Skip to content

Our Blog

FranChoice news, updates, and industry information

The scoop on semi-absentee franchise ownership

By FranChoice Blog | Oct 23, 2019

semi-absentee franchise ownership

If you’re interested in owning a franchise but don’t want to devote full-time hours to it, consider semi-absentee franchise ownership. This model appeals to people in a variety of situations. Some want to keep their day job while growing a business on the side, while others are looking toward retirement and want to build an asset they can pass to their children. Some people want to grow a business as part of a portfolio of businesses. All of these scenarios are compatible with the semi-absentee ownership model.

You won’t need to put in 40 hours a week

Semi-absentee ownership enables you (the owner) to successfully operate the business while maintaining another career or obligation. It contrasts with a business that requires your full-time effort and constant presence. Note, however, that semi-absentee ownership may require a full-time effort at the beginning, in order to get the business up and running. The difference is that once you’ve completed the ramp-up period and the business is established, you’ll only need to put in 10-20 hours per week.

Look specifically for a semi-absentee ownership opportunity

Here’s what not to do: try to convert a business designed for full-time ownership into a semi-absentee model. That’s a recipe for disaster. Rather, look for franchise opportunities specifically structured for semi-absentee ownership. Brands that embrace this model span many industries and formats. They include brick and mortar stores (such as hair salons, massage therapy studios, and more), mobile concepts, consulting and advisory services, and many other businesses. The possibilities are vast!

Make sure you know what you’re getting into

Be aware that semi-absentee ownership typically involves a longer development or ramp-up period compared to a full-time endeavor. Another thing to consider is that with this model, you’re likely to be managing people you hire to interface with consumers and clients. Be sure to take that into account when determining whether your skills and preferences align with a semi-absentee role.

Remember to do your due diligence

In conclusion, owning a franchise doesn’t require you to give up your day job. You can begin diversifying your income and move away from being fully dependent on your paycheck by pursuing semi-absentee ownership. Make sure that whatever model you pursue fits well with your long-term goals, skills/talents, and time availability. As long as you’re willing to put in the effort, do your research, and keep an open mind, you’ll be on a good path.

Read More

Is Multi-Unit Franchising for You?

By FranChoice Blog | Oct 9, 2019

is-multi-unit-franchising-for-you

Whether you already own a franchise or you’re thinking about buying one, you may be wondering: is multi-unit franchising for you? Buying multiple units requires a significant investment, so it’s a good idea to first take a close look at this model.

What is multi-unit franchising?

Multi-unit franchising has increased in popularity over the past few decades. With this ownership model, a single franchisee owns and operates more than one unit, traditionally within the same general region. Frequently the owner buys multiple units and begins by opening a single unit, before eventually opening the additional locations. Multi-unit ownership offers an excellent opportunity for growth and wealth creation.

Your role as an owner will differ according to whether you own a single franchise unit or multiple units. Owning a single location often means you’re on site at one store every day and essentially serve as the manager. A multi-unit owner, while still involved full-time, focuses instead on scaling the business and “bigger picture” strategy and operations. As a multi-unit owner, you’re more likely to hire a manager to run the day-to-day functions.

Advantage: Stability

With respect to growth and performance, your chance of success increases with multi-unit ownership. Your overall results will be more stable because they won’t rely solely on the performance of one store. For example, a downturn in one location could be balanced out by increased business at your other sites.

Advantage: Economies of Scale

Multi-unit ownership enables you to lower your cost per unit because fixed costs are shared over multiple locations. These economies of scale can apply to expenses such as purchasing inventory, marketing, staffing, and training, making the business more profitable and efficient over time. This is especially true in low-margin industries.

Advantage: Potential for Higher ROI

Given cost savings, reduced expenses, benefits of economies of scale, and a higher probability of success, multi-unit franchise ownership can generate a higher Return on Investment (ROI).

Advantage: Increased Influence

Typically, your influence within the franchise system will grow when you own multiple units. The franchisor is more likely to take notice of your feedback and needs.

Thinking about multi-unit ownership?

Keep in mind that a bigger initial investment means more risk early on, although it will eventually be spread out among multiple locations. And while multi-unit ownership can ultimately be more profitable, it can involve a longer ramp-up period. There are different ways to go about multi-unit ownership.  If you commit to opening multiple units right out of the gate, be sure to carefully consider the financial investment and time commitment required.

Both single and multi-unit franchising offer opportunities, challenges, and rewards to those willing to commit the time and effort to be successful. Is multi-unit franchising for you? Deciding which path suits you best ultimately comes down to assessing your personal goals and capabilities, finding the right franchise, and making an informed decision. To find your best match, contact a FranChoice consultant to assist you through the process.

Read More