Opinions expressed by Entrepreneur contributors are their own.
Key Takeaways
- Even the most proven franchise systems require active, engaged ownership — there’s no “autopilot” mode.
- The semi-absentee model is often misunderstood; it’s viable only for well-capitalized, experienced owners.
- Franchise success is proportional to effort — those who put in the work almost always outperform expectations.
Naturally, there are a lot of myths about franchise ownership that seemingly refuse to die. For example, a percentage of our population mistakenly believe that franchising is just McDonald’s and Subway — which is excellent brand awareness for them. But for new and emerging concepts that actually have a high-functioning business model and enough key differentiators to provide a reasonable rate of success among franchisees? Not so much. Fortunately for them, however, there is an ever-increasing number of savvy marketing tools and resources at their disposal, crafted to hone and perfect brand awareness among prospective candidates.
We could debate other famous franchising myths ad nauseum, but I’d like to focus on one of the more infuriating misconceptions that remains stubbornly persistent. The idea or notion in some candidates’ minds that simply following the franchisor’s proven business model — and perhaps also aided and abetted by unscrupulous or overzealous sales speak — the new business they’re preparing to launch is all but capable of running itself.
News flash: it isn’t.
Autopilot not included
The majority of the 3,000-4,000 franchisors in the marketplace bend over backwards to facilitate the success of their franchisees. Proven business models, the centerpiece of their operational functionality, are often refined over time to help franchise owners become even more streamlined, efficient, and profitable. Pre-launch corporate training programs are continuously becoming more comprehensive and compelling for green recruits in the franchisee network.
Lastly, thanks to a wave of digital innovation ushered in by the new era of AI technology, corporate support is reaching new heights of effectiveness in resolving the challenges and obstacles that hinder progress. Are today’s franchisees set up for success like never before? It would be hard to disagree. But is there an autopilot switch for new franchisees who mistakenly believe they can coast their way through the Second Act of their careers? No sir, there isn’t.
‘Semi-absentee’ ownership
Lots of pro-franchising folks like to tout the different ownership models available to aspiring franchise owners and rightfully so. There are definitely some creative options that define your level of involvement and investment, but one of the most popular is the semi-absentee model. Whenever this particular sales pitch is given, it’s easy to see why some candidates would assume the business will hum along with little to no action required, just oversight. While there are a precious few concepts where this is possible, they’re definitely the exception, not the norm.
In reality, those who opt for semi-absentee ownership aren’t typically your average mom and pop owner. In fact, many are enterprise-level business owners with significant capital on hand and a portfolio of holdings they’d like to diversify through franchise ownership. To them, it’s nothing to hire a qualified executive so they can sit back and “manage the manager.” But if this isn’t you, you should get an accurate reading of the number of hours you’ll be expected to put in. And don’t just take it from the sales guys who tend to oversimplify the details, get out there on your own and conduct some validation with other semi-absentee owners in the network if you want the real story. Whether you choose to become a hands-on owner with full control over the day-to-day operations or spend 20 hours per week as a semi-absentee owner, one constant remains – results almost always reflect involvement.
Related: How To Buy A Semi-Absentee Franchise While Working A Full-Time Corporate Job
Managing expectations
All my life, I’ve been a serial entrepreneur and I have a deep and abiding love for the freedom and flexibility that come with taking charge of your own destiny. I’m a firm believer that you can spend your life building your own dream or building someone else’s. I’ve also been a successful franchise owner, so I know the business from the inside-out. Part of the responsibility that comes with being such a passionate advocate for franchise ownership is in managing people’s expectations. As I’ve pointed out, today’s franchisors are doing as good a job as ever when it comes to setting up new franchisees for success. But that success is still largely dependent on your level of effort and involvement.
Despite all the tools, resources, training, and support you’ll be provided with, franchises are not perpetual motion machines that continue to operate on their own after a hearty jump start. It takes active ownership where you may be expected to hire, train, and manage employees. You’ll have to stay engaged with your financials and carefully monitor cash flow. You’ll be expected to network within your community and relentlessly pursue new business for your operation to succeed. And, as the franchise owner, you’ll be expected to follow the brand guidelines and continually ensure that you’re in compliance with the franchisor’s operational rules and regulations. Guess what? That’s hard work.
I’ve had the pleasure of speaking with countless successful franchise owners who have gone on to establish thriving businesses of their own. Many of them have succeeded beyond even their own wildest dreams. But almost to a person, there has been one universal theme in their feedback about franchise ownership – how hard they had to work to get there. Most even admitted they had to work harder than they did in their previous careers. Which brings me to my second universal theme. Nearly all of them shared they had but one regret – that they hadn’t pursued an entrepreneurial life sooner.
If you decide to buy a franchise, it most definitely will not run itself. But in my three decades of working in this industry, I’ve yet to meet a successful owner who didn’t enjoy putting in the required effort to get there. Let’s hope you’ll do the same.
Related: Great Leadership Takes Hard Work…and Pays Off
Key Takeaways
- Even the most proven franchise systems require active, engaged ownership — there’s no “autopilot” mode.
- The semi-absentee model is often misunderstood; it’s viable only for well-capitalized, experienced owners.
- Franchise success is proportional to effort — those who put in the work almost always outperform expectations.
Naturally, there are a lot of myths about franchise ownership that seemingly refuse to die. For example, a percentage of our population mistakenly believe that franchising is just McDonald’s and Subway — which is excellent brand awareness for them. But for new and emerging concepts that actually have a high-functioning business model and enough key differentiators to provide a reasonable rate of success among franchisees? Not so much. Fortunately for them, however, there is an ever-increasing number of savvy marketing tools and resources at their disposal, crafted to hone and perfect brand awareness among prospective candidates.
We could debate other famous franchising myths ad nauseum, but I’d like to focus on one of the more infuriating misconceptions that remains stubbornly persistent. The idea or notion in some candidates’ minds that simply following the franchisor’s proven business model — and perhaps also aided and abetted by unscrupulous or overzealous sales speak — the new business they’re preparing to launch is all but capable of running itself.
The rest of this article is locked.
Join Entrepreneur+ today for access.
(Source)