9/5/2023 0 Comments Hands off franchisesIt may take some digging to find them, but I have tried to short-circuit some of that work for you. Unfortunately, many franchisors don’t allow absentee or even semi-absentee ownership. If the franchisor doesn’t allow absentee ownership, that’s it. Absentee ownership is the prevailing business modelĭoes the Franchisor Prohibit Absentee Ownership?.Owner’s specialized skills or licenses are not essential to business.Franchise generates enough cash flow to hire managers and employees.Franchise agreement allows absentee ownership.How Do I Know If a Franchise Is Suitable For Absentee Ownership?Ī franchise is suitable for absentee ownership if the following are met: Note: For purposes of this article (and to make the reading experience better), when I refer to absentee ownership, I will be including semi-absentee ownership within that definition. You will want to oversee the performance of the management team and make sure your business is staying on track. In both cases, you should not be completely absent from the running of the business. You still outsource most of the operations, but you may check in and assist when necessary or personally oversee the operations from time to time. Semi-absentee ownership is similar to full absentee ownership, but you may have more of a role in the operations of the franchise. In some cases, you may not even live near the physical location of the franchise. You put in place a management team and employees to run the day-to-day operations instead. What Is Absentee Ownership of a Franchise?Ībsentee ownership of a franchise means you own the franchise without working there. You should seek the advice of a qualified professional before making any investment or other decisions relating to the topics covered by this article. It is not a recommendation to buy or invest, and it is not financial, investment, legal, or tax advice. The information contained in this post is for informational purposes only. If you click on a link and complete a transaction, I may make a small commission at no extra cost to you. If you want to skip ahead to the main discussion around the 9 franchises types, just click here. We’ll discuss each of these 9 franchise types in detail, but first, we’ll cover some introductory questions around absentee-owned franchises and 4 important questions you need to ask to determine if a franchise can be operated on an absentee basis. We’ll also include links to specific franchises that permit (or even encourage) this type of ownership. In this article, we are going to discuss 9 types of franchises (plus 2 bonus ideas) that can be operated on an absentee basis. The solution is absentee (or semi-absentee) ownership. Franchises can be terrific businesses, but many require you to be an owner-operator (i.e., they want you to actively work on premises running the operations).īut if you have a full-time job that you want to keep or just want to make some serious extra money on the side, working full-time at your franchise is not going to work. Intrigued by the idea of owning a franchise but don’t want the hassle of operating one?
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