If you’re interested in owning a franchise but don’t want to devote full-time hours to it, consider semi-passive franchise ownership. This franchise business model appeals to people in a variety of situations. Some want to keep their full time job while growing a business on the side for additional income or extra streams of revenue, 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 for recurring revenue streams. All of these scenarios are compatible with the semi-absentee ownership model.
Your Won’t Need to Put in 40 Hours a Week…Forever
Semi-passive ownership allows you (the owner) to potentially 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-passive ownership may require a full-time effort at the beginning, in order to get the business up and running, so it’s not a completely executive-absentee model where the franchisee can never be seen again by most of the location’s staff after their initial investment and signing the franchise agreement. The difference in semi-passive franchising is a middle ground where, once you’ve completed the ramp-up period and the business is established, you’ll often have the potential to put in 10-20 hours per week and not be involved in day-to-day operations as much. It’s all about making sure the type of franchise fits the business management style or lifestyle change you’re looking for.
Look Specifically for a Semi-Passive Ownership Opportunity
Here’s what not to do: try to convert a current franchise designed for full-time business ownership into a semi-passive model. That’s a recipe for disaster.
Rather, look for franchise opportunities specifically structured for semi-passive 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 common in the franchise industry. The possibilities are vast!
Make Sure You Know What You’re Getting Into
Be aware that semi-passive 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.
Leaving critical client and customer interactions to your team, in exchange for operational flexibility for yourself, is a management system that requires a lot more effort to set up, and might come as a shock to some initially excited about semi-absentee franchises.
Check the support systems for remote management the franchise offers, all ongoing training programs for both you and your staff, along with just how much you’re expected to be involved in your location.
Be sure there’s a real lifestyle alignment between you and the semi-passive franchise you’re interested in. Take all of those considerations into account when determining whether your skills and preferences align with a semi-passive role.
Remember To do Your Due Diligence
In conclusion, owning a franchise doesn’t necessarily require you to give up your corporate job. Franchises under the semi-absentee franchise ownership model are also referred to as semi-passive income franchises precisely because it’s a way to diversify your income and move away from being fully dependent on your paycheck; all thanks to semi-passive franchises.
Make sure that whatever franchising models you pursue fits well with your long-term goals, skills/talents, and time availability, whether it’s as a semi-absentee owner, fully executive/absentee owner, or as a completely dedicated general manager in a turnkey restaurant-lounge franchise. As long as you’re willing to put in the effort, do your research, and keep an open mind, you’ll be on the right path.