Many franchisors require you as the franchisee to “actively participate in the business” but some allow you to hire a designated person to manage the day to day business. Often times, the designated manager will be required to participate in training and/or be approved by the franchisor. But how do you decide whether to manage the business yourself or hire someone?
Well, the decision should be based on several factors and requires some self-reflection. First, you will want to make sure the franchise is a good fit and would allow you to still be successful while being an absentee-business owner. Second, you should think about the reasons you want to purchase the franchise. If you are buying a franchise to create a new opportunity or job for yourself then you will likely want to manage the business. If you are buying a franchise in order to provide job security for your spouse or child, then designating that person as the manager may make more sense, as long as they are qualified for the position. Or maybe you are planning on keeping your day job and are wanting to buy a franchise as a way to supplement your income and you will not have the time to manage the business yourself. Whatever the reason may be, if you are wanting to hire a business manager, you will want to make sure that he or she is experienced, trustworthy and capable of doing the job because your business’ success is tied to that of your designated manager. Here are some tips for deciding whether you should hire a business manager or not:
- Determine whether you intend for the franchise to be your full time job or whether you are more interested in having a passive role.
- Determine your comfort level with allowing someone else to control the day-to-day management of the business.
- Delve into the actual reasons you want to purchase the franchise and whether hiring a business manager aligns with those reasons.
It is also important to remember that buying a franchise, like any business decision, is a risk and is a time consuming endeavor and owning a franchise while working a full time job is no exception and can even be more difficult in some cases. If you feel that you are not willing or able to actively participate in the franchise, then perhaps purchasing a franchise is not the right opportunity for you. With that said, it is not an impossible task and there are franchisees who are successful while being absentee-franchise owners and it ultimately comes down to finding the right franchise, hiring the right manager and making an informed decision.