Daily Responsibilities of a Franchise Owner-Operator

Lately, a lot of my candidates have been asking about executive franchise ownership. That’s why I recently posted about what makes a true executive owner and the essential skills an executive owner needs. However, I’ve also met with candidates who want to understand the difference between executive ownership and being a franchise owner-operator.

I’ve explained the difference in broad terms before. I thought it would be helpful, though, to go into more detail on the subject. So this week is the first in a two-part series. Today, I’ll break down the daily responsibilities of a franchise owner-operator. I’ll do the same for executive owners in the next installment.

Operations Management

A franchise owner-operator usually works full-time in the business. During a franchise’s early days, they may even work more than 40 hours a week to ensure a successful launch. One of their key responsibilities is operations management: making sure that everything runs smoothly on a day-to-day basis. This includes dealing with any crises that pop up during the day, whether related to equipment, customer needs, or personnel issues.

Marketing

At minimum, an owner-operator approves marketing strategy and tactics and sees that they’re carried out in a timely fashion. They track metrics (results) and suggest or implement changes if a particular tactic isn’t working. Depending on their background, they may do some or all of the marketing themselves, including managing the business’s social media, creating flyers or ads, setting up and maintaining the website, and arranging media coverage.

Sales

Generally speaking, an owner-operator also handles sales management. This means setting revenue goals and tracking sales to ensure they’re not falling behind. It may also mean training employees in sales tactics, figuring out which ones don’t work, and suggesting or implementing changes in the sales process. Particularly in a service-based business, a franchise owner-operator may also function as the business’s lead salesperson. They may go on sales calls, create quotes, and network with potential sales partners.

Financial and Vendor Management

An owner-operator might hire an accountant for tax preparation or compliance purposes, but they generally handle the day-to-day business finances themselves. Owner-operators usually check revenue tallies each day, make daily bank deposits and withdrawals, keep the books, and manage the franchise’s point-of-sale and/or ecommerce system. They also manage payroll and choose, manage, and pay vendors and contractors. These might include suppliers, builders, HVAC professionals, equipment servicers, and more.

Staffing and HR

Owner-operators are responsible for hiring, firing, and all the management that takes place in between. When a franchisee works full-time in the business, this does usually reduce staffing needs. In fact, in the very early days, an owner-operator may be the business’s only staff member, or may work with just one other person.

When the business’s finances allow, however, an owner-operator should usually hire at least one manager. This person can cover business hours the franchisee doesn’t work (such as nights or weekends, if the business has extended hours) or fill gaps in the franchisee’s skillset. For instance, a franchisee with a strong sales background will likely benefit from hiring an operations manager. As an owner-operator, the franchisee will still need to be involved in all aspects of the business, but they can reduce their responsibilities in the manager’s area.

Some home-based franchises are designed for just one employee, the franchisee. But most will have 2-6 additional employees once fully staffed. A brick-and-mortar franchise that follows ordinary business hours will be the same. If it keeps extended hours (as with most retail or food-service franchises, for instance), the owner-operator may need to hire a second or even third shift of employees.

Want to learn more about what’s involved in being a franchise owner-operator? Let’s book time for a 15-minute chat! I can help you determine whether this kind of arrangement is best for your personal, professional, and financial goals. And my services are always free!