The Basic Business Structure of a Franchise Business

Are you an entrepreneur looking to start a new business venture? If so, you may have considered purchasing a franchise business. But in order to find success, you’ll need to know what to expect. A fundamental aspect of preparing for franchise ownership is studying up on the way franchise businesses are structured, so you’ll know how to access the helpful resources being part of a franchise makes available to you.

To demonstrate a typical franchise structure, we’ll take a closer look at the popular hamburger franchise Checkers & Rally’s. This restaurant serves as a good example of how restaurant franchises are generally organized.

General Franchise Structure

In general, there are two ways in which a business might be structured if it is to be labeled a franchise. Product name franchising grants the franchisee permission to use a product’s name and label in marketing. This structure is often seen in automotive industries, gas stations, and soda and beer distributors. What’s important in this system is that the franchised item is the actual product being sold to the end user.

A business format franchise works differently. Although the franchisee is being granted permission to use a trademarked name and logo, the real franchised item isn’t the product being sold but the business model. This is why, when you walk into two different locations of a restaurant franchise, they always have certain things in common. Those commonalities are part of the franchise rules.

This second type of franchise structure is the type followed by most restaurants, including Checkers & Rally’s. Let’s take a closer look.

Restaurant Franchise Structure

At the head of the ship that is the company at large is an operations manager. The operations manager’s job is to devise the procedures by which the individual franchise locations should be run. These could be as central to the mission of the business as setting the menu. The operations manager also makes decisions about the visual aspect of the restaurant, like the checkerboard pattern featured in all Checkers & Rally’s locations.

The operations manager is also in charge of hiring and talent management, so he or she must be skilled in finding the right person for the job.

Moving down the chain, district managers are in charge of small subsets of the franchise—several restaurants in a given region, but not the franchise as a whole. Their role is to make sure things are running smoothly at the locations under their purview. Franchise owners are the individuals who have invested in the money and are actually the individual owners of each given location, although they are still bound to follow the rules of the franchise.

Finally, the owner of each franchise will hire several individuals to help him or her run the business. Who is included depends on the needs of the business, but there are likely to be a few restaurant managers, some cashiers, some cooks, and cleaning staff.

As you can see, franchise ownership offers plenty of room for growth. If you think franchise ownership is the opportunity you’ve been looking for, Checkers & Rally’s is looking for quality members to join their team!

Steve Max
Steve Maxhttp://www.webzando.com/
A long time digital entrepreneur, Steve has been in digital marketing since 2010 and over the past decade he has built & executed innovative online strategies for leading companies in car insurance, retail shopping, professional sports and the movie & television industry.


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