What is Semi-absentee Franchise Ownership?

Category: Entrepreneur

What is Semi-absentee Franchise Ownership?



When it comes to poker, there are a few different strategies of playing the game: going all-in, casual play, or observing from a distance. When it comes to owning a franchise, there are three levels of involvement in the business: hands-on, hands-off, and somewhere in the middle.

The names of these three common business models for owning and operating a franchise are owner-operator, in which the franchisee directly manages the business; executive-absentee, in which a manager runs the day-to-day operations while the franchisee works full-time behind the scenes growing the business; and semi-absentee, in which a manager runs the day-to-day while the franchisee checks in a few hours a week to oversee the operation.


The Owner-Operator

Most franchise businesses require owners to be an owner-operator. That’s because they know an owner-operator is fully invested. They have everything to gain if the business is successful – and everything to lose if it is not.

Corporate offices prefer owners to have boots on the ground and do what it takes for the franchise to take off. Owner-operators have a full-time, hands-on approach to owning their business. They’re the public face of the business and a familiar figure to regular customers.

Example of an owner-operator franchise: A gym where the owner-operator interacts with customers, trains staff, and manages the facility full time.


The Semi-Absentee

A semi-absentee franchise owner, also known as a semi-passive owner, is more of a part-time owner. They can keep a full-time job as an employee and work 10 to 15 hours per week overseeing operations at the franchise. Semi-absentee owners usually have a background in managing large teams and multiple locations, which makes this model of franchise ownership a great option for them.

Example of a semi-absentee franchise: A car wash owner with a site manager and front-line workers, whose owner only comes in a few times a week to review operations and sign paperwork.


The Executive-Model

This is the most hands-off type of franchise ownership. The owner hires managers to oversee all of the day-to-day running of the franchise. The owner makes final decisions and may step into an operational role when needed, but is not often present at the physical location of the business.

Example of an executive-absentee franchise: A hair salon in which stylists are overseen by a salon manager. The manager reports to the owner, who works on the big picture of growing the business.

Whatever your preferred style of ownership, there’s a franchise model out there for you. Your franchise consultant can help you find the best path forward for your business journey.

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