Updated January, 2025
When it comes to owning a franchise in Canada, there are various models to choose from.
- A traditional owner-operator franchise model is when the franchisee is involved in managing the franchisor’s daily operations. It requires a full-time commitment from franchisees to run the business.
- A fully absentee model means that the franchisee delegates all management responsibilities and plays little to no active role in the day-to-day operations of the business.
- A semi-absentee franchise model is when the franchisee takes a part-time or limited role in the business’s operations. The franchisee is not entirely “hands-off” like with a fully absentee model, but they are also not deeply involved in daily operations.
Owning a semi-absentee franchise doesn’t mean you get to sip piña coladas on some tropical beach while the money flows into your account. However, it is a business opportunity that requires less of a time commitment, allowing you to attend to other obligations.
How Does a Semi-Absentee Franchise Work?
While owners of a semi-absentee franchise oversee high-level decisions and business performance, they will delegate the daily management of the franchise to hired staff. The time commitment for a Canadian semi-absentee franchise owner varies, but it will likely be around 10-20 hours per week. Factors that impact the time required include:
- Industry and its operational complexity
- Competence of the hired manager and staff
- Franchisee’s experience level with running a business
Who Should Consider a Semi-Absentee Franchise?
A semi-absentee franchise is not for everyone, but it is particularly well-suited for the following people:
- Individuals with existing careers or businesses
- Investors looking for passive income opportunities
- People transitioning to entrepreneurship without full-time involvement
3 Advantages of Semi-Absentee Franchises
#1 – Work-Life Balance
A semi-absentee franchise has a much lower time commitment compared to full-time franchises. Even if you don’t intend to work a day job while running your franchise, the ability to work only 10-20 hours per week means more time for family and pursuing other interests and hobbies.
#2 – Franchise Expansion
A semi-absentee franchise owner might decide to purchase multiple franchise units and oversee their growth. For entrepreneurs who have dreams of building a large business empire, semi-absentee franchising is an appealing option.
#3 – Less Financial Stress
While a semi-absentee franchise has the added expense of hiring a team to run the business, the model also relieves some of the financial anxiety that’s typical with owning a business.
Semi-absentee franchise owners can do a few things:
- Grow the business at their own pace while relying on their day job to provide their mortgage payment and grocery money
- Use their day job as a “safety net” so they can focus their energy on building the business rather than working in the business
- Pursue other interests or careers, giving them the ability to diversify their income streams
3 Challenges of Semi-Absentee Franchises
#1 – Dependent on Management Staff
The management staff is key to running a semi-absentee franchise. While this can be a huge asset, it can also be a challenge if the individuals you’re relying on are not doing their job effectively.
#2 – Skills Required
While a semi-absentee franchise owner is able to delegate the difficult task of managing a business to qualified individuals, there is still a need for the franchisee to have strong communication and oversight skills.
#3 – Striking a Balance
With both the traditional owner-operator and fully absentee franchise models, it’s either one or the other: full-time involvement or 100% delegation. However, with a semi-absentee model, the franchisee must strike a balance between involvement and delegation in order to achieve all of the benefits of this model.
Is a Semi-Absentee Franchise Right for You?
Are you thinking about purchasing a semi-absentee franchise in Canada? Reach out to FranNet to work with an experienced franchise consultant. FranNet Canada is proud to represent a wide range of semi-absentee franchises. We will evaluate your specific needs and skill sets and match you with the best franchise opportunity. Schedule your free consultation today!