Buying a franchise: planning your staffing needs in Portugal

A fully fitted shop and a well-known brand do not guarantee a viable business if there are too few people to serve customers, prepare orders or cover opening hours. Before buying a franchise in Portugal, turn its operational requirements into a staffing plan. Within a franchise network, working methods are shared, but recruitment and employment costs generally fall to the company operating the outlet.

1. Translate the brand’s operating requirements into working hours

Do not simply start by asking how many staff a similar outlet employs. Start with the tasks and when they need to be carried out. Two shops with the same turnover may need different staffing levels because of their opening hours, product preparation requirements or peaks in customer demand.

Ask the franchisor for an operational breakdown of a typical week, distinguishing between:

• Customer service during opening hours;
• Preparation before opening and cleaning after closing;
• Deliveries, stocktaking and restocking;
• Administration and staff supervision;
• Training and meetings required by the network.

Draw up a schedule by day and time slot. For each slot, identify the roles required and how many people need to be present at the same time. Include peak periods, but also tasks that still need doing when there are no customers.

Opening hours are not the same as total working hours. If your budget only covers the time when the doors are open, you may be underestimating a significant part of the operation.

2. Calculate the full cost, not just salaries

Once you have estimated the hours required, ask your accountant to prepare an annual staffing cost projection. Compare proposals from different brands on the same basis: the total cost to the business, rather than employees’ take-home pay.

The projection should include gross pay, holiday and Christmas allowances, employer social security contributions and workplace accident insurance. Add the cost of occupational health and safety arrangements, training and any other applicable expenses.

Meal allowances and additional pay for particular working arrangements should be checked against the employment contract, any applicable collective labour agreement or other collective regulatory instrument, and the specific circumstances. Do not assume that every business faces exactly the same costs.

Separate recruitment, uniform and initial induction costs from recurring expenses. If training involves travel, clarify who pays for travel, accommodation and working time.

Include the buyer’s own work too. Even if you do not initially draw any pay, assign a cost to your time in the financial assessment. Otherwise, an outlet may appear profitable only because it relies on unpaid work by its owner.

3. Check your legal and contractual responsibilities

Portugal has no specific franchise law or mandatory pre-contractual disclosure document in a prescribed franchise-specific format. The general contract rules in the Portuguese Civil Code apply, including freedom of contract and duties of good faith during negotiations and performance, as set out in Articles 405, 227 and 762.

This does not remove employment law obligations. When the franchisee’s company hires staff, it generally takes on the role of employer. It must comply with the Portuguese Labour Code, social security contribution obligations, occupational health and safety rules, and any applicable collective labour agreements or other collective regulatory instruments.

The brand’s operational guidelines do not replace these obligations. Demanding opening hours must be reconciled with working time limits, rest periods, annual leave and lawful scheduling arrangements.

Before signing, identify any brand requirements that affect staffing: the presence of suitably qualified managers, minimum staffing levels per shift, compulsory training or extended opening hours. Ask for written clarification of ambiguous terms and have the plan reviewed by a professional with employment law expertise. Do not treat a sample rota supplied by the network as a guarantee of legal compliance.

4. Test for absences and recruitment difficulties

A team sized only to cover a week in which nothing goes wrong is vulnerable. Run three simple tests: an employee taking annual leave, an unexpected absence and a delay in recruiting for an essential role.

For each situation, record who will cover the tasks, what qualifications they need and the additional cost. Do not assume that overtime or temporary contracts can cover every gap: their use is subject to specific rules.

Assess local recruitment conditions too. Look for comparable job adverts, consult employment services and check whether candidates are available for the proposed hours. The salary in your budget may not be enough to attract people with the skills you need.

Practical takeaway: before choosing a brand, put together a weekly staffing schedule, a comprehensive annual budget and a cover plan. If the business only works with unlimited availability from the owner or no room for staff absences, reconsider before making any commitments.