Opening a Franchise: Assessing Your Staffing Needs

Staff costs can radically alter the financial viability of a franchise outlet. A business model presented as easy to run may need more staff cover than you expect, particularly once you factor in shifts, rest periods and absences. Before joining a franchise network in Italy, check not just how many people the franchisor recommends, but how that staffing level will allow you to carry out the work required in practice.

1. Translate the business model into working hours

The question ‘how many employees do I need?’ is only useful once you have established which tasks need to be covered. Two shops with the same opening hours may have very different requirements, depending on customer service, deliveries, cleaning, product preparation and administrative work.

Ask the franchisor for an outline of a typical working day, then draw up a weekly schedule covering:

• public opening hours and the staff cover required before and afterwards;
• tasks to be completed during each time slot;
• the number of people who need to be on site at the same time;
• skills or qualifications required for particular activities;
• additional work on delivery days or during busy periods.

Count the hours you need to cover, not just the people. Having one person present throughout the day and two others working only at peak times is not the same as having three staff members available at all times. Nor do opening hours necessarily match working hours.

If the franchisor’s model is based on an existing outlet, ask what makes it comparable to yours: its size, services, customer traffic and organisation. Staffing levels that work elsewhere will not automatically suit the location you are considering.

2. Establish who employs the staff and what requirements the brand imposes

Italian Law No. 129 of 6 May 2004, which governs franchising in Italy, defines it as a relationship between legally and economically independent parties. Joining a brand’s network therefore does not mean becoming one of its branches or automatically handing over responsibility for managing your employees.

Under the usual arrangement, where the franchisee hires the staff, the franchisee is the employer. Support from the franchisor with recruitment or work organisation does not replace the obligations that come with that role. Employment, social security, and health and safety rules still apply, alongside the applicable collective bargaining provisions.

Before signing, check whether the contract or any documents it refers to specify:

• minimum staffing levels or particular professional roles;
• a requirement for a manager to be present at certain times;
• opening hours that affect shift planning;
• procedures for selecting or approving candidates;
• requirements for staff to attend meetings or refresher training.

Distinguish operational recommendations from contractual obligations. Also ask how much flexibility you will have to adapt rotas to local demand without compromising the agreed standards. Instructions from the brand cannot justify failing to respect workers’ rights and protections.

3. Calculate the full cost, not just wages

An estimate based on take-home pay is not enough to decide whether to invest in a franchise. Ask an Italian employment and payroll adviser (consulente del lavoro) to prepare a cost estimate based on the actual duties, job classifications, working hours and employment contracts available to you.

The calculation should separately identify, at a minimum, gross pay, employer social security contributions, compulsory insurance premiums, statutory end-of-employment pay (TFR) and any additional monthly salary payments required. Also allow for any pay supplements, cover for absent staff, recruitment and payroll administration.

These costs do not all become payable at the same time: ask for both the total annual cost and a payment schedule. Avoid applying a standard percentage across all businesses, as the amount depends on the specific employment arrangements.

Be explicit about the hours you expect to work yourself, too. They are not necessarily an employee cost, but leaving them out can make an operation look viable when it only works because you are constantly available. Assess what it would cost to replace you when you cannot be there.

4. Test your rotas before committing

Plan a normal working week, then repeat the exercise allowing for annual leave, an unexpected absence and a period of higher demand. Check with your adviser that the rotas comply with the applicable rules on working hours, breaks and rest periods. If cover falls apart as soon as one person is absent, your initial staffing estimate may be too low.

Law No. 129/2004 requires the franchisor to provide a complete copy of the contract and the annexes required by law at least thirty days before signing. Use this period to compare the operational obligations with your staffing plan. Do not assume, however, that the mandatory documentation includes a tailored staffing cost estimate: request and check this separately.

Practical tip: before signing, obtain three things that align with one another: a realistic weekly rota, a full employment cost estimate and written confirmation of the brand’s staffing requirements. If they do not match, revise your plans before investing.