Franchising in Taiwan: How to Build a Store Manager Training, Assessment and Succession System

A store that runs smoothly today may not maintain the same standards under a different manager. When businesses in Taiwan prepare to offer franchises, they need to do more than teach franchisees how to open a store. They must also answer two questions: who is capable of leading a shift, and who will take over if the current manager leaves? A repeatable system for training, assessment and succession is fundamental to consistent service across a franchise network.

1. Define Store Manager Competencies Before Planning Courses

Many head offices treat training as learning on the job at an existing store. Yet the number of days spent shadowing staff does not demonstrate how much someone has learnt. Start by identifying the tasks that managers in existing stores must perform independently, then decide what the training should cover.

Group competencies into three areas:

• Routine operations: Opening the store, handing over shifts, taking stock, reconciling payments and carrying out basic equipment checks.
• On-the-floor judgement: Allocating work during busy periods, handling customer complaints and suspending the sale of affected products or provision of services when quality problems arise.
• People management: Demonstrating procedures, observing new starters, recording mistakes and arranging further practice.

Each competency should have an observable pass standard. For example, “understands stocktaking” is too vague. “Can complete a stocktake, identify discrepancies between records and physical stock, and report them according to procedure” can be assessed. Safety-critical items should be scored separately: high marks elsewhere should not compensate for a failure in these areas.

First, assess current managers at company-owned stores against the checklist. If even experienced staff interpret the standards differently, revise how procedures are demonstrated before passing the problem on to franchise outlets.

2. Design Training and Assessment Separately

Training can follow a sequence of demonstration, practice, independent operation and feedback, but assessment should be arranged separately. Watching a demonstration or signing an attendance sheet proves participation, not the ability to lead a shift independently.

Routine tasks can be observed during real shifts. Rare situations with serious consequences are better tested through scenario-based exercises. If equipment suddenly stops working, for example, does the trainee know which activities must be suspended, whom to notify and which decisions they are not authorised to make alone?

Head office should prepare a standard assessment form that records outcomes, the reasoning behind decisions and areas for improvement. Where possible, someone other than the main trainer should review critical items, reducing the risk of treating “has been taught” as “has passed”.

Anyone who does not pass should receive a specific list of further training requirements, setting out what they need to practise, how they will be reassessed and which duties they may undertake before passing. Assessment records should explain the reasons for the decision, rather than simply state “pass” or “fail”.

3. Set Out Training Responsibilities in Disclosures and Contracts

Taiwan does not have a single dedicated franchise statute, but that does not mean franchising is unregulated. The Taiwan Fair Trade Commission’s principles for handling cases concerning franchisors’ business practices set out disclosure requirements for material franchise transaction information, including the content and methods of operational assistance and training provided by head office. Concealing material information in a way that is obviously unfair and capable of affecting trading order may fall within Article 25 of the Fair Trade Act. The parties’ contractual rights and obligations are also governed by general legislation, including the Civil Code.

When recruiting franchisees, therefore, avoid relying on promises such as “comprehensive training” or “we will train you until you are competent”. Before signing, clearly explain:

• Whether training is for the franchisee, the store manager or other employees as well.
• The training location, format, planned content and assessment methods.
• How many training places are included, and who pays for travel, accommodation, further training and reassessment.
• The consequences of failing an assessment and any alternative arrangements available.
• Whether a replacement store manager must undergo training again.

These arrangements should be consistent with the franchise agreement and its schedules. If assessment results may restrict a store’s operations, it is particularly important to specify the applicable conditions in advance, rather than allowing head office to introduce additional, unagreed requirements later. Nor should an internally designed certificate of competence be promoted as a government-recognised qualification.

4. Make Succession Planning Part of Managing Staff Turnover

A manager’s departure should not mean starting the training process from scratch. Head office can require franchise outlets to maintain a list of their principal manager and designated deputies, with an agreed procedure for notifying staff changes. Deputies can complete training in critical competencies first, then follow a planned pathway towards full qualification.

Prepare transition arrangements for unexpected departures: who may act as manager, which tasks require additional checks and when the successor will be assessed. If head office offers on-site support, explain whether it is chargeable and how it will be scheduled. Do not assume that head office can provide someone to run the store indefinitely.

Training records should be kept for each individual, noting completed items, assessment dates, the version of the operating procedures covered and any outstanding training needs. This is a recommended management practice, not a statutory registration system for franchise store managers in Taiwan. When products, equipment or key processes change, targeted training can address the differences without requiring everyone to repeat the entire course.

Practical takeaway: Start with one shift at a company-owned store. List the tasks the manager must perform independently, then use the same checklist to assess both the current manager and a potential successor. Only when skills can be taught clearly, assessed objectively and passed on to a successor has the owner’s experience become a lasting capability across the franchise network.