The model is called Semi-Absentee. Not every franchisor allows this type of management model, which is not a fit for everyone. Below, I will give you all a good understanding of what semi-absentee ownership is all about. I hope you all find value.
Semi-Absentee Ownership: Run a business working only 5 to 15 hours a week
Are you interested in investing in a side opportunity but not yet ready to leave your current job? Or are you a current business owner wanting to diversify but can’t commit to a full-time role?
That’s where the Semi-Absentee franchise model comes into play. Semi-Absentee franchise models are available in both Service and Brick & Mortar but more prevalent in Brick & Mortar.
Think about Orange Theory, Supercuts, Massage Envy… those are all Brick & Mortar Semi-Absentee franchises. You typically won’t ever see the owner in those stores.
What is Semi-Absentee Ownership?
In a Semi-Absentee business, the day-to-day operations are run by a General Manager (GM).
A General Manager is hired and manages all other necessary employees, and the owner’s role is managing the manager, focusing on KPI’s, business development, and financials. In a semi-absentee business, the owner needs to be able to put up to 20hrs a week (can be off-hour/flex-time) into the business but can typically expect 5-15hrs being the norm. Once mature, that number can get even lower. For example, my Homecare franchise is an Owner-Operator model that doesn’t allow Semi-Absentee Owners out of the gate. Well, once mature, franchisors are totally fine with it. Today, I work 2-5hrs a week in that business and go to the office once a week for a meeting with my GM. I operate my dumpster business and my porta potty business the exact same way.
Benefits of a Semi-Absentee Ownership
The flexibility of your schedule is the biggest benefit of Semi-Absentee ownership. As a Semi-Absentee franchisee, your business isn’t controlling much of your schedule, so you can choose to spend that extra time a lot of different ways. Keep your full-time job, spend more time diversifying through other businesses or investments, spend more time with your family, or spend more time on yourself. The point is, Semi-Absentee ownership provides a killer work/life balance!
Risk of Semi-Absentee Ownership
When you go the Semi-Absentee path, you are essentially hiring a manager to raise your new baby. So, that manager hire is HUGE!!! In a Brick & Mortar business, a GM doesn’t need to be quite as dynamic as a Service-based business. The Brick & Mortar models typically don’t have much outside sales/marketing or project management. So, my biggest advice is on the service side… make sure that your GM will be a willing salesperson. Many managers aren’t salespeople, so make sure you hire someone that is “hungry!”
Is a Semi-Absentee Ownership right for me?
Now, that’s the biggest question to tackle. Are you a good fit for Semi-Absentee ownership?
A few important things to evaluate:
- Do you have flexibility in your current schedule to allow for up to 20hrs of work on your franchise?
- Are you comfortable delegating essential responsibilities to your employees?
- Are you comfortable buying a business and handing that ‘baby’ over to a manager to raise, so to speak?
- Are you ok paying this person $50k+ in year one and more as the business grows?
If you answered ‘yes’ to all 4 of those questions, Semi-Absentee ownership could be a great fit for you.
Keep in mind not every franchise offers a Semi-Absentee ownership model. If you want to know more about what those options are, I am more than happy to talk them through with you! Schedule a time to chat on my calendar.