The COVID-19 pandemic has you working from home; and, without your daily commute, you have a lot more time available in your day. Your employer has indicated that your shift to working as a remote employee will be permanent, and this has you thinking: How can you make the most of your newfound free time?
Should you buy a franchise?
One of the common perceptions about franchise ownership is that it is – or can be – a “hands-off” investment opportunity. If you hire the right people, your day-to-day involvement in the business can be minimal. But, can it be minimal enough that you can run your business while continuing to work full-time?
As with most business and investment questions, the answer is, “Maybe.”
Is it Really Possible to Be a “Hands Off” Franchisee?
If you are thinking about buying a franchise and attempting to build your business while continuing to work for your current employer, here are some important factors to consider:
1. Some Franchisors Require Owner Involvement
Some franchisors require their franchisees to be involved in the day-to-day operations of their franchises. If you are planning on hiring a manager to run your business, you will need to make sure you choose a franchise system that allows you to do so.
2. Building Your Business Will Take A Lot of Time
While you may be able to hand over many of your day-to-day responsibilities to a manager eventually, you will need to be heavily involved during the pre-opening phase. From attending trainings to developing your grand opening marketing plan, you will have several responsibilities under the terms of your franchise agreement.
3. You Might (and Probably Will) Need to Be Available During Business Hours
Even if you have someone running your franchise’s day-to-day operations for you, you will still need to be available during business hours from time to time. Talking to the franchisor’s representatives, consulting with your franchise lawyer or accountant, and various other business obligations will require you to be available when you may also be on the clock with your employer.
4. You Will Need to Be Available When “Emergencies” Arise
Inevitably, business “emergencies” will arise from time to time; and, when they do, your manager will need to look to you for guidance. If you are working in your job, will you be able to drop everything and tend to your franchise when you are needed?
5. You Will Need to Be Committed to Your Franchise’s Long-Term Success
Finally, while you may be interested in owning and overseeing a franchise now, how will you feel two, three, or five years down the line? As a franchisee, your options for exiting the franchise system will be limited (until your franchise agreement expires, at which point you may have difficulty keeping your franchise). In order to generate enough profit to pay your franchisor, your manager and yourself, you will need to remain steadfastly committed to your franchise’s long-term success.
Are You Considering a Franchise? Schedule a Free Consultation with National Franchise Lawyer Jeffrey M. Goldstein
Are you interested in buying a franchise? If so, we encourage you to contact us to learn more. To find out which one of our fixed-fee franchise business review programs is right for you, call 202-293-3947 or request a free consultation online today.