Workforce Planning Before Granting a Franchise in Saudi Arabia

Your outlet may succeed because its manager knows when to call in an extra employee, or because staff from a neighbouring outlet step in during busy periods. A new franchisee may not have that support. Before turning your existing business into a franchise in Saudi Arabia, you need a clear staffing model: which roles are needed, when must they be covered, and what happens when someone is absent? These details help build a franchise network that maintains the customer experience without relying on arrangements that are not clearly documented.

1. Calculate the workload, not the outlet’s headcount

Copying the headcount of a successful outlet is not enough. That outlet may operate different hours, handle more complex orders or benefit from central support services that do not appear on its staff list. Start by identifying the tasks essential to running the business, then link each task to the time and skills it requires.

Observe ordinary trading days and busy periods, recording the time spent on preparation before customers arrive, service, cleaning, receiving deliveries, stocktaking and closing. Do not calculate staffing needs based on trading hours alone: work before opening and after closing is part of the model’s cost.

Create a profile for each role covering:

• Core tasks and the skills needed to perform them.
• The periods when the role must be covered.
• Tasks that can be combined with it without disrupting service or compromising safety.
• Who provides cover during an absence, and the limits of their authority.

Distinguish between a ‘role’ and an ‘employee’. One person may handle two tasks during a quiet period, while those same tasks may require two people at peak times. This gives the franchisee a basis for planning, rather than a fixed number that is difficult to explain or adjust.

2. Build a rota that accommodates peak demand and absences

Turn the role profiles into a staffing rota covering each part of the day. Set the minimum staffing level needed to operate, then explain when increased demand calls for additional staff. Use indicators that outlets can monitor, such as a backlog of orders, longer waiting times or an essential task being left undone, rather than a general instruction to ‘add staff when needed’.

Test the rota against actual operating records. Can the team serve customers and complete a stocktake at the same time? What happens if the person responsible for opening is absent? Who handles closing if service for the last customer runs over? The aim is not to assume the worst at all times, but to identify where one person’s absence could bring service to a halt.

Also distinguish between three separate needs: the team preparing the outlet for launch, the regular team for day-to-day operations, and temporary cover for seasonal demand or staff leave. Combining these needs into a single figure may lead the franchisee to recruit too many permanent staff or open with an insufficient team.

These are suggested operational controls, not a substitute for labour law requirements, Saudisation requirements for employing Saudi nationals, or occupation-specific rules relevant to the business. Review shift patterns and qualification requirements with an HR specialist against the rules in force. Do not assume that your existing outlet’s rota will automatically suit every new location.

3. Allocate responsibilities within the Saudi legal framework

Franchise relationships in Saudi Arabia are governed by the Commercial Franchise Law and its Implementing Regulations. The Law applies to any franchise agreement performed within the Kingdom. Unless the parties agree otherwise in writing, Article 8 sets out obligations for the franchisor, including detailing the business model, supplying operating manuals, training the franchisee’s employees and providing the necessary expertise.

However, training employees does not automatically make the franchisor responsible for recruiting them, entering into their employment contracts or paying their wages. Clearly specify who sources candidates, conducts interviews, checks qualifications, issues job offers and bears the costs. If the franchisor retains the right to assess the outlet manager, explain the assessment criteria and process without presenting approval as a guarantee of the employee’s future performance.

Article 11 requires the agreement to include both parties’ obligations concerning training for the franchisee’s employees and any fees payable to the franchisor, including training fees where applicable. If you will provide an opening support team, define its scope, duration, costs and the limits on any extension. Distinguish this support from any recruitment or labour supply service you may offer, as those services require a separate review of the applicable legal requirements.

Disclose obligations that affect the investment decision early. Remember that Article 7 requires the disclosure document to be provided at least 14 days before the agreement is signed or any payment relating to the franchise is made, whichever occurs first. Do not leave material staffing obligations unexplained until the set-up stage.

4. Deliver a model the franchisee can use

Bring the results together in a concise, practical pack: a staffing structure, role profiles, a coverage rota, an absence cover plan and a list of each party’s responsibilities. Add a cost model covering wages and associated recruitment and operating costs, as applicable, clearly distinguishing estimates from verified costs. Do not present your outlet’s staffing costs as a guaranteed rate across all cities.

Ask a manager who was not involved in preparing the pack to use it to build a rota for a week’s operation. If they need to come back to you to interpret every shift, the model still relies on verbal knowledge. Resolve any ambiguity, then appoint someone to review the assumptions whenever operating hours or the nature of the service changes.

Practical takeaway: Before granting a franchise, make sure the franchisee can establish whom to recruit, when they are needed, how to cover their absence and what the franchisor will actually provide. A good staffing model makes operating costs and responsibilities clear before commitments are made, not after the first staffing shortage.