Franchise staffing: what to check before you buy

A franchise may look affordable until you calculate the staffing needed to open consistently and deliver the promised service. Before joining a franchise network, turn the franchisor’s proposed staffing model into a budget and work schedule you can verify. Simply asking how many employees an outlet has is not enough: you need to know which tasks they cover, for how long and under what conditions.

1. Translate the business model into working hours

Ask the franchisor’s head office for a description of the roles required at an outlet comparable to the one you plan to open. This should distinguish between duties, qualifications, minimum staffing levels and requirements at peak times. A headline employee count may conceal part-time contracts, work done by the owner or additional staff not mentioned in the sales presentation.

Build a typical working week that includes:

• Customer service throughout the planned opening hours.
• Preparation before opening and cashing up.
• Receiving deliveries, restocking and cleaning.
• Administration, ordering and team coordination.
• Breaks, training and tasks that require several people at once.

Count hours and duties, not just people. Two employees do not necessarily represent two full-time posts, nor can they cover any schedule without limits. Equally, an hour without customers is not automatically spare capacity: essential behind-the-scenes work may still need doing.

Request sample rotas from outlets with a similar size, level of activity and opening hours. You do not need employees’ personal data, but rather aggregated information that lets you check whether the proposed staffing arrangements can be replicated.

2. Calculate the full employment cost

The advertised salary for each role does not represent the total cost to the business. Commission an employment adviser in Spain to prepare a cost projection based on the applicable collective agreement, the actual duties and the outlet’s location. Do not assume that every business operating under the same brand must apply exactly the same collective agreement.

The budget should separate gross salaries, employer social security contributions, any applicable pay supplements, and recruitment or training costs. Include an allowance for replacement staff and extra cover where needed. Annual leave is paid: the additional cost arises if you need someone else to maintain cover, not from counting the absent employee’s salary twice.

Compare three scenarios: launch, normal operations and peak periods. During the launch phase, you may need training and overlapping shifts before sales reach a stable level. If head office requires you to recruit in advance, establish who pays for that period and what happens if opening is delayed.

Also check how much work the model assumes the owner will do. Even if you initially take no pay, estimate the cost of hiring someone to perform those duties. This will help you avoid mistaking a business that relies permanently on unbudgeted work for one that is adequately staffed.

3. Identify who employs the staff and what obligations they take on

In a franchise, the franchisor and franchisee are independent businesses. As a general rule, if your business employs the outlet’s staff, it takes on the employer’s obligations. Recruitment recommendations from head office or its customer service instructions do not, by themselves, transfer those obligations to the franchisor.

In Spain, key legislation includes the Workers’ Statute (Estatuto de los Trabajadores), the applicable collective agreement and Law 31/1995 on the Prevention of Occupational Risks, alongside social security rules. You must make provision for employment contracts, payroll, daily working-time records, rest breaks, workplace health and safety, and appropriate training for each role. The brand’s commercial standards do not override these requirements.

Franchising is also specifically regulated by Article 62 of Law 7/1996 on Retail Trade and the provisions of Royal Decree 201/2010 that remain in force. Pre-contractual information must be provided in writing at least twenty working days before the contract or preliminary agreement is signed, or before any payment is made to the franchisor. This framework does not replace your own assessment of employment requirements or turn an indicative staffing model into a guarantee that it will be sufficient.

4. Review the contract’s staffing requirements

Check the budget against the contractual obligations: minimum opening hours, mandatory roles, qualifications, uniforms, training and requirements for managers or supervisors to be present. Ask which are recommendations and which are enforceable conditions.

If head office is involved in recruitment, establish whether it simply suggests candidates or provides an additional service, how much that service costs and who makes the final decision. For compulsory training, clarify the duration, travel and accommodation arrangements, and how the time spent training must be treated under employment law.

Also ask for clarity on how staffing requirements can change and how much notice you will receive. Longer opening hours or a new role may increase recurring costs without any change to the franchise fee.

Practical conclusion: before signing, put together a workable weekly rota, a reviewed staffing budget and a written list of staffing requirements. If they do not align, resolve the discrepancy before committing your investment.