Entrepreneurship & Small Business

best franchise to run on the side

  • Last Updated:
  • Sep 10th, 2017 10:34 pm
[OP]
Newbie
Mar 16, 2014
17 posts
Toronto

best franchise to run on the side

looking at opening a franchise as a revenue stream on top of more traditional investment portfolio for a couple reasons

have a full time job already, looking for something relatively turn key, relatively liquid if need to sell; would be hiring a manager to run the place; willing to put in the research initially etc but beyond that less input from myself the better

when I read the typical franchise websites don't see a lot for this type of setup, but surely this must be somewhat common?

thinking about 1M capital for startup; if needed could likely convince one or two others with similar capital

would a well established chain make it easier to find employees with managerial experience?
4 replies
Deal Guru
Aug 2, 2001
13886 posts
4446 upvotes
Why wouldn't you look into a partnership agreement with someone who is willing to run the store? The problem you run into is that you will not find someone as good if they have no skin in the game. With the type of business you are referring to you are dealing with minimum wage employees, which are among the most unreliable there are.

This will also help with your problem that many chains will not allow you to purchase a franchise if you plan to be hands off.
Deal Addict
User avatar
Dec 3, 2009
4633 posts
419 upvotes
Toronto
I agree with the first reply that it'd be better to partner with a manager doing hands on work.
tdiddy23 wrote:
Sep 10th, 2017 12:16 am
would a well established chain make it easier to find employees with managerial experience?
I'd say the opposite or perhaps might not make a difference at all. Good managers know the most established chains will expect them to operate the business on a shoestring. A setup that will only make them look bad and have a lot less control over the franchise operations to make the place better.
Remember to be an RFD-er and NOT a degenerate.
[OP]
Newbie
Mar 16, 2014
17 posts
Toronto
Yes when the time comes if I could find someone to partner with that would be ideal. Maybe even someone who could put in 20%, or get paid a share of profit and then ideally buy me out eventually. Not sure how realistic it would be to find someone, but you're right doesn't seem there are many easy options for absentee owner otherwise. From a few listing websites recommended on here I found dogtopia and sports clips that advertise "semi-absentee" franchisee; couple articles on the subject including Washington Post but hands off franchise doesn't seem to be as big in Canada I guess?
Deal Guru
Aug 2, 2001
13886 posts
4446 upvotes
tdiddy23 wrote:
Sep 10th, 2017 6:22 pm
Yes when the time comes if I could find someone to partner with that would be ideal. Maybe even someone who could put in 20%, or get paid a share of profit and then ideally buy me out eventually. Not sure how realistic it would be to find someone, but you're right doesn't seem there are many easy options for absentee owner otherwise. From a few listing websites recommended on here I found dogtopia and sports clips that advertise "semi-absentee" franchisee; couple articles on the subject including Washington Post but hands off franchise doesn't seem to be as big in Canada I guess?
You could also offer a profit sharing structure. Many believe that this will generally inspire people to make profit-driven decisions.

Think of this from the point of view of the parent company - why would they want owners who do not want to be involved in the business? There is a lot of capital floating around for proven businesses. If you could simply invest $1,000,000 and get a fully running franchise where you just show up to the Christmas party why would they even need franchisees?

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