Full or Part Time. Which franchise model is right for you?

Have you dreamed of starting your own business, but found yourself hindered by the vast of amount of information to consider? For many, the allure of franchising is the structure it provides, which alleviates much of this guesswork and early mistakes. If you are considering franchising as a means to business ownership, it is important to understand the differences between the "owner-operator" and "semi-absentee" business models. Once you understand the distinctions, you can evaluate your own personal goals and strengths to determine the best fit for you.

Owner-Operator Model

Most franchisors require their franchisees to commit to the owner-operator model. In other words, they expect owners to work full time, 40 hours or more initially, to oversee the day-to-day operations, plus handle the back-end aspects of maintaining and growing the business. While the franchisee enjoys the freedom of working for themselves, he/she must personally assume a wide range of responsibilities.

The owner-operator model is the better option for those who want to be directly involved with the businesses they own. It allows small business owners to save the time and money it would cost to hire, train, and supervise someone else to manage the business. If you look into buying a franchise, you will have many more options if you choose this model.

Semi-Absentee Model

For those who would like to own a business, but do not wish to (or cannot due to a day job or existing business) be heavily involved in the daily operations, the semi-absentee model is the better option. While there are fewer semi-absentee franchises, they are becoming more prevalent. The nature of some businesses allows for owners to be much less involved, or "semi-absent," from the day-to-day functions of the franchise, typically devoting 10-20 hours per week managing the manager, marketing the business, etc. Because this seems like a much smaller time commitment, people are buying franchises while maintaining their full time careers. However, it is important to note that establishing a business requires a larger commitment initially.

If you would like to maintain your current full-time job, along with any health or retirement benefits you currently enjoy, you might want to consider this option. A significant number of franchisees keep their day jobs, while starting a semi-absentee business to develop an additional revenue stream and a hedge against potential layoffs or corporate restructuring. You can achieve your dream of owning your own business, without giving up the status, salary or relative security of your current position.

Before committing to the role of semi-absentee franchisee, business owners must assess how comfortable they are with handing the reins to their company over to someone else. If you choose to do so, you will need to hire carefully and commit to the training and staff development necessary to ensure your success. People who are used to being in a position of authority or who enjoy keeping their thumb on the pulse of the business would be better suited for the owner-operator model. However, if you can manage others effectively, semi-absentee ownership might be a means to own a business and grow it into a multi-unit enterprise.

Would you like to know more about this type of model and the opportunities available?

Join us, Friday, November 3rd, for a SEMI-ABSENTEE Franchise Ownership Options Lunch ‘n Learn in Sterling Heights. To learn more and register, go to www.michiganfranchiseforun.com/local.html.

While both models are viable routes to business ownership, deciding which industry, business model, and franchise to invest in is likely to be an overwhelming proposition. An experienced franchise consultant considers unique personalities, values, and leadership styles, as well as current personal and professional commitments, when matching prospective business owners to the best franchise opportunities. If ownership and independence is really important to you, don’t wait to get the education and help you need to begin your journey to entrepreneurship. We’ll help you get started NOW!