Business Franchise Australia


Understanding the Role of Human Resource Management for Franchises

Flying solo as a business owner can be as daunting as it is thrilling. For budding entrepreneurs, franchises offer a unique opportunity for business ownership with the support of an established brand. From fast-food to service outlets, ambitious proprietors can build their business on the framework and support a larger company provides. 

However, a business is only as successful as the team behind it; franchises are no exception. Human Resources therefore plays a quiet yet crucial role in driving business prosperity. 

In this blogpost, we will explore the pivotal role that Human Resources plays in the franchise business structure. For aspiring HR professionals, this is a great introduction to one of many business models you may find yourself working in. Let’s dive in! 



The Essence of Franchises 

Firstly, let’s define the franchise business model. This is essential to understanding what Human Resources Management (HRM) can offer in this context. 

At their core, franchises centre on the relationship between a parent company (franchisors) and the individual business owners (franchisees). 

Franchisors supply resources including:

  • Brand name 
  • Business model
  • Operational guidelines to set up a new franchise
  • Ongoing support once the business is up and running 

On the other hand, franchisees focus on:

  • Investing capital
  • Managing daily business operations
  • Driving local growth


How Does Human Resources Management Fit In? 

Traditional business structures include a centralised, often in-house HR department that takes care of the company’s staffing needs. This includes recruitment, employee training and development, talent management, compensation and benefits, safety and compliance and more. 

On the other hand, franchises are decentralised with each franchise unit responsible for their own HR operations. This presents unique opportunities and challenges for franchisees, who may not have the expertise to handle this aspect of business. 

As an up-and-coming HR professional, this is where you will come in. By applying your specialised knowledge to address a franchise’s specific needs, you can be a pillar of indispensable business support.

To build a promising future in HR, you can learn more about an online Human Resources Masters with UNSW.


Bringing in the Right Talent

Employee recruitment and selection is a key component of business success, including franchises. HR professionals are tasked with matching the right talent to each franchise unit. They must consider what individuals are the best fit for both the overarching parent company and the particular franchise unit in question. 

Quality recruitment helps to uphold brand standards. Additionally, it helps franchises to satisfy target markets and increase customer retention. 

HR can help franchises recruit by:

  • Developing recruitment strategies
  • Conducting interviews
  • Evaluating candidates 
  • Advising on and navigating employment laws 


Nurturing Growth through Training

HRM not only takes care of recruitment, but nurtures employees’ career development through training and upskilling. This directly influences a franchise’s bottom line by strengthening the quality of products and services offered by the team.

HR professionals make sure that workers are matched up to roles that best suit their strengths and career goals. They provide the necessary education that individuals need to do their job, and make opportunities to upskill throughout their role.

This may include training programs, mentorship, career consultations and more. HRM also makes sure that employee education is up-to-date with the latest trends and business standards, both in the industry and across Australia. 



Fostering Performance Excellence

Maintaining consistent performance standards can pose a challenge for franchises, as they operate in a decentralised manner. 

HRM helps address this through performance management practices. Goal setting, regular feedback sessions and performance reviews are just some of the methods in a HR professional’s toolbox. 

This is essential to develop, clarify and align a franchise with their desired business goals. HRM provides a valuable framework for course correction where necessary. In doing so, this steers franchisees towards success – one KPI at a time! 


Nurturing Harmonious Workplaces

Good teamwork and a harmonious work environment lies at the heart of a successful and long-lasting franchise. For franchises, HRM acts as the primary mediator. They ensure that any conflict that arises is resolved and that grievances are addressed fairly. 

HRM helps foster a positive work culture and ensures that fairness, equity and healthy employee relations are upheld. Happy staff mean happy customers, and HRM paves the way for a cohesive and motivated team. 


Staying on the Right Side of the Law

Franchises have some unique qualities to consider in terms of laws and regulations. This is where HRM steps in to help franchise owners know their rights and responsibilities in Australia. From guidance and advice on fair work practices to workplace safety, HRM ensures that franchises are complying with legal requirements. 

HR professionals also bring their A-game by staying updated with legislative changes and implementing robust policies. This helps to protect both franchisor and franchisee while minimising potential legal risks. 



At its core, Human Resource Management is a franchise’s secret weapon for success. It supports franchises by recruiting talent, nurturing professional growth and performance, mediating employee relations and providing valuable legal advice. These directly impact a business’ revenue, making HRM indispensable for creating a successful enterprise. 

For aspiring HR professionals, understanding the pivotal role of human resources for franchises is incredibly beneficial. Round out your scope of expertise and enjoy the journey to becoming a HR pro!