Semi-absentee franchise ownership is a hybrid model with income security
Semi-absentee franchise ownership has become a popular and often preferred ownership option. Its advantages include providing diversification and stability for franchise owners who have steady and often high-paying day jobs. Semi-absentee franchise owners oversee the overall operations with limited yet strategic involvement while trusting their managers to run day-to-day operations
Semi-absentee franchise ownership blends aspects of the other two primary franchise ownership models: owner/operator and executive/absentee. Owner/operator is preferred if you are looking for an immediate career change. Under this model, you are responsible for the day-to-day operations, and it’s a good choice if you want to maintain total control over your investment and become immersed in the business.
Executive/absentee suits people looking solely for an investment opportunity. The time commitment is minimal because you hire out all functions to operate the unit, and you have little to no involvement in the day-to-day operation.
Semi-absentee ownership is ideal if you want an additional income stream to diversify your current income. The time commitment is typically low, requiring approximately 10 to 15 hours per week, so it’s relatively easy to keep the security of steady income from your day job
Managers will take care of business functions on a daily basis while you will focus on leading the business strategy and directing the managers
As you start to explore franchises that can be managed on a semi-absentee basis, you will find a variety of alternatives from very different industries. Some key examples are frozen yogurt and ice cream shops, hair salons and other beauty-service businesses, tanning salons, vending machines, car washes, laundromats, fitness concepts, and cleaning services.
As diverse as these businesses are, they do have common operating characteristics, with the primary ones being:
- Managers run the operation day-to-day.
- Semi-absentee ownership franchises are typically retail or service-based.
- They’re usually set up to become multi-location operations over time.
- Owners don’t need prior industry experience for success.
When deciding whether semi-absentee franchise ownership is the right investment for you, examine your needs and goals as well as think about what you expect of your investment. Do you want to become a franchise empire builder? Do you want to build multiple concepts? How much capital do you have to invest?
Semi-absentee franchise ownership and its benefits often represent the sweet spot of owning a franchise for investors who are interested in maintaining their current jobs and income while adding another income stream.
– Jerry Rieder, CFC
Jerry Rieder, CFC, has been a franchise consultant since 2012. He became part of the FranServe Training and Development Team in 2013 and has helped a large number of consultants become successful. His compassion and desire to see others achieve drives him to share his techniques and best practices with new and experienced consultants alike. He serves as a trainer, a mentor, and also as a facilitator for FranServe’s Power Teams. His prior 25+ years of management experience with Fortune 500 Companies provides the foundation for aiding others to achieve their goals. Contact Jerry at jerry@franserve.com