Franchise Owner Job Description, Career as a Franchise Owner, Salary, Employment
Definition and Nature of the Work, Education and Training Requirements, Getting the Job
Education and Training Bachelor’s degree
Average Salary Varies – see below
Job Outlook Good
Basic Job Description
A franchise owner is someone who starts their own business. Instead of coming up with their own idea and starting from scratch, they buy the rights and blueprint of a business that already exists and is willing to have multiple locations. Franchise owners familiarize themselves with the routines and traditions that come with the business. Examples of popular franchises are McDonalds and other fast food restaurants, stores like WalMart and Meijer, and hotel chains such as Hilton and Best Western. Franchise owners must understand how to run and operate a business, but it will be easier if they have a franchise because the basic foundation of how the business is run will already be developed.
Education and Training Requirements
For any business owner, it is beneficial to at least have a Bachelor’s degree in business, marketing, economics or another related field. Owning a franchise is very similar to owning a business that was started from scratch. Business owners must understand all the legalities and fundamental skills needed to operate a business. Some schools with business programs also offer classes on franchise ownership, so someone who plans to eventually own one may find it beneficial to take these courses.
Many franchise owners will start off working as a regular employee for a franchise. Someone who would like to open a Starbucks one day could start off working as a barista, and through school advance to managing a store to gain experience with the company and understand more of what it takes to operate the business. Working in a manager position gives a better look at handling financial aspects of a business as well as standard procedures for shipping and receiving products, opening and closing the store, and other practices that need to be followed.
Some franchises offer training courses for anyone who plans to open a franchise. This gives them knowledge of specific practices within the business that are not taught in regular business courses. This will also give the potential franchise owner information on where they receive products, how the accounting and managing system works, and contacts for any information that could be needed.
Getting the Job
Franchise owners gain the ownership and rights to start a chain of the business by investing in the company. Franchises vary in the amount required for an investment. Some may require as low as a $50,000 investment to start a business, while others may require up to $175,000 or more. A franchise owner will need to be able to invest this amount of money as well as have enough to rent a space for the business, refurbish the place to meet the aesthetic criteria for the franchise, and any other expenses needed to get the business up and running. Often times it will cost a million dollars just to get the business started.
Franchise owners need to have the mindset of a business owner and just as much motivation and passion. Franchise owners need to be prepared to work long, stressful hours in the beginning and invest money without expecting a big profit for the first several years. Franchise owners cannot give up or get discouraged easily and must be able to keep going even if it takes business longer than expected to pick up.
Franchise owners also need an eye for who they want working for them. They will have to conduct plenty of interviews in the beginning to find employees who will benefit their business, especially in the beginning. They will also need a professional sense of authority and be able to manage an entire group of employees.
Job Prospects, Employment Outlook and Career Development
Franchise owners usually start off owning one franchise in a familiar location and getting the business running for several years. If business grows and is successful, some owners will open another branch in another location since they are familiar with how things are done. This will give them a bigger profit. Some franchise owners will also branch off by opening a completely different franchise as well. Some franchise owners have grown to own several different franchises to create an entire strip mall or fill a street with restaurants, hotels and stores. If a franchise owner owns a Starbucks near a college campus and attracts plenty of college students, they may eventually open a bookstore nearby as well, or even a bar that will attract college kids on the weekend. Demographic strategies have helped many franchise owners to create successful communities for business.
Employee outlook for a franchise owner depends on the franchise they plan to open as well as the location where they plan to put it. The career of a franchise owner will not successfully develop if they open a store that is going out of business in other locations or not ideal for the demographic of a specific location. If they want to open a business where the population is not increasing steadily or at least staying the same, they should consider the risk of not being able to thrive more than several years or consider opening a business that is more likely to survive in the area.
Working Conditions and Environment
Franchise owners spend most of their time handling paperwork and schedules in an office in the back of the store. They handle payroll expenses and order new products according to inventory counts or product demands. When they are not handling these business procedures and making sure all finances are balanced, they will walk the floor of the business and make sure employees are doing their jobs properly.
Franchise owners have to do all the dirty work that comes with owning a business. They are almost always in charge of firing employees, holding employee meetings to address issues or concerns, making sure health codes are being followed, dealing with unsatisfied customers, and making sure everyone is happy. Owners are the first person anyone wants to go to when they are unhappy, including managers. Owners need to be able to handle the stress and tension that comes along with customer employee relations, and do whatever it takes to keep everyone’s best interest in mind.
Salary and Benefits
The average salary of a franchise owner varies greatly according to the type of franchise they own, how quickly their business builds, and the location of the franchise. After several years of being in business, many franchise owners will make well into six figures a year. If a franchise owner owns several locations or has opened up several different franchises, salaries can be in the millions.
The benefit of being a business owner is that the owner is in charge of every step the company takes. They also have control over health insurance benefits, vacation opportunities and sick leave allowances for employees.
Where to Go for More Information
International Franchise Association
1501 K Street NW, Suite 350
Washington, DC 20005
Blue MauMau Franchise News Journal
Phone: (949) 829-1778
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