Guide to Buying Another Franchise: Figuring Out Your Employee Model

Expanding your business by buying another franchise can be an exciting endeavor, but it’s not without its challenges. One of the key things you need to get right is figuring out what your employee model is going to look like. This involves a number of key considerations, including how you’re going to scale up your staff, how many additional hires you’re going to need to make, how you’re going to blend the different work cultures and how you plan on handling underperforming employees.

David Brand, founder and CEO of Brand Franchise Group, recently spoke with 1851 Franchise to offer his insights on building a better employee model.

Scaling Up Your Staff

If you don’t have enough employees to handle the operation of the new franchise, your first priority is going to be scaling up your staff. Start by looking at what the new location needs compared to your existing one. What roles do you need to fill? How much work will there be? When are the busiest times? Once you conduct your analysis, you can build a detailed workforce plan that will help you determine how many employees you need and what skills they should have. The trick here is to hire enough people to handle the workload without overstaffing and driving up costs.

“When advertising on platforms like Indeed, provide comprehensive details to attract suitable applicants,” Brand said. “Additionally, leverage the connections of your current employees by encouraging referrals from their networks, including friends and family.”

Leveraging Existing Talent. One way to ensure a smooth transition is to leverage your existing employee pool. Evaluate your current employees to single out those with the skills and experience suitable for your new franchise. Transferring a few seasoned employees to the new location can help establish your company’s culture and operational standards more quickly. However, you want to tread cautiously here so you don’t wind up depleting your original business of its key staff members. Your goal is to create unity between both locations without disrupting the operations of either.

Recruiting and Hiring Additional Employees. If you don’t have enough current employees to spread among the two locations, you’ll need to recruit new talent to fill in the gaps. Consider how much training these new employees will require, especially early on when you might need more “hands on deck” to ensure a smooth start. It’s important to set realistic hiring goals, so make sure you collaborate with your management team and use historical data from your existing franchise to estimate your staffing needs (adjusting for the specific demands of your new location, of course). Finally, keep in mind that you don’t have to do all of your recruiting at once; additional staff can be brought on in phases to align with your franchise’s growth trajectory.

“When you hire someone new, have them train at a current location. When you manage with layers, you create coverage in a system with multiple locations,” Brand said. “You will need to be fully staffed at your first location. You will also need to hire an additional layer of employees and a GM to cover the second location.”

Managing and Integrating Multiple Cultures

You’ll definitely want to mitigate any workplace culture clashes between your original business and the  new franchise. Ideally, the differences between the cultures will be minimal and easy to address. However, there may be some instances where the dynamics and overall atmosphere of the two businesses either require the two cultures to be merged or for one to be completely subsumed into the other.

The key to integrating workplace cultures is to foster an inclusive environment where the values and goals of your business are clearly communicated. Team-building activities will encourage old and new staff members to work together, while cross-location meetings can be useful for bridging cultural gaps between the original business and the new franchise.

It’s important for your team leaders to buy into the integrated culture and act as role models, emphasizing the importance of mutual respect and collaboration. Training sessions on diversity and inclusion can also make the cultural integration process smoother.

Finding the Right Full-Time vs. Part-Time Mix

Making the decision between full-time and part-time staff is going to depend on your business model and operational needs, as both types of workers come with their own sets of pros and cons. Full-time employees often offer more stability and can be more committed, which is beneficial for roles that require consistent and deep engagement. Part-time employees, on the other hand, offer flexibility and can help manage peak times without long-term financial commitments. A blended approach might be your best bet here, with full-time staff filling core positions and part-time workers supplementing them during busy periods.

“The simple answer is you should hire both full-time and part-time employees,” Brand said. “You may have some that are currently going to school or need to work around childcare. Hire great people and work around their schedule.”

Addressing Underperformance

As unpleasant as dealing with underperforming employees can be, it’s crucial for maintaining high standards and morale. By implementing a structured performance management system with clear metrics and regular reviews, you can identify struggling employees early and help them address their issues through constructive feedback and training/mentorship programs.

In a worst-case scenario where there’s no improvement despite support, it might be necessary to let the underperformers go, so you need to make sure that your system is fair, transparent and in line with existing labor laws. Having a clear, documented process can protect your business from potential legal issues while maintaining a positive workplace environment.

“Create a baseline standard on what good looks like,” Brand suggested. “Do they know what they’re doing? Did I train them well? If they’re not, exit them out. KPIs are a good indication of them delivering on a promise by making customers happy and owners profitable.”

A Cohesive, Efficient Team Will Drive Your Franchise’s Success

Adding another franchise to your business involves careful planning and strategic management of your workforce. By scaling up thoughtfully, managing multiple workplace cultures, balancing your full-time and part-time hires and effectively handling underperforming employees, you can create a cohesive, efficient team that will ultimately drive your franchise’s success. With the right employee model in place, your new franchise can thrive and contribute significantly to your overall business growth.

For more information on buying another franchise, check out these related 1851 Franchise articles:

• Guide to Buying Another Franchise: Define Your Why
• Guide to Buying Another Franchise: Search For Brands That Align With Your Financial Outcome
• Guide to Buying Another Franchise: Verifying a Brand’s Availability in a Prime, Manageable Market
• Guide to Buying Another Franchise: Evaluate the Culture of the Brand