Franchise

4 Questions to Ask About Absentee-Owned Franchises

To generate passive revenue, you will need to run your franchise as an absentee or semi-absentee franchise owner. This simply means that you are not involved in the business's day-to-day operations.

The majority of smaller franchise operations are not operated in this way. Instead, the owners manage the business on a daily basis. They are known as owner-operators. As an owner-operator, your income is created actively.

We know that some level of absentee ownership is key, but most franchises require a minimum number of hours spent working on the business. In addition, as a semi-absentee owner, some franchises allow you to choose the responsibilities you wish to focus on, such as marketing, sales, or accounting.

This model allows you to leverage your abilities, expertise, and interests to expand your business and stay motivated.

If you want to know whether a franchise can be successfully managed as an absentee or semi-absentee owner, you should ask the four questions below.

1. Is Absentee Franchise Ownership Allowed by the Franchisor?

This is the most crucial question.

If the response is no, that franchise is effectively ruled out. Unfortunately, many franchisors do not permit absentee or even partially absentee ownership. However, there are many who do.

Here are some types of franchises that tolerate and even encourage absentee ownership. They might be excellent options for you to start with.

Boutique fitness franchises
Personal Care franchises
Children's Education or Well-being franchises
Car wash franchises
Salon franchises
Home Service franchises

2. Is there enough cash flow generated by the franchise?

You will want to own a franchise with high cash flow, meaning you have money left over after all operating expenses have been paid. When looking for a passive income franchise, you should ensure it has enough cash flow to support the management and staff.

If you purchase a franchise that does not create that kind of cash flow, you will be an owner-operator. You didn't acquire a business in that situation. You bought a job.

3. Is it necessary to have any special licenses or skills?

You want to purchase a franchise that will allow you to run the business without any specific knowledge, licensing, or training other than the training that the franchisor provides.

For example, if you wish to run an at-home childcare business, it might require a daycare license. Alternatively, if you are interested in purchasing a franchise in the health services field, you may be required to obtain a professional license.

Therefore, the less the business requires your talents and knowledge to handle daily operations successfully, the better suited it is as a passive income business.

4. Is Absentee or Semi-Absentee Ownership Available in this Business Model?

This is essential. When assessing a franchise, consider how many of the owners own numerous locations. If the answer is yes, then the business model can most likely sustain absentee or semi-absentee ownership.

When owning a semi-absentee franchise model, you can spend time developing your managers while building loyalty and trust with them.

Many car wash owners, for example, own several locations. They are clearly operating as absentee or semi-absentee franchise owners, and they are doing it successfully. Knowing that other business owners are achieving this should give you confidence that you can as well.

Closing Thoughts

Exploring the absentee or semi-absentee model can be an ideal choice for those looking to balance a day job with business ownership. This type of business and type of franchise ownership allows aspiring business owners to dive into franchise opportunities without the need for a full-time time commitment. By leveraging a strong management team to operate manager run franchise locations, individuals can experience the primary benefit of franchise business ownership: the ability to generate income while maintaining ample time for other pursuits.

Ultimately, whether you’re transitioning from a corporate role or seeking to diversify your investment portfolio, absentee franchise ownership or semi-absentee franchise ownership offers a flexible path to becoming a successful business owner. Consulting with a franchise consultant can provide valuable insights into the right business concept and help determine the best fit within this unique framework.

Are you interested in owning an absentee franchise? If so, please schedule a call here.

When Is The Best Time To Invest In A Franchise?

The ideal time to buy a franchise is decided by examining franchise prospects and asking yourself a few questions.

Before you can assess franchise prospects, you must first assess yourself.

Many first-time franchisees make the mistake of rushing into a purchase without first thoroughly researching the franchise opportunity and themselves. However, the most vital element of the equation is your willingness to take on the challenge of being a franchisee.

In a nutshell, if you are prepared for life as a franchisee, now is the time to purchase a franchise. When analyzing franchise prospects, these are three things you should ask yourself.

1. Do you have the mindset of a franchisee?
Owning a business involves innovation, creativity, dedication, attention to detail, interpersonal skills for managing people, among other things.

Your risk should be very low as a franchisee, much less than a startup. You are purchasing a tried-and-true company model with a strong candidate base. You should get started right away. However, becoming a franchisee necessitates certain abilities, such as:

The mentality of adhering to a pre-determined operating model and business system.
Experience in management, operations, sales, finance, or all of the above.

As a franchisee, you may be extremely successful if you have the appropriate mentality.

2. Are you motivated to succeed in this franchise?
Ask yourself why you want to start a business. Maybe you've had enough of the corporate merry-go-round, and you want more control over your future.

You may be dissatisfied with your current position and seek a new challenge.

Perhaps you've always wanted to be a business owner, and the thought of doing so inside a tried-and-true business model makes more sense than attempting to reinvent the wheel with a startup business.

Your motivation, whatever it is, must be sincere.

3. Do you have the necessary finances?
If you have the money to invest, it will be easier to turn that investment into a profit sooner, and those profits are likely to be more sustainable. In addition, with no interest payments to make, your bottom line will be stronger.

You can also finance your franchise investment by acquiring a small business loan or utilizing your retirement funds.

But has COVID affected franchises?
This is a question we've been getting a lot lately. The answer is yes, but not in the way you would think.

True, the economy has taken a setback, and small businesses are struggling. But on the other hand, franchisees enjoy a significant edge over their independent small business counterparts.

As a franchisee, you have the backing of a larger brand. They will assist you with marketing, training, and pricing. As a result, you can capitalize on their best business practices more quickly.

There is one more advantage for prospective franchisees. Because of the economic downturn, business values are relatively low. Therefore, you may never find a better time to invest.

Are you ready to evaluate franchise opportunities? If so, please schedule a call here.

This Young Franchise is Paving Over The Competition in a High-Ticket Industry

Almost everything has been done in terms of franchising. This comes as no surprise. In America alone, there are hundreds of unique franchise brands.

But every now and then, something fresh in franchising emerges, and when it does, I pay close attention.

That's why I'm posting this message right now.

I've lately been aware of a young brand that I feel is accomplishing something very unique.

So I decided to do a deep dive into the brand to determine if it has the identifying characteristics of a strong franchise.

Here’s what I look for:

Strong franchisor/leadership team that serves its franchisees
Top shelf online marketing
Strategic advantages over its competitors
Catastrophe stability (e.g., recession, pandemic, natural disaster)

All of it sounds obvious, doesn't it? Yet, you'd be surprised at how many brands fail to achieve those requirements.

I have so much more to tell you than what is in this email, but I want to provide you with a few details about the brand.

First and foremost, this brand exceeds all of the requirements I outlined above. Furthermore, it is a first-to-market franchise in a fast-growing industry.

From a franchisee's perspective, I love these five things about this brand.

Fantastic software, technology, training, and support from the franchisor
B2B Model
The primary focus is a preventive business which can be equally high average job ticket and recurring revenue.
No franchise competition
This brand is for pavement, and pavement is an asset, and it's everywhere.

There is a lot more I want to say about this brand that would be better saved for a conversation. I'm looking at my bullet points of why I like this brand, and I haven't even scratched the surface here.

If you’d like more information on successful franchises, please schedule a call here.

See How My Candidates Are Experiencing Entrepreneurial Freedom

Franchise options abound in today's economy. However, close examination reveals that not all franchises are created equal.

There are several advantages to entering this industry, including resistance to recessions, fewer start-up expenses, little overhead, a greater quality of life, and the option to work your own hours.
Many of the franchisees I have worked with have found their way to success, and I'd like to tell you about one of them. Kevin S. is someone I'd like to introduce to you. His thoughts are included below.

Question: What were the top three things (characteristics) you were looking for in a business?
Answer: A good business model with achievable positive cash flow in less than six months from the grand opening.
Semi-absentee.
A franchisor that offers lots of support and has a track record of success.

Question: Did you experience fear/hesitation/anxiety at some point? When? How did you deal with it?
Answer: I experienced hesitation throughout the entire process for a variety of reasons. I dealt with it by keeping a running list of questions. During validation calls, I would ask the same questions to each franchisee (or Franchisor). This often led to more questions and the need for more validation calls. Essentially, I found that there can be a wide variety of answers to the same question and the success of each franchise really depends on the owner’s due diligence, organizational skills, ability to execute a plan and drive.

Regarding fear and anxiety, I really didn’t experience much of this until it came time to make a decision. Do I write the largest check of my life? Do I have enough capital to see this through? Have I planned for the worst-case scenario? What is the worst-case scenario? Could I lose everything? Did I forget to ask an important question that would change my mind? Am I taking way too big of a risk? Then it hit me,I just spent two months asking 50 million questions that helped me develop some conservative but acceptable projections. Did I miss something? Probably. But I made enough connections to get any question answered or any problem solved. Regarding that huge check, I didn’t want to part with, once I paid it, the fear and anxiety disappeared. It was replaced by a drive to be successful (I hope anyway).

Question: How valuable did you find talking with franchise owners? Anything especially surprising or interesting?
Answer: Talking with as many franchise owners is without question the most important part of the process. Not only does it help you with your decision, but if you decide to move forward, you have also made a useful connection.

Question: Did you feel well equipped at the start of the validation process? If not, what could you have known before?
Answer: When I started the validation process, I thought I had to contact the owners directly to get them to speak with me. I was not aware there were biweekly group validation calls set up by the Franchisor. However, I would still recommend that a franchisee not only participate in the group validation calls but all reach out to owners directly for one on one calls. Again, this helps to form a useful connection if you decide to move forward.

Question: When did you know that this was the right franchise for you?
Answer: It took a while for me (about two months). I thought I knew before the discovery day. Then, I was almost talked out of it by other potential franchisees from discovery day. A few days after discovery day and after a few more validation calls, I realized that the other potential franchisees had not done the same amount of homework as I had.

Question: Do you think you would have found this business without my help/guidance?
Answer: Probably not.

Question: What did you think about the unique perspective I gave to you being an experienced multiple-unit franchisee?
Answer: It was helpful to know that you have gone through the same process. It was also helpful to know that you own a multi-unit franchise.

Question: Now that you have gone thru my process, what advice would you have for someone that is thinking about owning a franchise?
Answer: Do your homework.
Call as many franchise owners as possible.
Ask a lot of detailed questions.
Ask yourself if you plan and/want to stay in your corporate job for the rest of your life.
Use Ryan Perry to help find a franchise that fits your situation.

Let me help you find your path to franchise ownership. Please schedule a call here.

Why Do You Need A Franchising Advisor?

With over 4,000 franchises available, how do you choose the best one for you? This is where a Franchise Advisor can help.

I am a business matchmaker. I use a proven process to help ambitious entrepreneurs identify the ideal franchises for their situation.

A Franchise Advisor is a franchising industry professional who is always up to speed on the latest developments in the industry. I also understand industry specifics that you won't find in a Google search.

Franchise Advisors ask questions like:

What types of franchise arrangements are ideal for each candidate?
Which franchises have an excellent support team and systems to help new franchisees succeed?
Which emerging brands are hidden gems in the franchise market that offer significant opportunities for investors?

Here is a rundown of the reasons to work with a Franchise Advisor:

Gain access to insider knowledge that isn't available on a Google search.
Receive advice from an industry expert.
Learn about popular industries and new brands before everyone else.
Avoid costly mistakes.
Learn which factors to consider and how to analyze the prospects effectively.
Get assistance in locating the best franchise for your expertise and situation.
Learn about franchise financing possibilities and gain access to finance partners who can help you make your investment a reality.
Discover hidden treasures in the franchise business, such as franchise models, to help you develop wealth.
Using a Franchise Advisor's service and advice is free of charge.

What makes a good Franchise Advisor?
A good Franchise Advisor will always keep their candidate's best interests in mind. I will listen to you, understand what you want to achieve, and base my franchise recommendation on that.

I will collaborate with you throughout the entire process, beginning with the first meeting and continuing until you are ready to make a decision, even if you decide not to pursue the investment. Finally, I will always be ethical and transparent with you.

If you’d like to find out how I can help you find your franchise match, please schedule a call here.

According To The 2022 Economic Forecast, Franchising Will Help Lead The U.S. Recovery

The International Franchise Association (IFA) has issued its 2022 Franchising Economic Outlook, which indicates that franchising is a driving force in the United States' economic resurgence.

The research reveals remarkable employment and business growth over all franchising industries, from Personal Services to Lodging, through 2021.

What is the forecast for 2022?
According to the statistics, 2022 will be another excellent year for employment and salary growth in the fast-growing, locally-focused franchising market.

Oxford Economics research indicates:

Franchises pay approximately 3% more than similar independent businesses.
Health insurance is provided by 65% of franchises.
Vacation, sick leave, and other benefits are provided by more than 75% of franchises.

The following are some of the report's key highlights:

Following the 2020 shutdowns, franchise output returned by more than 16% in 2021, reaching approximately $788 billion.
Franchise growth is predicted to level out in 2022, with a 2.2% increase to 792,014 franchises, 17,000 higher than in 2021.
Franchise employment is expected to rise at a rate of 3.1% to 8.5 million jobs, returning to pre-pandemic levels and representing a net gain of up to 300,000 jobs.
Personal Services franchises are expected to dominate growth in 2022, followed by Commercial & Residential Services.

The report shows that states have seen varying economic recovery rates due to differences in business climates, migration trends, and changes in consumer preferences.

At the state level, it is anticipated that:

In 2022, states in the West and South will have the fastest rising trend of franchise business growth.
The Southeast region, which has the highest franchise concentration in the U.S., is expected to have 231,500 total establishments by 2022 while employing 2.6 million people and contributing $235.9 billion to the U.S. economy.
Texas, Florida, Arizona, South Carolina, Idaho, Tennessee, North Carolina, Utah, Montana, and Nebraska are anticipated to be the top ten states for franchise expansion in 2022.

Would you like to be a part of franchising growth in 2022? Please schedule a call here.