Hiring key management during a tight economy: the challenge in today's economic climate is to structure the strongest franchise management team to reach the next levels of growth.

Author:Kushell, Douglas T.


The key to having and building a successful franchise business in any economy is only possible if you hire, train and manage the best people to perform the task that your company needs. How do you accomplish this?

Franchise businesses need several basic types of people depending upon the size of their company. We classify franchisors into three major sub-groups based on the number of units they presently have. The first sub-group is franchisors with less than 100 units. The second sub-group is systems that have between 100-300 operating units. The third sub-group has 300 or more units.

Each sub-group has distinct staffing needs, as to be expected. The challenge in today's economic climate is to structure the strongest franchise management team to reach the next levels of growth. This is a sensitive balancing act for many franchisors, irrespective of their size enabling them to move forward and meet their annual projections.

Most new franchisors expect to be personally involved in their new venture and will function as their own chief operating officer with particular emphasis on their prior particular skills and experience.

Hire Experience

However many franchisors recognize at this level that for them to provide the proper infrastructure for expansion they need to hire an experienced senior franchise generalist. This individual is skilled in all critical areas of operations, training, franchise sales, finance and franchise support. Compensation consists of a base salary, plus bonus. Many experienced generalists who have successfully grown franchise systems enjoy the challenge of start-ups. A key component for the franchisor to consider is providing some type of equity for this key franchise professional.

Franchisors with 100-plus units already have attained certain brand recognition and demonstrated that its system, when followed as taught, will generate attractive returns for franchisees. Its organizational structure now needs a CO0. Sales projections are increased as are the number of sales people; international franchise sales and multi-unit franchise sales programs are developed or expanded. Additional field business consultants are needed to effectively "root" the increased number of new units, as well as service the more mature franchisees. CEOs can be compensated in several different creative methods. The same is true for the additional sales and operations staff. Compensation for these franchise specialists...

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