Passive Income Franchises Real or Fake? semi absentee

Want to invest in a franchise but keep your day job? This is the video for you!
Check out our article on the topic here: www.vettedbiz....
#FranchiseInvestment #SemiAbsentee #PassiveIncome #PassiveBusiness #VettedBiz
Patrick Findaro here, co-founder at Vetted Biz and Visa Franchise. Today I wanna talk a little bit about semi-absentee as well as passive income franchises, and go over a few of the myths, and what these business opportunities are all about.
So, to be very straightforward, there is no passive franchise investment that I'm aware of where you're owning 100% of a franchise business, and you don't have to do anything. If you're looking for exposure and investing in a franchise, we are not investment advisors, but you might wanna look at investing in different...we are not investment advisors, but you might wanna look at getting exposure and investing in publicly traded franchises, where you truly are not doing anything, and it's money that's in different publicly traded franchise stocks and you do not have to review any financials…
So, in terms of passive income franchises, there are none. If you're looking to have passive income generated by franchises, there are franchisors that are publicly traded, there are multi-unit and multi-brand, even, franchisees that you can also purchase their stocks, and that would be more of a passive income franchise. And in terms of semi-absentee, a lot of people in the franchise arena describe a semi-absentee opportunity where you're not working day-to-day in the business, and you generally would have a day-to-day manager that's responsible for marketing, sales, client service, the general operations, day-to-day communications with the franchisor themselves, training employees, etc.
Where the semi-absentee franchise owner might be more responsible for making sure the bi-monthly payroll works all right, and checking the financial numbers, going over the financials and strategy with the day-to-day manager, filling in for the day-to-day manager if he or she is sick, those are some of the responsibilities for a semi-absentee franchise owner. Now, that being said, we see semi-absentee franchise owners still working anywhere from 5 to 20 hours a week. And it's a type of role that you still have to be expected from time to time to roll up your sleeves.
Unless it's a very sizable business and your franchise location is doing over a million dollars in sales, or you have multiple locations where you have a regional manager you're paying $80,000-$90,000 a year, that's able to handle not just the marketing, sales, general operations, but also the back-office functions, and you're really just sitting back and just working, you know, 1 hour a week, a couple hours a week.
That being said, there are some options available where again, these are for higher investment amounts, generally over a $200,000 investment, where there's enough margin for a day-to-day operator, as well as you can even have an agreement with the franchisor where they're managing some of the day-to-day functions, and you could work as little as 1 or 2 hours a month.
However, these opportunities are generally for businesses that are already up and operating, or they're for high margin businesses where the franchisor is very confident in what they're able to do, and maybe it's a smaller franchise system that's able to be a little more actively involved with those 2 investors that are looking to make an investment in a business that they own a majority stake, generally 100% of the business, but that the franchisor would be working...be responsible for supporting that day-to-day manager, and really be much more hands-on than a typical franchisor that's providing support with the branding, negotiating with lenders, with the vendors, and just negotiating with different third parties to help the franchisee, and generally, franchisors are not getting as involved with the day-to-day operations of the business.
So, under $150k, you can really expect to work full-time in the business, 40, 50, 60 hours a week for the first 12 to 18 months. If you're willing to invest between $150k and $200k from day 1, there might be an opportunity to have a full-time manager in place without investing additional capital but profits will be low for the first year as the business scales up.
Learn more here: bit.ly/2Ra8edA semi absentee

[@williamaston3648]

Thanks for the video! Finally a franchise advisor not trying to sell me

[@Vettedbiz]

Glad I could help!

[@eflex247]

I couldn’t agree more

[@tobiagutobiagu]

excelent!! as usual!!

[@Vettedbiz]

Thank you! Cheers!

[@TriNgoMBA]

With $500000 and want semi absentee in Texas, what industry do you think to join. Investor have real estate tax insurance background.

[@Vettedbiz]

Tough to say without knowing more. Might be a good idea to contact a franchise broker to review opportunities.

[@StephenAKatz]

Instead of babbling on in generalities, why don't you name specific franchises, and describe how involved the franchise owner has to be in the operation, and why, I notice that you provide no distinctions regarding the type of franchise (fast-food? beauty salon)--you just babble on about franchises in general.

[@Vettedbiz]

Thanks for your comment. I suggest you watch some of the interviews with existing franchisees that provide in depth details on involvement, income, etc.