How does a restaurant franchisor train their foreign franchisees - Essay Example

How does a restaurant franchisor train their foreign franchisees Issues arising from training of foreign franchiseesToy Roma is one of the famous restaurants in the US that operates on a global level. One of the strategies used by the restaurant to expand globally is franchising. One of its franchisees is in South East Asia (Tony Roma). The mistakes made by its franchisees are more likely to affect it. The restaurant finds it necessary to train its foreign franchisees. One of the issues that could arise from training of foreign franchisees includes differences in business laws and customs in different countries.

The franchiser must ensure that foreign franchisees are trained on applicable business laws. A franchiser has to ensure that the trainings are aligned with the business laws in each country. Addressing this issue through training is vital because it prevents international business from experiencing legal issues related to business activities in other countries. 2. Consequences of the issueIssues related to business laws in different countries affect both franchiser and franchisees (Asill & Goldman 24).

Failure to address differences in business laws may make both franchiser and franchises to experience labor issues. For instance, different countries have different payment standards for workers in franchises. For instance, the minimum pay for workers in the US restaurants is 7 dollars per hour. Such standards cannot be equally applied in other countries. Apart from payments, labor laws may differ on how workers are compensated in case of injuries and other work related problems. Failure to train franchisees on such issues may lead to issues such as underpayment or exploitation of workers by the franchiser and franchisees.

Failure to train franchisers effectively on specific foreign business laws may make the franchisers and franchisees to experience unhealthy competition issues (Asill & Goldman 24). The franchiser has to ensure that differences in competition laws in foreign countries are effectively addressed. For instance, different countries have different market regulations that protect the local business persons from unhealthy competition. Failure to address this during training may make both the franchiser and franchisees to incur huge legal penalties.

In addition, it is important to know how the franchiser and its franchisee are protected in other countries. For instance, failure to addresses the difference in trademark laws and other related business laws such as intellectual property laws in other countries during training may make a business and its franchisees to suffer unhealthy competition in foreign countries. Failure to address labor laws issues during training may also damage the reputation of a business and its franchisees in the market.

For instance, if a franchisee does not effectively address employees’ safety issues as required by a country labor laws, it may create a public impression that the franchiser and its franchisees do not care about the well being of its workers. This may make the business to lose it customers. In the current market world businesses attract customers with their goods reputations.3. How to resolve the issuePrior to training its franchisees, the franchiser should conduct a thorough research on different business laws in other countries.

The process will enable it to offer helpful and relevant training to its franchisees. In addition, the franchisor may use a legal counsel to address the issue during training.Works CitedAsbill, Richard M, and Steven M. Goldman. Fundamentals of International Franchising. Chicago, IL: American Bar Association, 2001. Print.Tony Roma. Franchise Information. Tony Roma. 2013. Web. 2nd December 2014.