How Franchisees can get ready to start a Franchise Business

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Franchisors should support their new franchisees, to confirm they have their team identified and in place before the franchise is ready to operate & you’re the best franchise to own. In addition, the franchisor should know how the franchisee intends to operate their business.

Before investing in a franchise business, the future franchisee should know the primary roles and structure of their franchise personnel. As it draws closer to finalizing the franchise agreement, crucial issues need to be answered and preparations put in place.

One area that requires thinking and planning is who the franchisee will rely upon to help manage the new business. I’ve seen instances when a new franchisee had planned on having a particular person work in the business and then the person had a last second change of heart.

I’ve also experienced firsthand, cases when a franchisee hired new employees who actually stood around and were on the payroll before the business was up and operating.

Screening, hiring and deploying the right people to help the new franchisee operate their franchise is a fundamental prerequisite for a successful franchise.

Here are some tips for franchisees considering their important team:

1. Functions and Responsibilities

Identify the functions and responsibilities that need to be performed and who will do them. Before choosing who, you’ll need on your team, you will need to know what needs to be done. The franchisor should include personnel biographies, job descriptions and recruiting recommendations in the operations manual. If these aren’t available, the prospective franchisee should question the level of franchisor assistance and resources. Be sure to specify the hiring sequence. What role is most necessary to starting up the franchise? Will you require one highly qualified individual or will two employees at around the same cost fulfill your needs?

2. Recruitment Strategy

After the tasks and roles have been determined outline how you’ll recruit. Do you have somebody in mind? Will you need to publicize the positions? Is a spouse of the family member working in the franchise? Do you plan on networking to find someone?

3. Hiring & Payouts

Identify the timeframe of your hires. Don’t bring people on too early and pay unneeded payroll money. Unless you foresee the business getting off to a roaring start you want to avoid having surplus workers at the outset. Conversely, if you delay getting the correct employees on board the franchise operation could be more challenging to run.

4. Perks & Benefits for the Staff

Determine how the key staff will be compensated. Consider employing bonuses and incentives that are performance driven. This method could assist preserve valuable working capital during the start-up period of the franchise. It may assist attract motivated individuals who have the self-confidence to perform successfully. Avoid providing equity in the franchise except to an investor.

5. Staff Management

Have a plan for replacing employees who leave the franchise. The smaller the franchise, the more vital staff will be to the operation of the business and the more difficult it can be to replace them. This is why it’s crucial to carefully plan your employment needs and examine employee skills.


Individuals seeking a franchise need to plan and identify the important members of their crew. Before a franchisor grants a franchise, they should interview the potential franchisee about their personnel intentions. Their reaction could provide information as to their qualities to be a successful franchisee.

Conclusion

Undoubtedly, the most significant activity that franchisors undertake is franchise development, which involves franchisee candidate recruitment, selection, processing, and qualification. Failure to create profitable franchisees can result in declining franchisee performance financially and lower franchisor royalty income.

Franchisors can finance and expand their franchise organization, increase franchise brand recognition, and benefit both franchisees and the franchise brand with effective franchise development.

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