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Support Staff to Franchisees Ratio Expand / Collapse
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Posted 4/3/2008 5:56:45 PM


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We are in the middle of a revamping of our Training and Supprt Departments and are wondering what is the norm of support staff per franchisees?

Jamie R. Nelson

Franchise Performance Director
The Screenmobile Corporation
jamie@screenmobile.com
(760) 343-3800 Ext 113
(760) 343-7543 FAX
Post #396
Posted 4/7/2008 4:26:08 PM
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Jamie -

Sadly, there is not a magic formula to the support/training staff to franchisee ratio.  Different businesses have different business models with varying manpower needs.  I researched this topic a few months ago and the most promising resource I found was information from an Australian firm...  Franchise Careers who published a National Franchise Role Survey several years ago.  You may want to google them - I've posted some summary info I gathered from that source below for your use.  One thing I would recommend you and your business be thoughful about is your financial model for both the unit and the franchisor level.  Generally, overhead costs to support franchisees needs to correlate to a sustainable profit model for the franchisor and franchisee given royalty rates, unit and corporate overhead, and unit and system wide sales.  I find that most franchisors set there royalty rates, support rates based on "benchmarking" the competition rather than on what REALLY works for there model.   

FACTORS FOR CONSIDERATION:

  • # of units per Franchisee
  • Generalist field managers vs. specialists
  • Franchisor funds available to invest in support
  • The number of services provided (minimal vs. extended)
  • Geographical spread of stores
  • Frequency and duration of visits

Number of sites a field manager is responsible for: 
Percentage of Franchisors using this ratio:
10 to 15 sites
14%
16 to 20 sites
23%
21 to 26 sites
14%
26 or more sites
49%


Jamie Griffin, CFE

Actualize Services | www.actualizeservices.com

Post #398
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