Training is a key consideration in the franchise company and each franchise outlet must operate the same to maintain the consistency of the brand-name. One of the reasons people by franchisees is for a strong brand-name which will drive customers to the franchise outlet. But, occasionally a new franchisee may fail their initial training and they cannot be allowed to start their franchise business until they passed training. If they never passed training they can never be allowed to start, as it would undermine the entire franchise system.

So then, at what point do you tell the franchisee in training, that things are not working out and sever the relationship? This issue is important, as it is a competitive market in you need the strongest team to maintain market share. To address this issue it is important to put a stipulation in the franchise agreements prior to the signing and taking of any funds for the franchise. Below is a copy of a clause we put into our franchise agreements for this very purpose;

3.6.3 Failing Training Initially

If Franchisee fails the initial training course, the Franchise may be terminated. Franchisee or Franchisee