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Is the Absentee Ownership of a Franchise a Viable Option for You?

Is the Absentee Ownership of a Franchise a Viable Option for You?

If you’re considering a franchise business but not yet ready to give up your day job, perhaps absentee ownership of a franchise is an option you can take. Absentee ownership is when you hire somebody to run the business for you. Like any other business venture, it is not going to be an easy track all throughout your journey.

Advantages and Drawbacks of Absentee Ownership of a Franchise


You get steady income without investing much of your time

According to Houston Chronicle, absentee business ownership does not require you to be active in the daily operations but you need to get a regular report on how the business is doing. As such, not all absentee ownership can be successful but it can still generate profit with the right team to handle the job.

Continue with your full time job

A relatively small fraction of franchise owners falls into this category. In a way, absentee ownership of a franchise can give these business owners a stream of additional income without giving up their full-time job. The good thing is that their franchise ventures can be totally different from what they do with their 9-5 jobs. This can be another benefit because when either of the two ventures does not do well, you still have an option and a source of additional income or supplemental income.

More free time

More free time

More free time
img src: Unsplash

Nathan Goldstein of Vested Business Brokers says that absentee based businesses like absentee based franchise can allow you to sit down in a lounge chair somewhere.  You would still get your paycheck at the end of the week or the month as the business operations continue to be managed by your hired personnel.
Run multiple businesses at the same time

Much like continuously working for your full time job, absentee ownership of a franchise can allow you to run other businesses simultaneously. This is because you do not need to spend much time on your franchise business. More business ventures can mean more profit for the business owner.

Your investment is entrusted to someone else

Adrian Stone, a published writer and investor does not believe that absentee businesses can work.  He says the leadership and the vision should come from the owner of the business and will not work if coming from hired help like a manager. Although he qualified that some types of businesses may work, he stressed that in general, absentee business does not grow and profit. In addition, says that it is expected that your manager will not put the same effort as an owner would in his own business. This is a recipe of your downfall as an owner. The more responsibility you give to the manager, the more control you give to someone which takes away your control over your own business. As the same source puts it, “As a paid employee, while they may be trustworthy and do a good job, at the end of the day, it still isn’t their business. If it fails, they just walk away and go get another job.”

Need for good quality check and process audit

The issue of stealing from the business cannot be taken away from the equation for absentee ownership of a franchise. Make sure you have trustworthy employees. Apart from this, the proper procedures, protocols and check and balance systems should be in place. This is necessary to ensure proper money and supplies handling. Some experts suggest random checks and unannounced visits should be a practice.
More capital

Of course, if absentee franchise ownership allows you more free time, the advantages will not come for free. Most absentee businesses need more initial capital. Don’t forget the additional amount since an expected higher wage should be allotted for your manager.  This is to make sure he effectively oversees your business as you go about doing other things or being busy with your 9-5 job.


While a lot of business owners are looking into this absentee ownership of a franchise option, there are also lots of drawbacks that a would-be franchisee needs to understand before going into this business venture. For one, you need to have higher capital, a trusted management team and a stable check and balance system of operations. If everything has been placed effectively, you can enjoy the perks that this type of business venture can bring. It can allow you more freedom and less effort. It can give you the opportunity to explore other businesses or interests.
Perhaps, it will all boil down to personal choices and personal interests. Having a stable business partner can make you enjoy more benefits and surpass the hindrances as training and support will be provided. Check out the DetailXperts opportunity as both semi-absentee and franchise owner options are offered. With the right partner, you’ll get the chance to have your cake and eat it too.


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