Franchisor Agreements and Requirements for On-Going Training and Associated Costs

Legal Article Guide
By: Lance Winslow

In order to maintain consistency and quality control in a franchise company the franchisor or master franchise must continually do training. When a new franchise is opened there is the initial training, however as things change and new methods are discovered which are more efficient, new training must also occur. Ongoing training is the key to maintain the brand name.

It must be stipulated in the franchisor agreements that there will be associated costs for such ongoing training. In fact, regulators of franchising in many states as well as the federal level require this issue be addressed in the franchisor agreements and disclosure documents. Below is a copy of a clause that I put into all of our franchise agreements;

3.6.5 On-Going Training and Associated Costs

Franchisee will be exclusively responsible for paying any and all fees, charges, travel, living and other expenses and compensation incurred by Franchisee and their managers and crew leaders in connection with attending these programs, seminars and courses including any registration fee that may be charged by Franchisor or the training providers.

---- ---- ----- ----

Since this is a requirement of franchisors each franchise company will need to get with legal counsel and a franchise attorney to best decide how to address this issue. Consider this in 2006.

Lance Winslow - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs/

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