Training Franchise Staff in Saudi Arabia: A Clear Plan Before Granting a Franchise

Your business may succeed because your team has learnt its workings through experience. Granting a franchise, however, means transferring that knowledge to employees who have never worked with you. A promise of ‘comprehensive training’ is therefore not enough. You need a programme that explains what each employee will learn, how their competence will be assessed and who will pay if they need further training. Clear arrangements protect relationships across the franchise network and make knowledge transfer an enforceable commitment.

1. Start with a specific contractual commitment, not a general promise

Franchising in Saudi Arabia is governed by the Commercial Franchise Law and its Implementing Regulations. Article 11 requires the franchise agreement to set out both parties’ obligations relating to the franchisor’s training of the franchisee’s employees, along with any training fees. The agreement must also cover the franchisor’s obligation to provide the technical, marketing and other expertise needed for the type of franchise concerned.

This does not mean there is a standard training programme suitable for every brand. It means you need to turn your training offer into clear commitments, rather than leaving the details open to interpretation after signing. Prepare a schedule specifying who will be trained, where, in which language, what the training covers and how completion will be documented. Then have it legally reviewed as part of the agreement.

Distinguish between training and providing instructions: handing over an operations manual does not prove that an employee can perform a task. Equally, attending an induction session is no substitute for access to the procedures employees need every day. Make the relationship between the programme and the operations manuals clear, without reproducing the manuals in full within the schedule.

2. Design the programme around roles and risks

Start by identifying the roles that directly affect the customer experience, safe working practices, or cash and stock control. For each role, list the tasks the employee must be able to perform independently when they start work. This ensures that training is based on the branch’s needs, rather than the presentations the franchisor happens to have available.

A training matrix can be organised around four elements:

• Role: The employee, supervisor or branch manager who needs the training.
• Skill: The specific task, such as processing an order or closing a shift.
• Learning method: Explanation, observation or supervised practice.
• Evidence of competence: A practical demonstration or a test suited to the task.

A service employee, for example, needs practice in taking orders and correcting mistakes, while a manager needs to interpret reports, allocate responsibilities and handle exceptional situations. Training the manager should not be assumed to qualify the rest of the team automatically.

Also specify any prerequisites, such as basic familiarity with the IT system or the ability to understand instructions. If the team needs simplified materials or explanations in a language they understand, arrange this in advance while preserving accuracy and consistency with the approved operational guidance.

3. Distinguish attendance from successful completion

Attendance is an administrative measure, not sufficient evidence of readiness. For each critical task, establish an assessment method that can be applied consistently across trainees. This might involve practical observation using a checklist, a simulated customer scenario or completing an entire workflow under a trainer’s supervision.

For example, it is not enough for an employee to explain the steps involved in issuing a refund. Ask them to carry out the process in a training environment, checking the required authorisations and documentation. Record where they made mistakes and the corrective guidance they received, rather than relying on a general comment such as ‘needs improvement’.

Agree in advance on what happens if someone does not pass: who identifies the skills gaps, how further practice will be arranged and who carries out the next assessment. If successful completion is a contractual condition for performing particular tasks or being deemed operationally ready, state this explicitly and explain the consequences. These are suggested operational arrangements, not pass marks or training durations prescribed by the law itself.

4. Allocate costs and responsibilities before signing

The phrase ‘training is included’ leaves important questions unanswered. Does it cover only the opening team? Does it include travel, accommodation, materials and trainers’ fees? What happens if a trainee is absent or a trained employee is replaced? Explain what is covered by the agreed fee, what attracts a separate charge and how that charge is calculated.

Allocate responsibilities in practical terms: the franchisor specifies the trainer, content and available dates, while the franchisee nominates suitable employees and ensures their attendance as agreed. Set out the required notice period and the procedure for postponing sessions, rather than assuming the franchisor can accommodate a new team immediately on request.

Pre-contractual disclosure must also be taken into account. Article 7 requires the franchisor to provide the franchisee with the disclosure document at least 14 days before the agreement is signed or any franchise-related payment is made, whichever occurs first. Do not therefore treat franchise-related training fees as a separate payment that falls outside this timetable. Set out the financial obligations clearly in the relevant documents.

5. Plan training for staff replacements and ongoing operations

A branch’s need for learning does not end when it opens. Create one pathway for new employees and another for updating skills when procedures change. Specify when the branch manager may train their own team and when a franchisor’s trainer must be involved. Do not authorise someone to deliver internal training solely on the basis of length of service; check their ability to explain and assess.

Keep a record of each trainee, the skills acquired, the version of the training content used, the assessment result and any follow-up needed. Monitor recurring errors after training: the cause may be unclear explanations or a procedure that is difficult to apply, rather than employee performance alone.

Practical takeaway: Before granting a franchise, prepare a skills matrix, an assessment process and a contractual schedule setting out training obligations and costs. Test the programme on an employee who was not involved in building the business. Their ability to put the training into practice reveals more about its value than the number of hours they attended.