Is a Semi-Absentee Franchise For You?
By Jo Gonzalez
Managing Partner, Your Franchise Success
Have you ever wanted to be in business for yourself but didn’t want to leave a secure job? Well, there are numerous franchise opportunities that exist that allow you to do just that.
Semi-Absentee Franchise Business Models
A semi-absentee franchise business model allows a franchisee to keep their day job. Franchisors in most cases will require at least 15-20 hours of oversight along with a full time hired manager to ensure success.
Also looked upon as a “manage the manager” type business model these franchise opportunities allow a franchisee to keep the safety net of their job while the business gets going. It’s not unusual for franchisees to have a goal of being multi-unit franchise owners and eventually leaving their full-time jobs once their business replaces their income.
On average, investments in this category tend to be retail and land in the $200,000 – $350,000 range for single units. Some outstanding category examples include:
- Hair Care
- Senior Care
- Children’s Products/Services
- Health and Wellness
There are several specialty franchise finance companies that are used to helping folks fund their franchise. Rule of thumb if you’re considering financing –these companies look for whatever the total investment is– your ability to come up 20-30% of the total investment yourself before financing. In addition, there are creative ways of using a 401K without taxes or penalties but certain criteria must be met.
No matter what category you find yourself interested in, the primary skills franchisors look for in potential owners include high level leadership, management and communication skills.
Many potential franchise candidates have the misconception that they need to be “experts” in a specific category to be successful. Not so! We have had many candidates feel like they could not qualify for hair care franchises because they didn’t have a barber or cosmetology background. Not what a franchisor cares about because you will never need to know how to cut hair!
In semi-absentee business models the goal is building equity and wealth which in many cases can translate into becoming a multiple franchise unit owner. Having good management, leadership skills and being well capitalized are what’s important in building a business.
What Can I Make?
While not an FTC requirement, many franchisors today provide an “Item 19 Earnings Claim” in their franchise disclosure document, (FDD) that provides a “snapshot” of the financial business potential. While it is not an end all, it does give you something to start with that you can eventually run projections with and discuss with current franchisees.
Do You Have What it Takes to Run a Semi Absentee Franchise?
YFS has a business profiler program that allows people considering franchising to determine if they have what it takes to run a semi-absentee franchise. In minutes after taking the business profile, results will show up in your email box providing additional insight for business success.
Jo Gonzalez is managing partner of Your Franchise Success, a Michigan based franchise business consultancy firm specializing in matching qualified candidates with quality franchise companies. She cites the “key” to helping candidates is developing a “franchise compass” (i.e. goals, skills, lifestyle they want to achieve before taking the leap into searching for franchise companies). Gonzalez is a seasoned franchise executive who has helped hundreds of franchise candidates find success through franchising. She also co-owns a nine year old automotive franchise with her husband Rick and has held numerous executive franchise positions including principal in home service, retail, food, hair care and children’s services. Jo can be reached at firstname.lastname@example.org, or by phone at 248.496.2893.