Professional athletes find this type of franchise ownership to be beneficial for them because they can buy a franchise while continuing to play their sport or use it as a source of income during retirement. This type of ownership allows them to use the business as an investment and not a lifestyle change.
Semi-Absentee Franchise Ownership
A semi-absentee franchise owner can check in on their franchise business while having ample time to pursue other business opportunities. This is a hands-off kind of franchise ownership that allows you to make money while still working a day job or functioning as a multi-unit franchisee. Business areas suited for this type of ownership include ice cream franchises, tanning franchises, car wash franchises, and salon franchises.
Entrepreneurs who want to open a franchise using this type of ownership usually rely on the assistance of a manager. The manager will deal with the daily operations of the franchise store while the semi-absentee franchise owner keeps their day job and supports the business financially. If owning a business while still pursuing other opportunities sounds attractive to you, then this type of ownership could work.
Owner/Operator Franchise Ownership
Owner/operator franchisees are heavily involved in the daily operations of the business. These franchisees want full control over their investment and consider running the franchise a career. Typically, owners/operators are single unit franchisees.
This type of ownership will help the franchise owner learn the ropes of the industry, especially if they don't have prior franchise business experience. While being the operator of a franchise store or other business takes up a lot of your time, this type of franchise ownership is great for those who are looking for a career change.
Which of These Franchise Types is Best for Me?
Before choosing a franchise, seek the advice of a Franchise Consultant who will offer guidance to determine if franchising is right for you and what kind of franchise ownership best suits your skills, interests, budget, and lifestyle.
These professionals connect franchisors with entrepreneurs who want to open a franchise. The Franchise Consultant will meet with a prospective franchise owner and discuss their skills, financial situation, goals, and more. The Franchise Consultant only gets a commission from the franchisor when entrepreneurs buy a franchise. At no cost to you, they will explain to you how to buy a franchise and help you narrow down your list of the best franchising opportunities using their deep knowledge of how to become a franchise owner.
Different Types of Franchise Ownership
There are different types of franchise ownership depending on the number of franchises that you own and the amount of time you put in. As the name states, single-unit franchise owners only own one location, and multi-unit franchisees own several. Area developers are similar to multi-unit franchisees but at a larger scale.
Being an owner/operator means that you're fully invested in the business, while semi-absentee and absentee ownership allow you to pursue other ventures and have more flexibility. Master franchisees represent the franchisor and receive fees from franchisees in the territory. To make an informed decision about which franchise is best for you, consider speaking with a Franchise Consultant.
How to Become a Business Owner
As you learn how to become a business owner and consider if franchise ownership is right for you, it can be overwhelming and stressful. But you’re not alone! Seek advice from your family, Franchise Consultants, franchisors, and more to make the experience as seamless and painless as possible. This could be the best decision you’ve ever made!