How a Franchise Agreement and a Franchise Disclosure Document differ
There are two documents that are of vital importance...
Major franchise brands occasionally enter the news in Canada, and it's not always for the best reasons. Sometimes, you see articles that either highlight issues within a specific franchise or raise a concern affecting an industry overall. One of those industry issues you might have caught in the news on more than one occasion is staffing.
Whether it's workers seeking higher wages or just a lack of available workers, staffing issues can impact a franchise just as they do an independent business. This truth can derail you as a potential franchisee if you don't look forward to handling hiring, training and the employee process in general.
The good news is that you can minimize potential staffing issues by simply looking at the right franchise brand. Franchises vary greatly from one another in many areas, and this includes staffing levels and other employee-related concerns.
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Consider franchises that don't require employees
Some franchises, particularly home-based and mobile ones, don't normally require staff. You can run these franchises yourself or with a partner. Of course, if you're not going to have staff, that does mean you'll be investing more time into the business, but you'll also have lower overhead costs as a result.
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Look at franchisor staff support
Some brands offer more support and help with the hiring and training of staff than others. A franchise may train workers for you and help you find them, and this can take a lot of snags out of the process for you.
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Weigh the model
A franchise with well-paid, highly skilled workers who will have advancement opportunities will have a lower turnover rate than a brand more fit for younger adults at a lower wage. If the thought of high turnover alarms you, aim for a franchise whose model offers jobs that are more desirable.
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Speak to other franchisees
Talk to current franchisees about their employee experiences. If they've been able to create supportive, happy teams, you can likely do the same thing. But if you discover that half of their time goes toward dealing with staffing issues, you'll need to decide if you would be okay with that or not.
Franchises provide many people with jobs across Canada, and being able to offer jobs to people in your community is a great thing. However, you need to have realistic expectations going into a franchise when it comes to employees, so make your decision wisely.
