Buying a Franchise in Lebanon: Reviewing Staffing Requirements and Costs

The upfront franchise fee may look straightforward, but significant obligations can be buried in staffing requirements: a full-time manager, specified roles, pre-opening training and franchisor approval of appointments. In Lebanon’s franchise market, it is not enough to ask how many employees you need. You should also ask who decides staffing levels and qualifications, and who bears the cost when those requirements change. This review helps you choose a brand you can actually operate, not simply one whose entry fee you can afford.

1. Identify staffing obligations in the agreement and operations manual

Before committing, ask the franchisor for a written list of mandatory roles at each outlet, required qualifications, the manager’s required attendance hours and minimum staffing coverage during opening hours. Distinguish between an indicative staffing model and a binding requirement whose violation could constitute a breach of contract. A phrase such as ‘adequate staffing in line with brand standards’ does not, on its own, give you a clear basis for calculating costs.

Review the agreement, its schedules and the human resources sections of the operations manual together. The agreement may allow the franchisor to update the manual, introducing additional roles, qualifications or regular assessments. Negotiate advance notice and a reasonable implementation period for material changes, along with a process for discussing their financial and operational impact, rather than assuming every update will be minor.

Ask the franchisor and existing franchisees specific questions:

• Must the franchisee manage the outlet personally, or can they appoint a manager?
• Can one employee cover two roles during quiet periods?
• Which roles are difficult to fill locally, and what alternatives are acceptable?
• Do requirements vary according to the outlet’s size, customer demand and opening hours?

Request a sample staff rota, not just a total headcount. A theoretical staffing figure may not cover breaks, holidays, absences and peak trading days.

2. Build a staffing budget that goes beyond wages

Calculate staffing costs using the actual operating schedule, and review applicable wages, benefits, contributions and statutory obligations with a local accountant. Include recruitment, uniforms, equipment, paid training and cover for absences, as well as any travel or accommodation expenses required by the training plan. Do not treat your own work as free when comparing the viability of different brands; assign it a reasonable opportunity cost.

Separate pre-opening expenses from recurring costs. If the franchisor requires you to hire the team before the outlet opens, wages will be payable before sales begin. Establish when each role needs to be filled, whether training will be available at the right time, and who pays for replacement staff to be trained if an employee leaves after completing training.

Test three operating scenarios: normal trading, lower-than-expected demand and the absence of a key employee. You do not need to rely on generic percentage assumptions; use realistic employment offers, a staff rota and written quotes for the services required. The aim is to establish whether the brand’s requirements allow you to adjust staffing without compromising legal compliance or service standards.

Pay particular attention to any requirement for additional staff during promotions set by the franchisor. Request enough notice to make arrangements, and agree how staffing coverage hours and their cost will be approved before the campaign begins.

3. Establish who the employer is and define the limits of franchisor approval

Lebanon has no comprehensive law specifically governing franchise agreements, nor a dedicated statutory franchise disclosure regime comparable to those in some other countries. The relationship is generally governed by the Code of Obligations and Contracts and the Code of Commerce, while staffing is subject to labour law, social security rules and other relevant requirements, depending on the circumstances. The absence of franchise-specific legislation does not remove employment obligations.

The Lebanese Franchise Association’s Code of Ethics is a professional framework, not a generally binding law in its own right. Do not therefore rely on a commitment to good practice as a substitute for a written allocation of responsibilities. Ask a Lebanese lawyer to review who enters into employment contracts, pays wages, registers employees and manages their day-to-day employment matters.

If the franchisor retains the right to approve the manager or request their replacement, agree objective approval criteria, a response deadline and a procedure for addressing any shortfall. Do not confuse withdrawal of an employee’s brand approval with lawful grounds for terminating their employment: the franchisor’s contractual decision does not, by itself, determine the employee’s rights.

If you plan to bring in a foreign manager or specialist, check in advance which work permit and residency requirements apply to their circumstances and role. Do not assume that brand approval or ownership of a stake in the company is sufficient to start working in Lebanon.

4. Negotiate a contingency plan before signing

An approved manager may leave unexpectedly, or you may be unable to recruit someone with a particular qualification. Request a written process for approving a temporary replacement, a period in which to remedy the situation and the option to train an existing employee. The aim is not to abandon brand standards, but to prevent a vacancy from causing unnecessary disruption to the outlet.

Bring the findings of your review together in a schedule setting out mandatory roles, recruitment authority, approval deadlines, the cost of approval and reapproval, and the process for changing requirements. Also keep a responsibility matrix showing what the franchisor provides and what your company must cover. Ensure that verbal promises of recruitment support are included in the binding documents.

Practical takeaway: Before buying a franchise, request a workable staffing plan, a comprehensive budget and a clear schedule of decision-making authority. The right brand is one whose staffing standards you can meet while respecting employees’ rights and maintaining operations.