Does a Fully-Absentee franchise exist?

The answer is yes. But it isn't quite that simple. Here are 3 things to look for in a fully-absentee franchise.

Fully-Absentee by definition means the owner does nothing in terms of running the business. The Franchisee does not show up on the floor everyday, does not do the day-to-day tasks, does not answer the phone, does not hire or fire staff, does not drum up business, does not interact with customers or clients

unless they want to.

So, what does a Fully-Absentee Franchisee do as the owner?

A Fully-Absentee Franchisee is responsible for royalties. That means paying the franchisor the ownership fees based on gross earnings each month.

The Fully-Absentee Franchisee is responsible for paying staff. That means that the emplyees are paid out of the gross earnings.

The Fully-Absentee Franchisee is responsible for paying bills. That doesn't mean they are the ones writing the check per se, but the money does come out of the Franchisee's earnings.

Fully-Absentee franchises are rare. Very rare. They are rare because most Franchisors have learned from experience that when the owner is not on site, or checking in on a regular weekly or daily basis, things fall apart. That's the reason why some franchises offer semi-absentee opportunities at best. With a Semi-Absentee Franchise the tasks of the owner includes checking in with the manager on a regular basis, checking P/L statements, paying bills, hiring and firing (not always, but often this is the case), drumming up new business through networking and building relationships in the community. Basically, the fun stuff with a little of the hard stuff thrown in. If a Semi-Absentee Franchisee can find that perfect manager, they are set to go. The owner will be able to work less because they are able to trust that the business is being run well. Often, this is where the legacy business can be built, where parents hire their children as managers. The expectation being that the adult children learn the business and will continue on with it in the future when the parents are ready to retire.

A Fully-Absentee franchise is a great way for an individual to own, and for the franchise to get into communities without making it a corporate company.

1) When looking at a fully Absentee-Franchise model you want to see the Franchisor step up completely. They know how the business needs to be run, they know where the challenges may lie, they know what kind of staff needs to be hired and they know the kind and amout of marketing that needs to be done in the territory. So, when a Franchisor steps up to run a franchise completely, this is a good sign.

2) You want to see that the franchise has vetted each territory and assessed the best way to market and grow that territory for you. No Mom and Pop attitude about what you are about to undertake. You want the big guns of technology, marketing, SEO, everything that the other Franchisees have, only without your input.

3) You are also looking for a good return for your investment. You are being asked to treat the business as an investment, so it should be showing good investment results. Better than the stock market. And you want to see a steadily growing, stable increase in income coming from the operation of that business. Spotty results means that the system might not be ready for a fully absentee approach. So check the Disclosure Documents for signs that the franchise as a semi-absentee model is solid and consistent in earnings without creeping up in costs.

The reason a Fully-Absentee Franchise can exist is because the team of the franchise is working together, in unison, to make it successful. "Alone we can do so little." Together, as a team, there's so much more that can be accomplished. The ultimate goals is for the Franchisee to invest in a business that is already working, share in the profits, and help that buisness grow across the country. If you see the three strengths that are listed above in the Fully-Absentee franchise, you can be confident that the business is on good footing. You still have to keep an eye on things, though. Don't assume all is well all the time. A good owner looks after their investments, just like good investors check on the stock market. Adjustmnets may need to be made, but for the most part, the buisness should sail smoothly.

I'm happy to discuss with, and introduce you to fully-absentee, semi-absentee and owner-operator franchise models and discuss your goals for owning. Book your first call with me to start exploring.