With the job market in constant change and many large companies downsizing or switching part of their production overseas, people in their forties and fifties are feeling less secure in their jobs. More and more people are considering a major career change. This may involve purchasing a business. Franchises offer more security than stand-alone businesses, there may be support and brand recognition with franchises. Success depends on purchasing the right franchise, running it correctly, and hiring the right people to work with you.
Purchasing The Right Franchise
Not everyone will be happy running a fast food restaurant. There are many retail business franchises, some great, some not so much. It is important to choose a franchise that you have an interest in. You will be spending a lot of time managing the business, you won’t want to get into something that will not be enjoyable to run. It is a good idea to purchase a franchise that deals with a product or service that you have an interest in. Choose a franchise that will fit into family priorities and the amount of time you can devote to it. Many franchise businesses require evening and weekend work. Another major concern is hiring trustworthy employees to work the times the owner will not be on site. Another huge consideration should be the total costs of purchasing and running a franchise. The hidden costs can spell financial disaster for the unwary. Does the franchise parent company offer the training and support that will be needed at the beginning? Is there a good track record for the franchise? Is the Corporate Management of the Franchise acceptable? Is the franchise well suited to the area as far as product and customer base are concerned? What competition is there? One way to gauge this is to visit several of the franchises you are considering and talk to the owners. What will the Worker classification be? Will there be corporate assistance with Franchise Employment? These are all great and valid questions to ask.
Staffing The New Franchise Business
Once a franchise has been chosen and purchased, the business must be staffed with hard working, dependable employees, and management help. Not many franchises can be one person operations. Franchise employment can involve different classifications of employees and different payment protocols. Restaurant employee pay is different from a cleaning service employee wage. As the franchise business grows there will also be employment growth. Employees are often the most valuable asset of a business, but they can also be the biggest challenge if the business owner does not have the proper policies and preparations in place. There are government rules to follow, tax reporting forms to fill out, minimum wage rates to honor, and other challenging employment related issues to contend with.
Some important employment issues to watch in 2016 are:
- The use of independent contractors and their proper classification and payment.
- Paid sick leave having to do with federal contractors and subcontractors.
- The impact of union contracts in the area of the franchise.
- Possible changes in the minimum wage at the local and national level.
- State and Federal tax laws and reporting requirements.