Franchise staffing: plan your workforce before expanding

A business can perform well and still conceal a problem that will hinder expansion: its team relies on makeshift arrangements, frequent overtime or informal help. Before franchising, turn that routine into a staffing structure that another business owner can recruit for, organise and afford. In franchising, workforce planning is part of the responsibility to offer a viable operating model, not simply an exercise in estimating salaries.

1. Measure the workload before deciding on headcount

Do not start by copying the business’s current staffing structure. First, identify the work needed to keep the outlet running to the standard promised to customers.

Observe representative periods of operation, including quiet days, busy periods, goods deliveries and closing time. Record which activities take place, how long they take and which need to be carried out simultaneously.

Organise your findings into three groups:

• Customer service and delivery: reception, sales, production and service delivery.
• Preparation and upkeep: opening, restocking, cleaning, organisation and routine maintenance.
• Administration: purchasing, checks, financial controls and people management.

This breakdown reveals tasks that do not appear in revenue figures but still take up staff capacity. Someone available on the shop floor, for example, is not necessarily free to check a delivery without affecting customer service.

Record the owner’s work too. If they cover breaks, resolve complaints and cash up, those hours need to be included in the staffing plan. Otherwise, the future outlet will look cheaper to run than it really is.

2. Turn demand into roles and staffing cover

Using your activity map, define responsibilities before choosing job titles. For each role, describe the expected outcomes, the skills required and the times when someone performing that role must be present.

Next, create a staffing coverage schedule for each time slot. It should show who serves customers, who carries out support tasks and who is in charge of the outlet. Allow for breaks, days off, annual leave and foreseeable absences, in line with applicable Brazilian employment law and collective agreements.

The aim is not to produce a single rota for the whole of Brazil. Trading hours, demand and local conditions may require adjustments. Set operational criteria and identify which adaptations need to be assessed before opening.

Test three situations in particular:

• Low demand: can the team complete essential tasks without staffing costs becoming disproportionate to revenue?
• Peak periods: is there enough cover to serve customers without neglecting cleaning, safety or checks?
• One person absent: is there a workable replacement arrangement that does not continually rely on excessive working hours?

Combining duties may be operationally feasible, but it should not be assumed to be a universal solution. Ask qualified professionals to check that the duties are compatible, safe and compliant with employment requirements.

3. Calculate the full cost of the staffing structure

Basic salary does not represent the full cost of employing staff. Your forecast needs to include statutory employer charges, benefits, provisions for holiday pay and Brazil’s mandatory 13th-month salary, as well as other costs applicable to the employment arrangements and local circumstances.

Also include recruitment, uniforms, occupational health examinations and absence cover where necessary. Ask your accountant to validate the assumptions and distinguish monthly cash outgoings from accounting provisions. Avoid applying a generic percentage as though it were suitable for every city or type of business.

Build demand scenarios with the staffing level each would require. A lean team may look efficient on a spreadsheet but lead to queues, lost sales and excessive workloads. Conversely, recruiting immediately for all future capacity can put pressure on cash flow while the outlet becomes established.

Define observable triggers for increasing headcount: a sustained rise in waiting times, delays to essential tasks or a recurring need for overtime. Assess these indicators together, rather than turning an exceptional week into a permanent staffing rule.

If the model assumes the franchisee will work in the business every day, state this explicitly. Do not describe an operation that depends on the owner’s on-site work as an investment that can be managed remotely.

4. Align the staffing plan with the franchise offer

Law No. 13,966/2019, which governs business franchising in Brazil and repealed Law No. 8,955/1994, requires disclosure of information relevant to this decision. Article 2 requires the Franchise Disclosure Document, known in Brazil as the Circular de Oferta de Franquia (COF), to describe the franchisee’s activities, the required franchisee profile and the requirements for direct involvement in operations and management.

The staffing plan must therefore be consistent with the COF and the franchise agreement. Distinguish operational requirements from planning benchmarks that need local validation.

Article 1 provides that the franchise relationship does not create an employment relationship between the franchisor and the franchisee or the franchisee’s employees, including during training. This does not remove the obligation to comply with employment law, nor should it be treated as absolute protection where improper practices occur. The franchisee should manage their own employees, while the franchisor provides guidance on operating standards, within boundaries reviewed by legal advisers.

In practice: before offering the franchise, bring together a map of roles, a staffing coverage schedule and a complete staffing budget. If these three documents do not support the same day-to-day operation, adjust the model before expanding.