June 12, 2014

6 Key Considerations Before Choosing a Staffing Firm Franchise

Hand choosing a hanging key amongst other onesIn our previous article, “Should I Join a Hiring Franchise or Start my Own Hiring Firm? we discussed whether an aspiring hiring agency owner should go it alone or buy into a successful, pre-existing hiring franchise. In this follow-up article we look at the top things to consider if you have made the decision to buy into a staffing firm franchise and are now assessing the options available to you.

1. Financial capabilities and expectations

Before looking into franchises, it’s vital that you know not just how much money you can invest but also how much profit/earnings you need or would like to make. There are plenty of staffing franchises out there and this will quickly help you to exclude unsuitable ones and make your long-list.

2. Professional capabilities and required support

Be absolutely clear on your strengths and weaknesses in these three specific areas: industry knowledge, management and leadership skills and sales skills. You’ll need to excel in all three areas for your franchisor staff firm to work; if you lack any of these skills you may need to gain or supplement them in some way.

3. Territory

Your franchise will usually be allowed to operate within a designated territory. You may need to relocate to find a territory that is available for you to open up shop. If you are lucky, your hometown will be both available and prime territory for your new business.

4. First contact with franchisors

Assess your first contact experience with franchisors. Are their staff knowledgeable and customer focused? Is the documentation of good quality and up to date? Do they answer all your questions and address your concerns satisfactorily? How they treat you in these interactions could indicate how they may treat you as a franchisee.

5. Consider the FDD

If you look on entrepreneur.com you’ll find the cost and fees associated with each staffing franchise, e.g. how much you need to invest and what are the royalty fees. You’ll also find an indication of the training and marketing support that is offered. This is just an indicator and not all staffing franchises are listed here; so, if you are serious about a particular franchise you’ll need to ask the franchisee to provide a Franchise Disclosure Agreement (a requirement in the U.S.). This way you can find out exactly what the fees are and what levels of training and sales support are provided. Crucially, some franchisors will also include earnings claims in the FDD, which will help you plan your potential earnings.

6. Speak to other franchisees

Speak with other franchisees to get a real appreciation of what it’s like to run the franchise. They may give you an idea of earnings potentials versus effort and what the general experience is like. Consult sites like FranchiseBusinessReview and entrepreneur.com, (which has a specialist section on franchises), to get more information about the quality of each franchise.

Having considered the fees and earnings of each staffing firm franchisee; available territories; training and marketing support and general effectiveness of the franchise model against your own needs and expectations, you can assess each franchise to see which is the best fit. Thus giving you the basis to make an informed decision about the best staffing firm franchise for you.

Note: if you are interested in learning more about franchising, please view our recruitment franchise description page and request more information. Recruiter.com does not offer a franchise model itself. As with any major business decision, please consider all available options, consult with your attorney and financial advisors. This article, previously published, should be viewed for general information purposes only.


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Kazim Ladimeji is a Chartered Member of the Chartered Institute of Personnel and Development, and has been a practicing HR professional for 14 years. Kazim is the Director of The Career Cafe: a resource for start-ups, small business and job seekers.