The Many Ownership Models of Franchising

As we’ve noted in this space many times before, franchising offers multiple advantages to entrepreneurs looking to own a business of their own. But it’s not just the proven business models that provide franchisees with a literal roadmap to success. Nor is it just about the comprehensive training and ongoing support that continually remind franchise owners that the brand has their back. Rather, it’s all of these things – and more – that make franchising an advisable option for becoming your own boss.

But were you also aware that there are several different ownership models in franchising? For an industry that’s anything but “one size fits all,” it’s not exactly surprising to know that franchise ownership candidates can choose from three distinct operating scenarios. These include Owner/Operator, Executive (or Absentee), and Semi-Absentee. In this week’s Franchise FastLane blog, we’re going to look at all three options for a closer look at how you might run your business from among our 20+ best-in-class franchise concepts.

Executive/Absentee

In this scenario, an entrepreneur purchases a franchise, but is content to hire out all of the positions that take care of the day-to-day aspects of running the business. Owners who decide on this route are most often from the investor class and are using the franchise as a means of diversifying their personal business empire. It’s not the most common form of ownership model in the franchising industry, however this option does generate interest among enterprise-level entrepreneurs who like to balance out the business opportunities they own and manage.

Semi-Absentee

In this scenario, the franchise owner strikes a balance between being fully hands-on and fully hands-off. In the semi-absentee business model, franchise owners are still involved with the business – typically between 15-20 hours per week. But the bulk of the day-to-day duties of running the business are left to a qualified executive. The semi-absentee model works well, provided you hire an exceptional employee to oversee the operation. In the franchising industry, this aspect is often referred to as “managing the manager.” Many new franchise owners turn to this option as a means to dip their toe in entrepreneurial waters. It works because they can still keep their day job while the business gets up and running. More often than not, semi-absentee ownership is a proving ground. Once things are going well on the operations side of the business, owners can eventually transition to full-time oversight – or even expansion into multi-unit ownership.

Owner/Operator

This is the most common of all three franchise ownership models. This scenario places the franchisee front and center, as the face of the operation who oversees every aspect of the day-to-day duties. Owner/Operator franchisees typically spend as much time at the helm of the operation as they would any other 40-hour workweek job. Sometimes more. The owner might still have staff – even a general manager – because it’s important for them to be in charge of planning, networking, new business, and client acquisition duties – the lifeblood of any thriving small business.

With the new knowledge of all three different franchise ownership models, it’s important to determine which option best fits your own entrepreneurial plans. And at Franchise FastLane, we can help you discover the most suitable choice for your situation. We’ll look at your preferences for owning one of the best-in-class brands in our inventory, your work-life balance requirements, and your propensity for delegating authority. The majority of the Franchise FastLane executive staff are franchise owners themselves and can offer plenty of meaningful advice regarding the best ownership scenario.

 If you’re ready to get started, that’s makes two of us. Call or connect with a Franchise FastLane representative today!

Ready to Explore Franchise Ownership? Let’s Connect!

If you’d like to explore what’s possible through franchise ownership, we invite you to reach out to Franchise FastLane to learn about the 20+ best-in-class brands in our portfolio of opportunities. Our staff has built and cultivated a reputation for helping franchise ownership candidates discover a path that can lead to a whole new way of life. Once you enlist our assistance, we can help you turn your business ownership dreams into reality.