Franchise Industry Briefing. Driving Profitability through Learning Management Technology

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1 Franchise Industry Briefing Driving Profitability through Learning Management Technology

2 Introduction Franchises come in all types and sizes, but no matter what franchise business you re in, one thing remains clear, driving brand quality and service consistency across your business model are keys to your success and greater profits. You invest a lot of time and money to market and sell the quality and consistency of your brand, but do all of your franchises live up to your branding expectations? Do your customers enjoy a consistent brand experience no matter where they are? How then can you effectively standardize the customer experience? Procedures and guidelines are helpful, but providing consistent and ongoing training programs distributed across all of your franchise locations will help you to meet your mission critical objectives. Successful franchisors understand that their commitment to providing ongoing training to their franchisees creates the foundation for profitability and brand success. Thanks to the surge of the Internet and cloud-based technology, franchisors are able to provide ongoing training and support to their franchisees effectively, efficiently and economically. This industry brief will provide an overview of the benefits to providing online learning to franchises. We provide extensive training to give all team members the confidence, skills and education to work from driver, to store manager to store owner. Our valued team members love coming to work because they know they are the absolute best in the pizza industry. Glenn Mueller, President/CEO, RPM Pizza i

3 Franchisor/Franchisee Training Scenarios Nearly all franchise training programs begin with training at the franchisor s headquarters. Typically the franchisee or the franchisee and some team members are invited to participate in an instructor-led and quite possibly a hands-on training program. The length of this program can range from just a few days to a few weeks. Topics during this training typically include corporate overview, review of operations manual, pre-opening procedures, daily operations, etc. Upon completion, and a little further along, there may be onsite training at the franchisee location in order to assist them to become more comfortable with the day-to-day operations of the business. These are great business practices! While most franchisors provide training to new franchisees, many fail to ensure that their franchisees receive ongoing training. How do you train franchisees when your brand evolves? Product lines change, new technology is introduced; promotions change if you re not providing ongoing training how are you getting your point across? If you re using as your communication vehicle can you ensure That your was received, read, understood and shared? This scenario can easily lead to brand dilution. When staff training is left up to the franchisee and their management team there is the potential for brand dilution Also, many franchisors do not provide training for franchisee employees. Staff training is decentralized and left up to the franchisee and their management staff. New managers and new employees require proper training when they re hired, and even beyond their hiring. This decentralized training model is again another example of where the potential for brand dilution can begin. Once you, the franchisor, lose control over your consistency in messaging, operational expectations, company values, etc., your brand quality and service consistency may begin to erode, and over time, so can your profits. After working so hard to develop your brand and your business model, are these risks you re willing to take?

4 Business Concerns that Drive Training Initiatives Although no two franchise systems are identical, many experience similar business concerns that easily lend themselves to the development of online training initiatives. The greatest concerns have already been brought to light; driving brand quality and service consistency across your business model; however there are other concerns that support the need for online training, and all of these concerns can impact your bottom line. What s Driving Training Initiatives? Annual employee turnover rates and new employee growth rates require ongoing training New product/service line introductions require timely employee training New operating processes, procedures, equipment or technology introduced change the way employees work and require additional skills and knowledge training Compliance with occupational health and safety training and sexual harassment requirements Career development opportunities (promote from within) Sharing of best practices to enhance performance and innovation opportunities International expansion requires worldwide consistency Time, effort and costs associated with live training Measurement and accountability of training and results

5 Building Stronger Franchises through Learning Management Technology Online learning compliments the traditional franchisee training scenario while effectively addressing many of your business concerns. Online learning allows franchisors to cost effectively develop and distribute training programs across widely dispersed locations via the Internet. More importantly, online learning creates consistency in training for all levels of staff. Learning management technology provides the ideal platform by which to deploy your online training programs. Not only can you to deploy your training programs, but you can monitor compliance, activity levels, and assess staff to ensure that they ve understood what they ve learned that s just the beginning, and you have complete control. Benefits of Delivering Franchise Training through Learning Management Technology Cloud-based learning management technology enables your franchise to create and manage training programs that improve employee and business performance. You can automate your training process from content development and course registration through tracking and reporting, in one easy-to-use software platform. Additionally, most Learning Management Systems (LMS) support online learning, traditional blended learning, social and mobile learning. There are a multitude of benefits for implementing learning management technology for franchise training, the greatest of them being driving consistency to support your brand and increase your overall profitability. Additional benefits include, but certainly aren t limited to some of the following examples. "ColorTyme provides great training programs: online for entry- and mid-level employees, and home office training in Dallas for management and multi-unit manager training." Gary Hughes/CEO, GCH Management ii

6 Cost Savings/Return on Investment Onsite training can become quite costly when you consider time and travel expenses. Providing some training through an online LMS immediately reduces travel expenditures and administrative costs. Increased Operational Efficiencies Offering online training ensures that all your franchise locations receive the same consistent training so that they can operate in the same manner to provide the same level of quality that s recognized with your brand. Rapid Scalability Online learning via an LMS allows you to train small to very large numbers of employees simultaneously. No matter how fast your organization grows, a cloud-based LMS meets your needs. Remain Competitive In order to remain competitive your franchise needs to evolve. Continuous training offered online can immediately keep your franchise teams current and up to date with new developments in your product line or service offering. Convenient Accessibility 24/7 Training and reference materials are available on demand, anytime and anywhere there is an Internet connection. Today s LMSs can be accessed by desktop, laptop, or any other mobile device. Your employees can learn when it s convenient and have access to reference materials when they need it. Employee Engagement and Retention Reduce turnover rates and the costs associated with employee turnover by providing continuous learning opportunities and skills development. Engaging employees through training and development helps to build confidence and loyalty; it motivates employees and ultimately helps to retain them. According to the Human Capital Institute, companies with highly engaged employees enjoy profit and growth at 3X the rate of their competitors. Meet Compliance Requirements An LMS allows you to easily meet regulatory or compliance training requirements such as OSHA or sexual harassment training. Reports are easily generated that capture employee participation in the courses, and tests can be implemented to ensure franchise employees understood the course materials. This can prove very valuable if liability or legal exposure is ever a concern.

7 Track and Monitor Employee Performance Giving your employees access to the tools, resources and knowledge they need helps to improve their overall performance. Testing and assessment allows you to identify skills gaps and additional areas for needed improvement. Additionally, online learning lets the employee set the pace that their comfortable with this helps with receptiveness and overall knowledge retention. Conclusion Providing ongoing training for all levels of staff ensures that your franchise employees are adapting to your business model requirements. Supporting your training and development programs through learning technology gives your employees access to the information they need when they need it. This ongoing training helps to drive your profitability by improving employee performance, boosting customer satisfaction levels, increasing your sales and reducing your overall expenses. If you re interested in receiving more information about epath s learning technology solutions and how they can benefit your franchise system contact us today at (860) or visit our website at On expanding a brand Employee training is the key to scaling every part of a business. Julie Rice and Elizabeth Cutler, SoulCycle iii i ii iii Inc., Magazine, February 2014, pg. 14