Two recent articles from Franchise Times and FranchiseDirect.com address the question of how much time franchisees can expect to invest in operating their franchises. The Franchise Times article approaches the question from the perspective of knowing when it is time to outsource, while the FranchiseDirect.com article examines the factors that influence how many hours franchisees work. Here, franchisee attorney Jeffrey M. Goldstein shares his thoughts based on well over 30 years of experience working with franchisees.
Two Approaches to Franchise Ownership and Management
There are two main approaches to franchise ownership and management: You can run your franchise yourself (an “owner-managed” franchise), or you can hire a manager to run your franchise for you (a “manager-managed” franchise).
Each offers its own benefits and limitations. For example, as an owner, you are fully invested in your franchise, and you know that you will put in the time and effort necessary to make your franchise a success. If you hire a manager, he or she is more likely to treat his or her position as a nine-to-five. On the other hand, if you have aspirations of owning multiple franchises, or if you are seeking to invest in a franchise while still working a full-time or part-time job, then you may have no choice but to hire a manager.
Hiring a manager also affords you the opportunity to focus on bigger-picture issues. If you are not talking to customers and dealing with employees on a day-to-day basis, you can devote more of your time and effort to your franchise’s growth. However, if you are not involved in your franchise’s day-to-day operations, this could also mean being unaware of issues that require attention or that are limiting your franchise’s profitability.
Of course, there are financial considerations as well. When you start your franchise, it might not generate the revenue you need to pay a manager (in addition to your royalties and other expenses) immediately. You can rely on your reserves, but whether this is worth it is a decision you will need to make based on your personal needs, preferences and finances.
As a Franchise Owner, You Will Need to Devote Time to Your Franchise
Regardless of which option you choose, as a franchise owner, you will be spending time on your franchise. Hiring a manager can reduce your daily burden, but you could also easily find yourself consumed with other franchise-related tasks. From talking to your manager to putting out fires, and from communicating with your franchisor to working on your franchise’s marketing plan or budget, you can still expect to play a central role in your franchise’s success.
Thinking About Buying a Franchise? Contact Franchisee Attorney Jeffrey M. Goldstein
If you are thinking about buying a franchise, there are lots of questions you will need to answer before you make the decision to move forward. To learn more, call 202-293-3947 or contact us online to schedule a free consultation with franchisee attorney Jeffrey M. Goldstein.