Franchise Success Call

Training Is Expensive! But Lack of it Costs More

leadership people planning Sep 19, 2023
Employee training

At times, my clients complain that employee training is very expensive. Especially when, after spending time, money, and resources on their training, they quit and go to another company. So, they have to start the hiring process again to find new talent for their company. 

Aside from the labor issue and the financial loss, the resignation of these employees also leaves business leaders questioning the real reason they left the company.

  • The feeling of frustration is understandable. But what would happen if employees who are not well-trained and they stay in your organization? 

The consequences can be much more serious. That's why business owners must recognize the importance of training.


When untrained employees don't leave

It is not a minor issue. Workers who are not trained don’t know how to implement the business systems, processes, and procedures. They can't do their job with a high level of excellence and are unaware of what is expected of them. As a consequence, they:

  • Make many mistakes and their poor performance gets them demotivated.
  • Give bad service, which can have a negative impact on your sales and expected results.
  • Have a bad attitude because of the constant reprimands.
  • Spread that negative energy and lower the morale of the team.
  • Are not willing to contribute to the business goals

Imagine if such employees stay in your company! But it’s more than just a labor challenge. 

All of these attitudes and actions will cost you money. In other words, what you think you saved in training those crew members will come after you in the long term, costing you sales, customers, and even more staff.

That is why leaders must commit to training their staff because it is a proven strategy to achieve business success.

Don’t miss: This is the NUMBER ONE way to reduce turnover


The advantages of training

Business leaders must develop a training plan for their employees, both in the brand and in the management side of the business. By doing so, they will:


Why you must also train yourself as a leader

It's not just employees who need to be trained. Entrepreneurs and business owners must also keep up to date with their business acumen.

Franchisees, for example, can leverage their franchisors by accessing the tools and processes to train their employees, so they are able to duplicate the brand systems, products, services, and marketing.

Keep reading: 9 ways to leverage your franchisor

What the brand doesn’t provide is management training, which represents the other 50% of the franchise's success. It is up to them, as franchise owners, to acquire that know-how and business skills. 

Independent entrepreneurs have the whole organization at their expense. That is, they have to manage cash, control costs, increase sales, and also, create the management manual, design the training plan, and verify the execution of the brand, product, service, image, and marketing actions.

Whether you're an experienced franchisee, a novice, or an independent business owner, you and your team can achieve the desired business goals by leaning on the franchise systems and formulas we teach at The American Franchise Academy.

We have state-of-the-art programs, designed for franchisees, district managers, and unit managers, where we teach everything they need to move the business forward and achieve success.

To learn more about how our programs can help you, click here!

Get more tips on what you can do to thrive and operate a successful franchise by following us on all social platforms, including our YouTube channel and podcast.


  • Do you know how much it costs you to retain a bad employee?
  • Are you providing your team members with a formal training plan so they can grow within your company?
  • How much money are you investing in retaining your people?
  • As a business leader, do you need to strengthen your business knowledge or are you up to date?