Absentee Fully Passive Franchise Investments
Buying a franchise can be completed, even more so when you require a franchise model that allows for passive ownership. That's where we can help guide you through each step and present brands to fit your lifestyle and long-term goals. With over 3,000 franchise brands in the United States today, only a handful offer entirely passive "managed model" ownership.
A "managed model" means that the franchisor's corporate office will manage the entire business for the franchisee, only requiring 2 hours per month of the franchisee's time once the business is up and running.
Some highlights of the "Managed Model" structure include:
- In addition to the traditional royalty, management fees range from an additional 4 to 5% of gross revenue
- Hosting two 1-hour calls per month with the franchisee on details of the business, KPIs, goal setting, and Q&A
- Recruiting, training, and management of the franchisees' staff
- Handles bookkeeping, payroll processing, billing, and collection of fees payable to the franchisee.
- Oversight of advertising, promotions, and marketing.
- Identification of real estate location and oversight of the build-out for brick & mortar concepts, and more.
"Managed-model" ownership does require cash investment or rollovers of IRAs/401ks, as the Small Business Association (SBA) will not fund investments for this type of ownership. Investments for a single territory start at $100k!