Management Franchises

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Management Franchises

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Management Franchises UK – White Collar Franchises For Sale UK

management-franchises2Contrary to the name a management franchises is not a franchise that offers management advice. It is any type of franchise that requires management experience in order to successfully run the business. In this sense it means it is one of the broadest categories of franchises out there, it is also sometimes referred to as white collar franchises.

In this sense most franchises are management franchises or white collar franchises. They require the management experience, and hands on operational supervision of the business. This would be as opposed to passive franchises. A passive franchise is a franchise where the franchisee can hire a manager and be a passive investor. Many franchisors do not permit the later structure because they want their franchisees to be run by active owner operators. There are a number of reasons for this, but it is primarily because on the whole owner operators do a better job of running the business.

Skills Necessary to Succeed in Management Franchises

In order to succeed in a management franchises the franchisee must have a number of skills that will allow them to successfully operate the business:

  • People and HR Skills – It goes without saying a manager must be able to deal with people and their human resources needs. This includes providing training mentorship, and ability to progress within the organisation.
  • Business Skills – A manager must also be ready to take on the administrative functions related to the business. This includes the payroll, taxation reporting, accounting, and preparation of documents for audit at the year-end.
  • Experience – The most important skill for a management franchises to have is management experience. This management experience will allow the manager to draw on their own history, skills, and intuition to make the right decisions and lead their team towards achieving their business objectives.

Types of Management Franchises

Most franchisors would categorise their franchises as management franchises. Most require the franchisee to have a physical employment presence within their business, and requires they have management experience when they buy the business.

  • Restaurant Industry – The restaurant industry is famous for enlisting management franchises. This is because restaurants are incredibly complex and difficult to run well in the presence of absentee management. Having the owner on site also allows them to ensure the quality control processes of the business are maximised, and the customers are well served. All of the largest restaurant franchises in the world insist on their owners having management experience, and an on site presence.
  • Cosmetic and Beauty – Similar to the restaurant industry the cosmetic and beauty industry succeeds or fails based on the publics perception of its brand. In the case of cosmetics and hairdressing, a bad haircut at one franchisee’s location reflects badly on everyone else. This is why businesses in this sector have to have their owner/operators present on site.
  • Real Estate – A broker franchising a real estate industry brand has to have experience in management for multiple reasons. First there are regulatory requirements governing real estate brokers and estate agents. They have to be licensed by a government body in order to conduct business, this means they have to go through an industry recognised training course. The second reason is it is pretty hard to motivate and train a team of real estate agents without a physical presence. Because agents are paid exclusively on commission they have got to sell if they are going to earn any income.
  • Service Franchises – Generally any franchise that offers services to a business or the public will require its management to be present on site. They will also typically have to have experience prior to starting the franchise to be able to manage the business. This experience has to be specific to the industry that the franchisor operates in. Similar to the restaurant and cosmetic franchise industries this is driven by the need for customer service quality.

Management Franchises – Master Franchises

management-franchises1A management franchises master franchise is a little bit different. Master franchises generally entitle the business to open a whole host of locations within a given geography, and actually sell franchises to other people to operate subsections of that geography. This is particularly common when a franchisor enters a foreign market, to sell off entire regions to well-funded managers who can properly execute on the expansion of the business into the new market.

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