Can I own a franchise without running it day to day?

A franchise is not a regular small business, because the franchisor sets many of the rules. Whether an owner may step back is one of them. Some systems are built around an owner who is present, and others welcome investors who hire a manager. Do not assume. Find out before you commit, and get the answer in writing.

Ask the franchisor first

Put the question plainly: is a non-operating owner allowed, and what conditions apply? Ask whether a manager may run the location in your place, who approves that person and what training they must finish. Ask what the franchisor expects of the owner each month even with a manager in place. Different brands answer differently, so a general claim about franchises will not help you here.

What to look for in the agreement

Read the sections on owner involvement, designated or approved managers, training and transfers. Notice any wording about personal supervision of the business. Have your lawyer review the whole agreement before you sign, since the terms bind you for a long time. How owning a franchise works explains the relationship in more detail.

Talk to current franchisees

Franchisees who already run a location can tell you what the job takes. Ask how many hours they work, whether any owners use a manager and how that has gone. Speak to some the franchisor did not suggest, if you can find them. Their stories show the gap between the sales pitch and the week-to-week reality.

• Is a non-operating owner permitted?
• Who approves a manager, and what training do they need?
• What is the owner expected to do each month?
• How do current owners spend their time?