As a franchise coach, I work with many entrepreneurs to help determine what type of franchise business model will work best for them. One model, previously reserved solely for high-investment brick-and-mortar franchises, is the semi-absentee business. This business model, in which owners hire managers/employees to run day-to-day operations for them, is becoming more affordable, expanding options for prospective owners.

What Is A Semi-Absentee Franchise Model?

The semi-absentee model has proven it can be very successful. There are several things franchise candidates should know about semi-absentee franchise systems and what it takes to become successful with this model.

Semi-absentee ownership, or an executive business model, is not a new concept. Previously, these franchises focused on brick-and-mortar service industries such as beauty, hairstyle, carwashes and laundromats. It has also been present in higher-end investments, such as large restaurants and hotels. As mentioned, we have seen this spread to more business models recently and a wider range of industries in franchising are starting to use this model. Some examples include maid services, fitness concepts, and executive recruiting companies, all of which have proven to be very successful when run by managers rather than owners.

How Do You Succeed As A Semi-Absentee Franchise Owner?

Occasionally, I hear the term “absentee ownership.” I don’t believe this is an accurate description of this model. It is not as simple as buying a business, letting others run it and reaping the financial benefits while playing golf or sitting on a beach. A business owner in this type of structure needs to hire a manager and actively manage that individual. Although the owner doesn’t need to put in the typical 9 to 5 work week, they often need to dedicate 10 to 15 hours per week to manage the business. That may come in the evenings or on the weekends, and requires additional responsibility. They need to be very active in overseeing their manager and monitoring all aspects of their operation.

People who want to get involved with a semi-absentee business will also need to realize that they are placing a large amount of responsibility in someone else’s hands. This is not an ideal fit for those who need to control every small detail. Owners, especially those trying to retain their day job for consistent income, must find a manager and trust the manager to run the business in their absence.