Learn about the three types of franchise ownership: owner/operator, absentee, and semi-absentee. Find out which one is best suited for your style.

Which of the three franchise ownership styles will be the key to your success?

3 Paths to Success

Franchises are famously more successful than independent businesses in both the short and long run. What franchising has to offer is the backing of an established brand, a successful business model, a dependable support team, and an expert staff to help you reach your business ownership goals. At the same time, not all franchises are created alike, and therefore it is essential for all prospective franchise owners to take their time figuring out which type of ownership model best fits their goals.

There are essentially three different types of ownership of a franchise to consider: owner/operator, absentee owner, and semi-absentee owner. The model you choose will depend on your goals, investment structure, and desired involvement with your franchise operation.

Each franchise ownership model offers its balance of responsibilities and varies in time commitment, operating costs, scalability, and personal freedoms. Let’s examine the three common types of franchise ownership and how they compare to each other.

Owner/Operator

As implied by the name, this franchise model lets franchisees hold the reins in the day-to-day operations and management of the business. This ownership style is perfectly suited for those who want total control over their investment and want to make all operational decisions. The drawback may be a greater time commitment, but it is ideal for anyone looking for a career change. This model is also perfect for first-time franchise owners, as you will learn the workings of your brand and its practices from the ground up and be able to confidently lead your team to success with the support and backing of your franchisor. Of the three main types of franchise ownership models, this is the most common.

Absentee

This model offers franchisees an arm’s-length style of management that treats the business mainly as an investment opportunity, without changing much about the investor’s day-to-day life. While the franchisee owns the business, time commitments are minimal as all operational functions are outsourced, including everyday management duties. The downsides to this model include the need for higher staffing and operational costs. The owner is also placing the success of their business in the hands of those they have entrusted to run it when they’re not around. At the same time, this model allows for more personal freedom and scalability. You will often see athletes or celebrities take this approach to franchising when they venture into business ownership.

Semi-Absentee

Semi-absentee ownership balances the best of both previously mentioned types of ownership, with operational responsibilities falling between a hands-off management style and the total control of an owner/operator. Semi-absentee owners generally rely on the help of a general manager to cover day-to-day operations as they support the business financially while still focusing on another day job. Success with the first location can open up the option of purchasing new units and focusing primarily on growing the franchise network. Semi-absentee owners have likely had previous experience in the franchising world, so they possess the skills and confidence to hand off daily duties while still staying on top of the overall operation.

Find What You’re Looking for with Home Franchise Concepts

Each ownership model comes with its own set of characteristics and pros and cons. It’s important to find the investment that best lines up with your personal and professional goals. Currently, Home Franchise Concepts (HFC) enriching brands are primarily owner-operator and semi-absentee ownership opportunities. Either way, HFC is prepared to support you every step of the way whether you are looking for hands-on ownership or semi-absentee.

HFC is one of the largest franchising companies in North America, with a growing family of franchise brands including Budget Blinds, The Tailored Closet, Concrete Craft, AdvantaClean, Bath Tune-Up, Kitchen Tune-Up, Two Maids & A Mop, and Aussie Pet Mobile, with a brand to suit any franchising and homeowner needs in the home services space. With franchisee success at the heart of everything we do, HFC focuses all its energy and resources toward finding the right franchise model for our investors to provide them with long-term business success.

To learn more about different franchising opportunities with Home Franchise Concepts, contact us today.