A Day in the Life of a Franchise Owner
According to an analysis of US Census Bureau data, roughly 5% of US businesses with employees are franchises. Franchises can be found in a wide variety of industries like restaurants, hotels, retail, and more. In fact, many of the U.S.’s most popular brands are franchise-owned businesses.
Many people consider buying a franchise instead of starting a separate business. But it can be hard to know what a day in the life of a franchise owner looks like. Let’s explore what the daily responsibilities and schedule of a franchise owner entail.
What is a Franchise?
Before we dive into the typical responsibilities of a franchise owner, it’s important to understand what they are. Franchises, such as chain restaurants and gas stations, include several locations that are part of a single entity. A unique aspect of franchises is that their locations have individual owners who run their businesses and receive payments and reimbursements from the overarching companies. The owner of a franchise, or franchisee, buys the franchise and is able to use the larger company’s business model and likeness to run their own location of that business.
A Day in the Life of a Franchise Owner Depends on Their Ownership
Many people ask, “What is a franchise?” when they really mean, “What does it mean to own a franchise?” This answer depends on the type of ownership you pursue. Let’s take a look at three of the types of ownership you can expect.
Executive/Absentee Ownership
First, there is executive/absentee ownership. This model is for those looking solely for an investment opportunity. Executive or absentee ownership does not get involved in a location’s day-to-day operations and focuses on taking a backseat management approach, with hired staff handling all the functions.
As such, this style of ownership requires minimal industry knowledge and the least time commitment while allowing for an opportunity to scale since you can manage numerous locations at once. However, this style requires a higher cost to find and retain the right employees to run your business.
Semi-absentee Ownership
Next, there is semi-absentee ownership. This model allows you to start and run a business while also maintaining another job or obligation. Generally, semi-absentee ownership requires 10 to 15 hours weekly, allowing owners to pursue other opportunities while also running a successful business.
You may wonder if it’s possible to run a semi-absentee business. The most critical factor in this question is the structure of your franchise. Some franchise businesses require hands-on ownership and management. In these instances, running a location as a semi-absent owner becomes difficult. However, a less top-down business structure can make this system work.
Full-time Ownership
Lastly, many franchise businesses require full-time ownership. This model generally requires at least 40 hours of work weekly of hands-on day-to-day management of the business’s daily operations.
The rest of this article will focus on the schedule of full-time owners. Continue reading to learn about the daily task of a franchise owner.
Getting Into a Full-Time Franchise Deal
Several franchises exist, each of which falls into different industries. One of the most common types is a restaurant chain. To give you an idea of how to get into a franchise, we’ll use Rib & Chop House as an example.
At Rib & Chop House, our franchise owners will run a restaurant that sits on roughly 6,000 square feet of space. Our franchise owners can decorate their properties with local art to make people feel more at home. We will provide guidance and direction to help you find the best location for your franchise building. You can also use our design and build-out specs to create the best space for your restaurant and bar. Once this is done, we’ll support you with a development team that remains at your location for three weeks. This way, you can feel confident and supported as your business opens.
Our franchise owners usually provide an initial investment that ranges between $1,970,000-$2,908,700 and our initial franchise fee is significantly lower, falling around $50,000.
In return, owners can receive a significant income as they lead their franchise location to financial success. Likewise, you don’t have to go through this process alone. Instead, our company provides a training team to ensure you have the necessary skill set to run your franchise location. Then, you’ll undergo six weeks of classroom and in-restaurant training for you and your investment partners.
Announce Your Grand Opening
Once you purchase your franchise location, it’s time to announce a grand opening (or re-opening). Your grand opening can be one of the most exciting times for your business.
Most grand openings are your community’s first experience of your business. Likewise, it’s the time when people will be most curious about your work. As a franchise owner, be sure to engage with your community and thank those who attend to show your appreciation and gratitude. Support from your community when opening a franchise is vital to your success, so it’s important to also share this information with your staff as well.
As a result, this period will often be a hectic time for you and your staff. You’ll likely be busy trying to attend to your customers at one time. These occasions allow you to build new relationships with other businesses to market your location.
These occasions often feel overwhelming to those who own a franchise. However, try to enjoy this time! It’s a once-in-a-lifetime opportunity for your business to entrench itself in your community. Grand openings can boost your business’s popularity for days or weeks, and from there, you can focus on adjusting to daily operations.
Become a Franchise Owner at Rib & Chop House
With no risk comes no reward, and being a franchise owner is tremendously rewarding and can produce an excellent return on your investment.
If you’d like to become your own boss, consider becoming a franchise owner with us at Rib & Chop House! Our franchise owners receive top-notch aid and resources to ensure they have the skill set to run their businesses. We’ve opened 11 Rib & Chop House restaurants across the US flourishing in Montana, Wyoming, Colorado, Idaho, and Utah.
If that encourages you, don’t hesitate to contact our team! We can help you get started with our franchise process today.