Franchiser Company Structure

The organization required to provide adequate support to franchisees is typically leaner than a similar organization used to support the expansion of a company-owned operation. Franchisers typically utilize existing staff when recruiting for many of these positions. It is also usually possible to divide some responsibilities and costs between company and franchised operations during the early stages of the development schedule.

Functionally speaking, a franchise organization can be divided into three areas: franchise sales, franchise support, and administrative support. The franchise support organization can be further broken down either chronologically (start-up support versus ongoing support) or logistically (internal support versus field support).

The number of new hires and the nature of their responsibilities are directly correlated with two factors: speed of franchise system growth and size of the franchiser. Speed of growth will affect sales-oriented positions (e.g., franchise sales manager, franchise salespeople, training positions, etc.), whereas the size of the system will affect support functions (e.g., field supervision, consumer marketing support, etc.) and overhead costs of administrative functions (primarily finance, legal, and human resources).

Based on my past experience with franchisers, it has been determined that a well-staffed franchiser organization usually includes a president, vice president of franchise sales, vice president of operations, vice president of administration, a general counsel, and various support functions. Unless an extremely aggressive franchise sales effort is contemplated, these positions should be hired on an "as needed" basis, and the organization would not be fully staffed at the outset.

Christopher_Conner

Enter Your Email Address For Update :

Delivered by FeedBurner

Related Post :