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Can Franchising Solve Your Labor Shortage Issues?

One of the biggest obstacles business owners are facing is maintaining and hiring qualified employees. But, can franchising help solve your employment issues?

Many times, we’ll get a call from a successful business owner, whether in the service, retail, or restaurant industry, and are on a strong growth trajectory. And, one of their biggest obstacles for continued growth is hiring employees.

“I’ve thought about franchising, can it help solve my labor shortage problem?” is a common question we get.

First, an advantage to franchising is scalability and economies of scale. You’re going to recruit franchisees who are going to use their time, managerial effort, and capital to establish a new location or service territory and expand the reach of your brand. Then, those franchisees will recruit employees.

So, yes. From a macro perspective, franchising can help solve your labor shortage issues. But, then your franchisees are going to have issues hiring employees. It doesn’t completely solve this problem.

However, if you’re only looking to solve labor issues and not put time, effort, and money into building your franchise organization and helping your franchisees grow, franchising is probably not for you.

For more information about franchising, read The Ultimate Guide to Franchising Your Business.