If you are considering a franchise as a route to owning and operating your own staffing firm, you may wonder just what you get when you pony up that franchise fee. You are wise to investigate. The reality can widely vary depending on the company you partner with. It’s essential to investigate the opportunity thoroughly before you commit.
Here are a few factors to consider.
What is NOT included? When you begin your research, you might look at the franchise fee and think, “Hmm. That’s doable.” Take a step back to assess your total investment before jumping in. The fee will typically not include the physical location, and operating costs will be on you. Be sure you have enough capital on hand to get you through the first two years it’s likely to take for your staffing business to turn a profit. Talk to other franchisees to get a realistic view of what to expect.
Look for at least the following to be included:
Your fee should include the training you need to get you off the ground. That will consist of lessons on operations, services, cost control, cash flow, recruiting, sales and marketing, scheduling, time tracking and software. You should also have full access to a Learning Management System (LMS) for further self-study and reference.
Franchisees should have access to all trademarks, marketing, products, literature and well as a website page customized to your location and a social media presence. Ask about an initial prospect list to get you started. Typically, you will be expected to replenish marketing materials at your own expense. Some companies run companywide advertising franchisees can buy into, or you may be responsible for your own territory’s advertising, within company guidelines.
One of the most significant advantages of owning a franchise, besides name reputation, is the tested back-office infrastructure and support provided. This should include CRM software and coverage and support for workers’ comp, insurance, payroll financing, payroll & tax processing, HR assistance and front-office software.
Questions about what’s included in a staffing agency franchise?
We would be happy to answer any questions you may have. At NEXTAFF, we help staffing entrepreneurs achieve their dreams.