What Are the Best Types of Absentee Businesses?
If you’re an entrepreneur looking to reap the benefits of a proven business model without making a hands-on commitment, it may be time to consider purchasing an absentee or semi-absentee franchise.
Having multiple streams of revenue can be the key to building your wealth—and although many traditional franchise models require an owner to be on-premises to grow the business, an absentee or semi-absentee model offers greater flexibility. Many even provide you the option to keep your current full-time role or manage multiple franchises simultaneously.
What is an absentee franchise model?
An absentee or semi-absentee franchise is designed to be employee-run. Out of the various franchise models available, it offers the most hands-off approach for owners. It enables you to manage the franchise as an investment opportunity without much day-to-day involvement, meaning you can track your progress from afar.
As a semi-absentee owner, you will need to check in regularly, but you’ll still have plenty of time to pursue other opportunities. In some cases, you may act more as a silent partner rather than a full-time owner.
Obviously, this type of approach won’t work for all franchises, so it’s important to realize that there are only limited franchise types available that are appropriate for this type of ownership. For example, dry cleaners, fitness centers, home services, car washes, or textile recycling franchises are great options for absentee franchises.
Some franchises rely on experienced staff to run the daily operations with minimal oversight, while others, like textile recycling, don’t require staff to be onsite at all.
Benefits of owning an absentee franchise
The main benefit of owning an absentee franchise is that you don’t need to be onsite to run your franchise. It gives you the opportunity to generate wealth outside of your franchise while still growing your business. It also allows you to reinvest your profits into another franchise, continually accumulating your assets and getting you closer to financial freedom.
Best absentee franchises
If you’re considering investing in an absentee business, it’s important that you choose the right one. Here are four simple questions you should ask to help you identify which franchise is a good opportunity for you.
#1 – Does the business have a simple operation plan?
The simpler the business is to operate, the better. Simple business plans are usually a good indicator that the franchise can be run using an absentee or semi-absentee ownership model. For example, if the franchise you’re considering has no physical location to manage, no inventory or customer interactions, and has limited legal or compliance regulations, it’s usually a good sign that it’s fairly straightforward to manage.
#2 – Does the franchise require the owner to have specialized skills?
Any franchise that depends on having specialized knowledge, skills, or relationships isn’t usually a good option for an absentee ownership model. The value in these business models lies with the individual, and it’s difficult to step away as the owner if you need to be involved in helping the business succeed.
#3 – Is the franchise well established?
The most successful absentee-run franchises have excellent franchisee support, are well established, proven, and have easy-to-run daily operations. Look for businesses that have a long and good-standing history. Ideally, finding one that has lasted through different economic conditions is a great choice, as you will have more confidence in how your business will perform if the economy has a downturn.
#4 – Are there detailed procedures in place for new franchise owners?
A detailed operations manual is like a roadmap for running your franchise business. Without this, you will face many uncertainties that will arise and require your time to solve. Having access to a detailed operations manual will make it easier for you to manage your franchise.
Considerations when choosing a franchise model
Knowing which franchise is right for you means doing your research. Spend time investigating each potential franchise’s financial strengths and weaknesses and identifying the market, demand and location you’re exploring.
Also, consider attending franchise shows, speak to franchise brokers and chat to existing franchise owners to find out as much as possible before you make a decision. When you’re ready, be sure to chat with a lawyer or accountant with experience in franchise negotiations.
Become a clothes recycling franchisee
If you’re interested in a semi-absentee franchise that requires little hands-on management, a Clothes Bin clothing recycling franchise opportunity could be a great choice for you.
At Clothes Bin, it’s as simple as finding a suitable location to place your Bin and you can start generating a profit. In addition, you’re helping to reduce landfills by promoting and educating others in your community about the benefits of recycling clothing, shoes and other textiles.
If you’re interested in exploring franchise ownership further, request more information today. Our team can talk you through all the details and show you why Clothes Bin makes an excellent low-cost business franchise for investors.