So you’re thinking about becoming a franchise owner because you think it would be a good opportunity to start a new career. Well, you’re absolutely right. The job of a franchise owner is both a challenging and rewarding position, and it can often be quite lucrative as well. But what exactly does the day-to-day consist of? Read on to learn about a franchise owner’s job description.
1. Incorporating Franchise Standards
Perhaps the defining task of a franchise owner, in relation to one who starts a new business from scratch, is that the franchise owner is subject to a set of predetermined rules, guidelines, and practices which they will have to implement and maintain. These guidelines, which will trickle down from the franchisor or from the master franchise, may change periodically, and it will be the franchise owner’s responsibility to keep his or her location up to date. The guidelines may pertain to everything from employee uniforms and customer displays to behind the scenes business practices.
2. Calculating Royalties and Other Franchise Fees
With these guidelines, which are designed to ensure your success, there comes a price. That price is paid in the form of royalty fees. For most franchises, these fees are a percentage of revenue, though there are franchises who operate based on a flat rate instead. Either way, the fee structure will be determined by your contract with the franchise. You can probably hire an accountant to help you calculate royalties if you are not great with numbers, but the responsibility of delivering these fees accurately and on time ultimately falls upon the franchise owner.
Obviously franchises run their own marketing and advertising campaigns from the top, but these are general campaigns and their purpose is to increase overall brand awareness, not necessarily to drive traffic to any one location. Therefore, it falls on the franchise owner to set up campaigns to target and engage with local audiences in order to drive them into a particular store.
4. Employee Training and Management
Just as you would likely do if you ran an independent business, you will have to train your employees – or put a system in place for them to be trained – and manage their schedules, performance, and all the other elements that come with having employees. As with every aspect of being a franchise owner, the franchise will provide guidelines or a framework for how employees are to be trained, beyond that, it is the responsibility of the franchise owner.
5. Inventory Management
This is another task you would have to carry out even if you managed an independent business. Your store will need all kinds of inventory and supplies, and ensuring that there are enough of these at all times is the franchise owner’s responsibility (of course, you can train others to carry out such tasks, but it will ultimately fall on you to make sure everything is functioning properly). The difference here though is that often times you will get the inventory and supplies that you need by purchasing them from the franchise itself. If that is not the case, they may have designated suppliers – or certain other purchasing guidelines – for you to follow.
6. The Grunt Work
Though managers are known primarily to delegate, there comes a time where every manager must roll up their sleeves and do the dirty work. This may include: cleaning and scrubbing, troubleshooting faulty equipment, dealing with unhappy customers, working the register, or holding down a spot in the assembly line. With a team of properly trained employees, it is unlikely that you will have to do such work every day, but when people call in sick, quit unexpectedly, or when business is simply too busy, you may find yourself in need of extra hands – and whose are better than your own?
All in all, it’s a lot of work. But being a franchise owner can be a very rewarding experience as well.