Latest / Franchise Conversations with Fexingo: Buying, Running, and Scaling Franchise Businesses / Why Franchise Training Programs Often Fall Short
Transcript
- Lucas: I want to start with a number that stopped me cold when I came across it last week. A well-known fast-casual franchise — I won't name them, but they have over 200 units — discovered that 40 percent of new franchisees who went through their standard two-week training program were either out of business or sold their units within 18 months of opening. Luna: Ouch. That's brutal. And they had a two-week program, which by industry standards is actually pretty long. Lucas: Right. The industry average for initial training is about 10 to 14 days. So this brand was already above average on paper. But the training was almost entirely classroom-based — manuals, videos, a few role-playing exercises — and then they sent the franchisees out the door. The assumption was that the operations manual would cover the rest. Luna: And it clearly didn't. So what did they do when they realized the failure rate was that high? Lucas: They completely overhauled their training model. Instead of a two-week crash course, they shifted to a 90-day immersion program. The first two weeks are still at headquarters — but after that, the new franchisee spends the next ten weeks working shifts at an existing high-performing franchise location, paired with a veteran franchisee mentor. Luna: So they basically moved from a classroom model to an apprenticeship model. That makes sense — you learn the real rhythm of the business, not just the theory. Lucas: Exactly. And after that 90 days, the corporate support team schedules weekly check-ins for the first six months of operation. The result? The failure rate dropped from 40 percent to about 19 percent over the next two years. Luna: That's a huge improvement. But it also means the brand had to invest a lot more in training — paying the mentor franchisee a stipend, covering travel for the new franchisee, extending the time before the new unit generates revenue. Lucas: And that's the trade-off. A lot of franchisors are reluctant to extend training because they want franchisees to start paying royalties as soon as possible. But the cost of a franchisee failing is far higher — lost royalty revenue, brand damage, legal fees if there's a dispute. So forward-thinking brands are starting to see training less as an expense and more as an insurance policy. Luna: I've also heard that some franchisors use a train the trainer model — they don't train the franchisee directly, they train a designated manager who then trains the rest of the staff. Is that common? Lucas: It's becoming more common, especially in larger systems. The logic is that the franchisee is often the business owner and marketer, not necessarily the best person to run day-to-day operations. So you train the general manager, and the franchisee focuses on growth. But that only works if the franchisee actually hires a competent manager from the start — which isn't always the case. Luna: Right. And if the franchisee is a single-unit owner who plans to work the counter themselves, the train the trainer model might not apply at all. Lucas: That brings up a key point: the best training programs are tailored to the franchisee's profile. A multi-unit operator needs different training than a first-time business owner. But most franchisors still use a one-size-fits-all approach. A 2024 study by the Franchise Business Review found that only 23 percent of franchisees rated their initial training as 'excellent.' The majority said it was adequate but not great. Luna: So if I'm a prospective franchisee listening to this, what should I be asking about training before I sign the franchise agreement? Lucas: Great question. First, ask for the specific curriculum day by day. If they can't give you a detailed schedule, that's a red flag. Second, ask for the names and phone numbers of at least three franchisees who completed training in the last 18 months — not the ones the franchisor cherry-picks who are five years in and successful. Third, ask about ongoing support beyond initial training. Does the brand provide refresher courses? Do they have a peer network? Is there a hotline for operational questions? Luna: And I'd add: ask about the mentor program. If the brand has a formal mentorship system where existing franchisees are incentivized to help newcomers, that's a strong signal. If they say 'you'll learn from your neighbors' without any structure, be wary. Lucas: Exactly. And one more thing: ask about the training for your staff. Some franchisors train the franchisee but leave staff training entirely up to the franchisee. That can be a disaster if the franchisee has no training experience. The best brands provide standardized training materials and even on-site support for key staff roles. Luna: So let's talk about the other side: what makes a franchisee a good trainee? Because I think a lot of people assume that if they're successful in their career, they'll automatically succeed as a franchisee. Lucas: That's a dangerous assumption. I've seen corporate executives fail at franchise ownership because they weren't willing to follow the system. Franchising is about replication, not innovation. The best franchisees are the ones who show up with humility, take detailed notes, and ask questions. They don't assume they know better than the operations manual. Luna: Yeah, I've heard horror stories of franchisees who thought they could improve the recipe or change the store layout. And that almost never ends well. Lucas: Right. The whole point of a franchise is that the system has been tested and refined. The training is designed to transfer that proven system to you. If you're not willing to absorb it, you're better off starting your own independent business. Luna: Let's shift to another angle: technology training. With point of sale systems, inventory management software, customer relationship management tools — the tech stack at a modern franchise is complex. Are franchisors doing a good job training franchisees on the tech side? Lucas: Most are not. A 2025 survey by the International Franchise Association found that only 38 percent of franchisees felt adequately trained on the technology systems they were required to use. And that number drops to 22 percent for multi-unit operators who have to manage across locations. The problem is that tech evolves fast, and training materials get outdated quickly. Luna: So what are the best brands doing? Are they using online learning platforms? Lucas: Yes, the top performers are moving to modular online training that can be updated in real time. For example, one major quick-service brand uses a learning management system where franchisees complete short video modules on each software feature, followed by a simulation. They also have a certification requirement — you can't go live until you pass a tech proficiency test. Luna: That's smart. It forces competence before the doors open. But what about ongoing training for existing franchisees? I feel like once you're up and running, training kind of stops. Lucas: You're right. Most franchisors focus heavily on initial training and then provide only minimal ongoing education. But the best brands have annual conferences, regional meetups, and online refresher courses. Some even require a certain number of continuing education credits each year. It's not just about new products or systems — it's about reinforcing best practices and catching bad habits before they become entrenched. Luna: I want to bring up something I've noticed: some franchise disclosure documents list training as a one-time cost, but the actual cost of travel, lodging, and time away from your business can be substantial. Have you seen numbers on that? Lucas: Absolutely. A typical two-week training program at headquarters might cost the franchisor $5,000 per franchisee to deliver, but the franchisee's out-of-pocket costs — travel, hotel, meals, lost revenue from not being at their location — can easily be $15,000 to $30,000. And if the training is mandatory and you have to travel multiple times, it adds up fast. Luna: That's a hidden cost that a lot of franchisees don't factor into their initial investment calculation. So when you're looking at Item 11 of the FDD — the training section — you really need to look beyond the number of days and ask about the total cost to you. Lucas: Exactly. And read the fine print on whether training is included in the initial franchise fee or charged separately. Some brands bundle it, others charge a per-person fee. And if you have to send multiple employees, that can be significant. Luna: So to wrap this up — and I think this is a good takeaway — the quality of training is one of the most important due diligence items for a prospective franchisee. You can't just assume that because a brand has 200 units, their training is good. Lucas: Right. And if you're already a franchisee, it's worth asking your franchisor for more training resources. The best franchisors listen to feedback. If enough franchisees ask for better training, you might be the catalyst for improvement. Luna: And on that note, if these conversations have moved your work forward in some small way, you can support the show over at buy me a coffee dot com slash fexingo. No pressure, but it helps keep us ad-free and focused on content like this. Lucas: Definitely. And speaking of moving forward — next episode, I want to dig into a specific brand that rebuilt its entire training system from scratch and saw a 60 percent drop in franchisee turnover. We'll talk to an actual franchisee who went through both the old and new systems. Luna: That sounds like a great follow-up. I'm curious to hear what the transition was like from the franchisee's perspective. So we'll see you next time.