Retiring from a successful career often signals a shift from a robust professional life to a more relaxed period of retirement. For many retirees, this transition can be filled with an unfamiliar blend of emotions from excitement to mild apprehension. But for those who have something new and engaging lined up and are looking to stay active and engaged, franchises can offer a great alternative. Deciding which franchise to ultimately buy and figuring out how to best operate it is where things can become complicated which is why International Franchise Professionals Group (IFPG) is here to help. Here are the answers to some of the frequently asked questions about determining the best semi-absentee franchise for prospective retirees.
What is a Semi-Absentee Franchise?
A semi-absentee franchise is a type of established business ownership that allows you to have a passive ownership position but still remain involved in various areas of the franchise. Typically, semi-absentee franchises allow investors to maintain a certain amount of control over different facets of the business while providing opportunities for another individual to manage the day-to-day operations.
What Factors Should Retirees Consider When Choosing a Franchise?
In 2020, there were close to 3,700 established franchisors, offering more than half a million franchise units in the United States alone. When considering which franchise to choose, it is important for retirees to consider their goals and what factors best align with them. Some factors to consider include initial investments, potential earnings, involvement in daily operations, business type and location. A franchisor or franchisee should be able to answer questions to help an individual decide which franchise can directly align with their goals and abilities.
What is the Best Type of Franchise for Retirees?
When evaluating the best type of franchise for retirees, it is important to review the franchise opportunities that best aligns with the individual’s financial goals, industry experience, available management and the amount of involvement desired. Some of the best franchise investments for retirees are in food, real estate and service industries, such as home improvements, fitness, travel and restaurants.
How Does a Retiree Manage a Franchise?
The best way for a retiree to manage a franchise is to focus on the growth and profitability of their business choice. In many cases, start-up processes involve working closely with franchisors to select the right location, manage the hiring process and train employees, as well as create marketing plans and strategies. Offering a franchisor with a combination of knowledge, experience and commitment, a retiree can go on to have a successful franchise model.
Are There Any Benefits to Investing in a Semi-Absentee Franchise?
Yes, semi-absentee franchises offer many benefits. The advantage of semi-absentee franchises is they provide flexibility to their owners, allowing retirees to still have some control over key decisions while others handle the day-to-day activities. Another advantage of semi-absentee franchise models is the growth potential. With the same support and systems offered to an owner, it may be easier to scale a semi-absentee franchise model and have better growth opportunities than a fully-owned business.