Often in franchising, franchise outlets will have turnover of key personnel. They may seek the services of the franchisor to train the new employee. In some cases franchise or training of managers may actually be required to be done by the franchise himself. This is done to maintain consistency and quality control in the franchise outlets throughout the system.

We noticed that in our franchising company this became a very serious issue. In this day and age where employees hold jobs for an average of 3.2 yrs. you can see the problem. In this new paradigm training becomes the key to success. It is for this reason that I added a clause into our franchising agreements below;

4.3.3 New Hires

In the event that Franchisee hires a new location or operations manager or lead technician following completion of the initial training program described in Section 4.1.5, Franchisee will cause each of such new hires to attend a course providing the training required for such persons position within ninety (90) calendar days of the date such person is hired by Franchisee or not later that the date such course is next offered by Franchisor if more than three months after such person is hired by Franchisee.

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

It may be necessary for your company if you are in franchising to address this issue in your franchising agreements with your franchisees. It is therefore recommended that you contact an experienced franchising attorney and address this issue in advance of any potential eventuality or problem. I hope you will consider this in 2006.