The options can appear limitless when looking into franchise opportunities. Several choices must be made, including how hands-on I want to be in running my franchise. Is this a short-term chance to increase earnings or a long-term investment? And do I want to pursue a new endeavor or draw on my prior professional experience?
Choosing between an owner-operator franchise and a management model will be among your first choices as you embark on your franchising journey.
Consider a franchise for a food truck where you drive the truck, cook the food, and serve the guests while handling the daily administrative tasks behind the scenes. The owner-operator delivers the franchise’s product or service. The majority of the time, this is your only duty and source of money. Because of this, you can exercise greater direct control over the company and are required to be on hand to handle any problems that may develop. Furthermore, growing a business frequently requires less capital than starting one, even though it could take a little longer because you have to be entirely hands-on to get the firm off the ground.
When you purchase a management franchise, a team will already be in place to handle the day-to-day operations while you oversee the team. You might employ a manager to administer the franchise on your behalf if you have other business interests, such as many franchises. You might own a fast food restaurant instead of the owner-operator with one food truck, and even though you might not be working “in” the business every day, you will be working “on” it on a strategic level. Check out how to manage a franchise.
Assistance with the Succession Planning
You have the opportunity to leave a lasting legacy when you invest in your own firm. You’ll have choices when it’s time to move on to greener pastures. You can choose to either continue to own the company while stepping back from making the strategic decisions by hiring a manager, or you can choose to sell the franchise to a new owner, again with the assistance of your franchisor.
In order to assist you to prepare for this day, franchisors will collaborate with you over the course of your franchise. After all, the chance for a better work-life balance is one of the main reasons investors choose a management model franchise.