If you’ve been reading this blog for a while, you may have noticed that we post a lot about executive-model franchising. We like to say that this form of franchising requires you to work on, not in, the business. Instead of operating a franchise day-to-day, executive-model franchisees focus on big-picture concerns such as strategy, “managing the manager,” and growth.
Executive-model franchising isn’t the right fit for everyone. Some franchise owners, for instance, want the experience of running day-to-day operations in their own business. At The Empowered Franchisee, however, executive franchising is our preferred method to recommend. Here’s why.
Executive-model franchising delivers a bigger payoff.
Executive franchisees typically sign a multi-unit contract with the franchisor. This type of arrangement usually requires the franchisee to open at least two locations immediately and several more over the next few years. Some executive franchisees become area developers, a special type of multi-unit ownership that includes additional responsibilities and rewards.
In other words, executive ownership is a big responsibility. But as you might expect, with big responsibility comes the potential for big reward. Executive-model franchising offers the greatest wealth-building potential, with economies of scale on the cost side and compounding growth on the profit side. As billionaire franchise owner Dan Rowe says, “When someone buys a single unit franchise, they’ve bought themselves a job, but when someone becomes a multi-unit franchise operator, they’ve built themselves an empire.”
Executive-model franchising is more rewarding.
In executive-model franchising, everything is scaled up: the size of your business, the wealth you can build, and the sense of fulfillment you can experience. As an executive franchisee, you have more employees, which means more opportunities to mentor people and make a difference in their lives. With more locations, you gain more chances to make a positive impact on the surrounding community. Your own opportunities for growth increase, too, as you tackle bigger challenges and new experiences. So executive franchising isn’t just about a bigger financial reward–it’s also about a stronger sense of satisfaction in your work.
Executive-model franchising offers more flexibility.
When someone leaves a conventional job to become a franchise owner-operator, they still experience the satisfaction of becoming their own boss. But they essentially trade one full-time job for another. Especially if they purchase a brick-and-mortar franchise, they still have to be at work all day, every day.
Executive-model franchising, however, offers considerably more freedom. Though you may have to devote significant attention to your business during the launch phase, you’ll quickly reach a point where you can step back and let your manager(s) run things day-to-day. In fact, a smoothly running executive-model franchise business usually requires only 8-10 hours per week of the owner’s time–but still generates a significant income.
With such a low time commitment, executive-model franchising offers maximum flexibility for your schedule and lifestyle. You can use it as a way to gain more time for yourself, stay mentally and socially engaged during retirement, or even increase your income without leaving your day job.
Executive-model franchising fits our business
Before I became a franchise consultant, I was a successful franchise owner. As an area developer for a salon suites franchisor, I worked with two business partners to establish and run a highly successful six-unit executive franchise business. So I know executive franchising, inside and out.
I was so successful at executive franchising because I came to the industry with more than 20 years’ experience as a corporate executive. Most of our candidates at The Empowered Franchisee have a similar background. We like to recommend executive-model franchising for these candidates because it requires similar skills to corporate leadership. That makes the transition to entrepreneurship easier and helps increase the franchisee’s odds of success.
At the end of the day, though, we just want to help our candidates find their franchise fit–whether that’s executive ownership or something else. If that’s what you want, too, book some time with one of us today. You can get started on your journey to franchise ownership with just a 20-minute call.
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