in each session;
• who is responsible for teaching and assessment;
• the equipment and materials required;
• practice covering both routine and unexpected situations;
• the records to be completed after each session.

For example, till training should not stop at ordinary sales transactions. Include situations such as failed payments, refund requests and cash discrepancies. Use simulations where live training could disrupt customers or create risks.

The duration of training should reflect the complexity of the tasks and the participants' ability. Avoid promising an excessively short course simply to make the franchise opportunity look easy.

3. Set out training requirements in the franchise documents

Franchising in Malaysia is governed by the Franchise Act 1998, including amendments in force. Section 7 lists the training manual among the documents that must accompany a franchise registration application. This indicates that training should be developed as part of the system, rather than arranged informally after a franchisee joins the network.

Section 15 also requires prospective franchisees to receive the disclosure document and related documents submitted to and approved by the Registrar at least 10 days before signing the agreement. Important training details should therefore be explained early, rather than introduced as additional conditions shortly before opening.

With a lawyer's assistance, specify who must attend, where training will take place, who is responsible for providing trainers and what the fees cover. Also clarify who pays for travel, accommodation, participants' wages and training materials, where applicable.

Distinguish legal obligations from your own business policies. The assessment methods, pass marks or number of attempts you set are not automatically statutory requirements. If passing the training is a condition of opening, explain how this works in the relevant documents so that franchisees understand the implications for their timetable and costs.

4. Assess performance and provide a route to improvement

Attendance records only prove that participants attended training. They do not prove that participants can run the operation. Use practical observation, scenario-based exercises and reviews of work records to assess actual skills.

For each assessment, record the task, date, assessor's name, result and brief supporting evidence. Distinguish minor mistakes that can be corrected immediately from critical failures requiring retraining. Assessors should apply the same criteria, rather than rely on personal impressions of participants.

If a participant is not ready, issue a written improvement plan. Specify the skills that need work, the additional training required, the reassessment date and responsibility for costs under the agreed terms. Avoid unexpected decisions that leave franchisees paying additional rent or wages without understanding why.

After opening, check whether participants are actually using the skills they learnt. Repeated mistakes may indicate weaknesses in the training, rather than simply carelessness at the outlet. Use these findings to improve demonstrations, training materials and assessment criteria.

Practical takeaway: Before accepting your first group of franchisees, prepare a mandatory skills checklist, a practical training timetable, assessment forms and a retraining plan. Open outlets on the strength of demonstrated competence, not course attendance alone.