Can Franchising Be a Side Hustle?

 

Your first impression of a franchise owner may be that they are full-time employees who put in a lot of manual labor. Although it might be the case for some franchisees, this isn't always the case.

Franchisees can select the type of franchise ownership model they want to pursue based on the franchise system. While some options require a greater time commitment and active participation in daily activities, others align with a more hands-off, more involved approach. This entails that you can assume the title of franchise owner without assuming the substantial obligations that frequently accompany it.

It is possible for franchising to be your side business if you are currently pursuing a career and do not want to change directions, if you want to make passive income while maintaining your current lifestyle, if you are looking toward retirement and want to have additional income set aside, or if you are looking to generate passive income while maintaining your current lifestyle.

 

What is Side Hustle?

The term "side hustle" refers to a much more flexible and unrelated job that you do in addition to your primary employment. It's not intended to take the place of your primary job's duties or demand as much time and effort. Some people engage in side businesses that generate passive income, which is money that is earned without active effort on the part of the earner.

Details about which franchise ownership structures make it possible to pursue this endeavor as a side business are provided below, along with a number of advantages of making this choice.

 

Absentee and Semi-Absentee Ownership Models

The semi-absentee and absentee ownership models are similar in concept but differ slightly. A franchisee who opts for a semi-absentee model will continue to be actively involved in some business decisions and location operations. The day-to-day operations are not, however, handled by them. Instead, a manager would assume this responsibility along with a group of workers, with periodic check-ins from the franchisee.

An absentee franchisee doesn't participate in any aspect of the business' daily operations. As a result, the franchise location will be managed by a manager and a team of employees who will also make business decisions, manage vendor relationships, and perform other management-related tasks.

Your choice of model will depend on how involved you want to be. A semi-absentee franchise model may be a wise choice if your current career or way of life allows for some involvement, particularly if you want to experience some aspects of being a franchise owner. The absentee model is recommended if you want to make a passive income without having to put any effort into it.

 

The Benefits of Franchising as a Side Hustle

The tried-and-true business model that franchisees use is one advantage of going into franchising as a side business or generally. When you sign a franchise agreement, you are stepping into a company that has already completed the more challenging stages of starting a company from scratch.

You receive a substantial amount of training and support that, for instance, those starting a start-up might not have at the beginning of their business venture. 

You take the most advantageous approach possible by adhering to a plan that has been shown to work. This may appeal to people looking for a side business with the potential to be very successful.

It is significant to remember that every franchise location needs work, focus, and time to succeed. Still, those who want to use franchising as a side business can carefully choose a group of workers who have the drive to achieve success. 

Because franchise owners who pursue a semi-absentee or absentee model are relying on their team to manage their location, special care should be taken when selecting a team that matches your ideal criteria for running a successful company.

Another benefit of pursuing franchising as a side hustle is the opportunity for passive income. Choosing an absentee model is necessary for this. Nevertheless, it is possible to make money month after month without having to give it much ongoing attention. 

This is particularly useful for people who want to build their retirement portfolio and want to go with an absentee model now and increase involvement later.