What Makes Strong Absentee Owner Franchises?
Opening your own business is an exciting venture, whether it’s your first time or you’ve been an entrepreneur for years. When finding the right franchise opportunity, you should also consider how involved you’d like to be in the day-to-day operations. If you’ve run a business before, you may know splitting your time between multiple locations can be a lot to manage.
The best absentee owner franchises are those that align with your lifestyle, personal goals, and desired availability. Not all franchises offer an absentee owner model. When you’re researching your interests and viable business options, consider the ownership model that best aligns with your leadership style.
Absentee owner franchises are mostly beneficial for those who have had experience in owning businesses, are comfortable with a passive role, and can develop a strong management team.
Understanding Franchise Ownership Models
How you run your business is called your franchise ownership model. The three franchise ownership models most commonly available are absentee franchise, semi-absentee franchise, and owner-operator franchise. Explore which model is best for your business.
What Is An Absentee Franchise?
The absentee franchise owner often has the most freedom of all the models. In this ownership role, you will be much more involved in setting up your business for success before opening day. In addition to choosing the best location and receiving training with your franchisor, you will also hire and develop a strong management team.
Once your doors are open, you can delegate everyday tasks to your management team. This team is expected to run the business and handle minor problems, like staff conflicts or customer concerns, on your behalf.
While being an absentee franchise owner seems like a dream come true for some business owners, this model isn’t completely hands off. You should always be aware of what’s going on. Your primary role will be directing the business in terms of goals and deliverables. Regular communication with your managers is key to ensuring that these goals are achieved.
What Is An Owner-Operator Franchise?
In an owner-operator franchise, you actively manage the daily operations, often on site. Many franchise owners still prefer this traditional role. You may enjoy being shoulder-to-shoulder with your staff and hands-on with your customers. This model is ideal if you are motivated by the sense of accomplishment that comes with being more involved daily. First-time franchisees benefit the most from an owner-operator franchise.
Most of the time, many brands insist that franchisees begin with an owner-operator model for a set time before they qualify for other ownership models. The benefit of this prerequisite is that, as a new franchisee, you can experience more support and better understanding of what it takes to run the business on a daily basis. For hopeful absentee franchise owners, being an owner-operator can help you determine what to look for in your management team.
What Is A Semi-Absentee Franchise?
Semi-absentee franchise owners are partially involved with a manager handling some tasks. This may look like working part-time as an owner while giving your manager more authority each week, so you can focus on big-picture objectives. You may take advantage of this ownership model if you need to split your time between another business or enjoy more of your personal life.
3 Benefits of Absentee Owner Franchises
If you're thinking about owning a franchise but don't want to be involved in the day to day, an absentee owner franchise might be perfect for you. This model may be ideal if you have years of franchising experience or are a multi-unit owner. Explore three benefits of absentee ownership to decide if it's the right choice for you.
1. Flexible Hours
If you want more flexibility in your schedule, an absentee ownership model might be the best choice for you. This model is perfect for owners who are:
- Running multiple businesses at the same time
- Looking for a better work-life balance
- Pursuing other interests or hobbies
- Maintaining other careers
2. Passive Income
Starting your own business usually means it becomes your main focus. However, with the best absentee ownership franchises, you can earn income without being involved in daily operations. This model is ideal for experienced franchisees or multi-unit franchise owners who want to generate passive income.
3. Expand Your Portfolio
For experienced business owners, absentee ownership is a great way to manage a large portfolio. You can rely on trusted managers at each location while gaining more experience as a franchisee. This allows you to expand your business interests without needing to be hands-on with every detail.
Ideal Businesses for Absentee Ownership
Before becoming an absentee owner, it’s crucial to know which businesses are better structured to run smoothly without you being there every day.
The best absentee owner franchises often include a standardized franchise process, consistent customer demand, and clear operational guidelines. This makes it easier for you to step back from daily operations while still ensuring the business runs smoothly and efficiently.
1. Retail Stores
Retail or specialty stores are great for absentee ownership. These businesses often have straightforward operations and can be managed by a reliable team. With a clear set of guidelines and procedures, your team can handle daily tasks, inventory management, and customer service.
2. Service-Based Businesses
Service-based businesses also make good absentee owner franchises. These businesses have steady, predictable routines that a well-trained manager can oversee. Regular maintenance and customer interactions can be handled by the staff, leaving you free to focus on business strategy.
3. Restaurant Franchises
Not all restaurants are suitable for absentee ownership, but some fast-food or quick-service franchises often work well. These types of restaurants often have established systems and procedures that make it easier for a manager to run day-to-day operations without constant oversight from the owner.
8 Questions to Decide the Best Franchise Ownership Model for You
These eight questions are important to consider when deciding on the right ownership model for you. The best absentee owner franchises for you will align with your goals based on your answers.
- What are your long-term career and lifestyle goals?
- How much time can you realistically dedicate?
- Do you prefer hands-on management or strategic oversight?
- How much control do you want over daily operations?
- What are your income expectations and investment capacity?
- Do you have the resources to hire and trust a management team?
- Does the franchise you’re interested in offer absentee ownership?
- What is the process for absentee ownership with my prospective franchisor?