Absentee franchises could work to your advantage if you want to build your business portfolio or buy a franchise while holding down a part-time or full-time job. However, even though you’re not directly involved in the day-to-day running of the business, it is still a significant investment and commitment. Therefore, take a look at the pros and cons while also comparing some of the popular franchises that welcome absentee ownership.

What Is Absentee Franchise Ownership?

Absentee franchise ownership is when you hire staff to manage daily operations while “absent” from the business. In other words, you oversee the business from a distance, which frees you up to do other stuff. In contrast, if you are an owner-operated franchise, you’ll run the business hands-on and be fully involved. There is also semi absentee franchise ownership, which falls between these two options, where you work part-time in the business.

Some businesses are more suited to absentee ownership because they practically run themselves, provided you have a reliable management team in place. For example, some automotive franchises, like a car wash business, can be a good fit for managing remotely or as a semi-absent venture because trained and trusted staff can handle the jobs without on-site owner supervision. The same goes for gyms that follow a straightforward business model.

In contrast, some of the quick service restaurants (QSRs) like McDonald’s or the ice cream franchise Dairy Queen don’t allow absentee ownership because typically there is a lot to manage on-site, such as ensuring quality control and keeping up with food safety regulations. High employee turnover in this industry is also a factor, which can be more challenging to manage remotely.

Advantages and Disadvantages of Franchise Absentee Ownership

Be realistic about how much time you can commit to running your business. If you’re seeking a better life-work balance or more flexibility, it is also worth exploring work from home franchises. As with any type of franchise, there are pros and cons to being an absentee franchise owner:

Advantages

• Potential better work-life balance because you’re not fully involved in the day-to-day operations.
• Some companies that allow absentee ownership are also low cost franchise opportunities.
• Take advantage of franchise training and support to help improve your business efficiency without micromanaging everything.
• You could maintain a full-time job, which gives you financial security while you grow your franchise business. If eligible, some absentee franchises have franchise opportunities for veterans.

Disadvantages

• Business success relies heavily on the people you hire to manage your business. If you have difficulty putting together an experienced team, it could affect your reputation and profits.
• Higher costs for additional management salaries, even with cheap franchise opportunities.
• Your choices are limited because many brands don’t allow absentee ownership.
• You’re not on-site daily, so you can’t keep a close eye on business operations and customer service. This absence may result in franchise standards and revenue slipping.

Talk to Other Absentee Franchise Owners

Speaking with other absentee owners offers valuable insights. This firsthand information helps you understand what to expect from this type of venture. Joe Gonzalez, VP of Operations at DetailXPerts, ran a successful car wash business as an absentee franchisee. He shares his top 3 tips:

1. Find the right manager. Having a strong leader in place is essential to ensure the business runs smoothly. This leader must possess not only the technical skills needed to ensure high-quality work, but they must also have strong problem-solving and customer service skills, and a high level of integrity.
2. Communication is key. I checked in weekly at a minimum, sometimes more, depending on how full the schedule was. A lot of communication can be done by text, but one-on-one calls are also helpful in understanding the nuances of what is impacting the business.
3. Be hands-on at first: At DetailXPerts, I think the first year or two require a full-time owner-operator. Once the franchisee has built up a strong clientele and has steady leads coming in, they can probably step away depending on their financial structure.

Other Factors to Consider

If you’re seriously thinking about absentee ownership, ensure you take other factors into consideration to help you make an informed decision. For example:

• Ensure the franchise provides high-quality training programs and ongoing support because this will help you guide your management team.
• Technology in business has also come a long way, which helps you manage your teams more efficiently from afar. For example, accounting software can help you handle your finances remotely. Equally important, customer relationship management (CRM) tools help you keep an eye on customer satisfaction, while employee management platforms make it easier to stay connected with your staff.
• Don’t stay away too long, even if you manage your business remotely. I.e., occasional check-ins with your team on-site can be beneficial and you can address any problems in person.
• Even though you’re hands-off running the business, you still need to oversee and be up to speed on everything regarding labor laws, liability and insurance.
• When researching which industries are most likely to franchise, carefully review the franchise agreement for any restrictions specific to absentee owners.

Absentee Franchise Companies

Even if you don’t have plans to be on-site running the business full-time, it pays to invest in a company that aligns with your passions and goals. Your enthusiasm and dedication to growing your business will motivate your management team and employees. Here is an idea of popular sectors and brands:

Car Wash and Cleaning Franchise

DetailXPerts offers absentee franchise opportunities. However, you may prefer to be more hands-on if you want to take full advantage of its scalable business models. For instance, you can use fully equipped vans to run your mobile auto detailing or commercial cleaning business. Or you can combine mobile units with an auto detail shop to benefit from multiple profit centers. Investment costs range from $103,500 to $240,100.

Car Care

AAMCO Transmission and Total Car Care services thousands of cars annually and provides comprehensive training programs to support your startup journey. If you get a good team in place, this can work as one of the absentee owner franchises. The initial investment for this transmission repair franchise is $236,000 to $361,200.

Moving Company

Two Men and a Truck is a professional moving company that has carried out more than 10 million moves since it opened for business in 1985. As well as absentee ownership, it also offers international franchising opportunities with locations across the United States, Canada, the United Kingdom and Ireland. The initial investment is $108,000 to $270,000.

Gyms and Fitness

Workout Anytime is a gym franchise with semi absentee franchise ownership options. You can choose to open a single club or multiple locations. The company says many franchise partners keep their full-time jobs by hiring qualified and trusted staff to run daily operations. The initial investment is $500,000 to $900,000.

Vending Machines

Healthy You Vending aims to meet customer demand for healthier food choices from vending machines. You don’t need employees. Also, you can remotely monitor your vending machines and then fill them when needed. The initial investment cost is $60,000 to $185,0000.

Conclusion

To sum up, absentee owner franchises can help improve your work-life balance, freeing you up to do more of what you want. Equally important, you can hold down another job, which helps reduce the financial risk of starting a business. Alternatively, semi absentee franchise ownership is an option if you want to be more involved.

However, taking a step back from the business means you could earn much less than someone hands-on and overseeing the workflow full-time. There is a lot to be said for being on-site and fully committed to operational excellence and customer service. Furthermore, your presence can motivate and encourage your team to work hard and achieve set goals and targets.

Above all, let your passion and interest guide you. If you love your line of work, you’ll want to make it a success regardless of whether you work on the business full-time or remotely. Also, look at the growth potential. For example, DetailXPerts’ mobile cleaning franchise taps into the lucrative green market using steam. You can build a robust business auto detailing and fleet cleaning, serving B2C and B2B customers while also offering commercial cleaning services.

Learn more about life as a franchisee by downloading our FREE EBOOK on 4 Franchise Owners Who Found Success with DetailXPerts.