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Franchise Business Models

Owner/Operator Model

This franchise business model is full-time. It allows franchisees to have total control over their schedule and income. This franchise business model can usually start without employees and typically provides a product or service either to local homeowners and/or business owners. Their investment is usually lower due to not needing a fixed location and most of these businesses can be run out of a home office. As the business grows employees can be added as needed.

Executive Model

This franchise business model attracts franchisees that are strong in business and people management. Executive model franchisees want to be active in the franchise business on a full-time basis and tend to be interested in scalability. However, they do not want to be the “worker bee,” but rather the person who leads and manages employees and ensures customer satisfaction.

Semi-Absentee Model

This franchise business model allows franchisees to keep their job, while they build wealth and equity in a business that can be run by a manager. Sometimes they are executives who wish to retain their careers (for a limited number of years) until they find their “next career.” Sometimes they are executives who want to transition to the franchise business full-time when the it replaces their income. As the owner, they are involved in overseeing the franchise business approximately 15-20 hours a week as they manage the managers.

Check out the YFS Franchise Compass to learn about plotting your journey into the franchise business.

Franchise Business Pros:

Management Training and Support
Brand Name Appeal
Standardized Quality
Goods & Services
National Advertising Program
Financial Assistance
Proven Products & Business Format
Centralized Buying Power
 Territorial Protection

Franchise Business Cons:

 Franchise Fees and Profit Sharing
Strict Adherence to Standardized Operations
 Restrictions on Purchasing
Limited Product Line
 Unsatisfactory Training Programs
 Less Freedom

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