The Franchise Opportunity. Part 2 of 5: Operating and Training Systems

Part 1 of this series focused on the fees associated with franchise ownership. Part 2 will focus on operating and training systems and their importance to business success.

The pandemic had a great impact on everyone across the globe. The illness, death, and disability caused by COVID’s many variants have been felt far and wide. The lasting impact will be with us for many years to come. The pandemic’s devastating path has left many, if not all, questioning the fragility of life and how we choose to spend the little time we have on our beloved earth.

This seemingly forced reflection has caused many to question what they are doing with the time they have and whether they are on a path to achieve their dreams. For some, the pandemic was a wakeup call and a realization that life truly is short. This reflection has not been limited to personal life but, as has been evidenced by the Great Resignation, has bridged over into professional life as well. Alignment of values and a shared purpose with an employer has become a point of concern for many as they seek greater things for themselves, their families, and the world in which they live.

Many have chosen to leave comfortable positions in the corporate world to pursue their dreams of business ownership. Some have followed their passion and started a business from scratch, while others have sought work as a freelance independent contractor. Some have started online businesses, selling their creations to customers across the globe. Others have turned to franchising as a viable path to self employment.

For many, business does not come easy. They want step out on their own but fear failure. They would rather partner with someone who can show them the way than take a chance on their own. Some have confidence in their ability to succeed in business, but do not know where to start. For these groups of people, franchising may be their best option. A franchise offers a determined entrepreneur a proven concept and a team of franchise professionals to support them as they take steps into uncharted waters.

While franchising is a great option for someone looking to own a business, choosing the correct franchise is as important as the decision to start a business from scratch. Both are major decisions and if done poorly can have devastating financial and personal consequences.

At its core a business is comprised of several systems working together to create a result. How well the systems work together will determine product and service quality and ultimately the business's success. The business systems also impact the customer experience and determine are instrumental in driving overall satisfaction. The systems can also influence employee satisfaction and can be a major contributor to turnover.

Therefore, before you jump into a franchise relationship with both feet you would be wise to understand the operating and training systems and how they work together to achieve the ultimate result, which is quality products, excellent service, and exceptional customer acquisition and retention. All must be present if you hope to have a fighting chance in a highly competitive business environment.

Below are a few questions and thoughts that may help guide your decision-making process.

Operating Systems:

Who developed the standard operating procedures? Was this person the person who developed the initial proof of concept? If not, does this person have experience with the brand or other similar brands within the industry? Are the core business processes documented and easy to understand?

How are the standard operating procedures documented? Are the manuals written and organized in such a way that they are easy to follow? Are there flip charts, flow charts, or other visual aids available and developed in a way that a teenager can follow with confidence? When were they last updated? Are there scripts? Are there plan-o-grams showing where everything should be placed and how to organize and maintain the business?

What type of system is used for point-of-sale and inventory management? Is it an industry recognized system? Is it a system that a teenager can manage with ease and be brought up to speed on in a fairly short period of time? Is the reporting relevant to the vital signs of the business, easy to pull, and easy to read and understand? Is inventory management simple and and user friendly?

Training System:

How much time does the franchisor offer for hands-on training? Will they expect you to come to them? If so, who is expected to attend and for how long? Will they come to you? If so, who will come to you and for how long? Will the people coming to you work with your team and stay to assist for the first few days after opening?

Who will be providing the training? Have they worked in the business? Do they understand the business inside and out? Do they understand the brand, its customer, and customer expectations? Do they understand how to train adults and how adults learn best? Is there a curriculum? Is there a clear lesson plan for each aspect of the curriculum? Does their process for training follow an orderly sequence that builds upon previous learning? Are there periodic retention and performance checks? Does the training cover all the key components that are required to effectively run the business?

Is online training offered? Does it offer a basic understanding of the key components of the business? Is there in-depth training for each aspect of the business? Does the online training offer checks for understanding and accountability for learning? Does it offer gamification? Does the online system allow future employees an opportunity to become reasonably well trained?

Operating and Training Systems

Operating systems and the system for training are two of the most important aspects of any business. They are also the areas that will either make your life as a business owner somewhat easy or incredibly hard and stressful. It is important to remember that anyone can say they have great operating systems and outstanding training. However, this is one of those areas where you cannot run on faith. Seeing is truly believing. While you will want to accept the word of the franchisor as gospel, this is an area where you must question your faith.

To know how well the systems were developed and work together, sit in a few different locations in a few different cities. Watch the team and try to determine if there is a natural flow and if everyone knows their role. Sit through a rush and look for kinks in the armor. Talk to current franchisees to determine their level of satisfaction with the operating and training systems. Talk to employees. They’ll tell you the reality of their situation, which is the situation you will be dealing with regularly.

While you can't possibly cover everything with these questions, they do offer a starting point for better understanding what you are about to get yourself into. They may also help you understand a little about the franchisor’s leadership team and how likely they will be to offer the necessary support to ensure your success. Some will try to pass your training off to online learning because it makes their life easier. This is fine for some things but not for the initial launch of a new business. There is nothing more frustrating than opening for business and having everyone look at each other like deer in headlights during the first rush.

What a franchisor values comes through loud and clear by where they choose to invest their money and their time. If it is not in training and operations, you may want to think long and hard before leaping into what could be an abys. This is a big decision that will either become a dream come true or a nightmare. If you want to sleep well at night, do your due diligence!

Up Next Part 3 of 5: Marketing

Randy Stepp is a Principal with Renaissance Leadership Group. RLG is a full-service medical practice and business development firm committed to helping owners achieve long-lasting success and sustainability.

Visit Renaissance Leadership Group at www.renaissanceleadershipgroup.com to learn more.