When you hear the term “absentee owner,” a picture of a venture capitalist in a three-piece suit might come to mind, but that isn’t always the case.
Former business owners, first time moms and retirees all have purchased franchises and become absentee owners as well. So, whether you are seeking a business you can operate from afar or at home here are some things to consider before becoming an absentee owner:
- Analyze the company’s Uniform Franchise Offering Circular, which determines if the franchisor allows absentee owners.
- Think about the service or product you’ll be offering. Some franchises require more hands-on attention than others.
- Think about your personal preferences. Are you comfortable delegating responsibilities to management? Are you the type of person who likes to know what is going on at all times? Or maybe you like to offer that personal touch and greet customers with a handshake and oversee top notch customer service.
- Weigh the benefits and cost of hiring a general manager against the time you’d be contributing in their place.
- You’ll need to understand the function of every position in the franchise and how to perform the duties with each position.
- Keep in mind that you will still want to protect your investment by checking on its progress and success by reviewing daily financial reports to make sure the “registers balance” so to speak.
If you’re interested in purchasing a franchise and/or becoming an absentee owner of a franchise, please visit Franchise Solutions to help with your search.
This article was originally published by Franchise Solutions
Published: October 2, 2013