How to Successfully Run 20+ Franchise Locations Semi-Absentee: A Proven System
Franchise ownership can be incredibly appealing, especially when the term semi-absentee ownership is thrown around. Who wouldn’t want to keep their full-time job, while also owning a cash-flowing business that someone else manages? It’s a dream for many, but it’s not always as simple as it sounds.
In this post, we’ll dive into the semi-absentee model and explain how Ryan, a franchisee with over 20 years of experience across multiple brands, built a system to run 20+ franchise locations with minimal hands-on time. He shares his journey from being a first-time business owner to running a network of franchises with just a few hours of oversight each month.
What Is Semi-Absentee Ownership?
Semi-absentee ownership, also referred to as manager-led or executive ownership, is the idea that you can own a franchise that’s managed by someone else while you only need to put in part-time hours. It’s a concept that’s growing in popularity, but not all franchise brands are suitable for this model.
Ryan makes it clear that the success of semi-absentee ownership doesn’t come down to the franchise itself—it’s all about the person managing the business. "The franchise business doesn't determine if it can be run semi-absentee, the manager does," he says.
Ryan's Journey: From Owner-Operator to Semi-Absentee Franchisee
When Ryan first entered the world of franchising, he planned to be an owner-operator. He purchased three Anytime Fitness locations and dove into the entrepreneurial world with enthusiasm. However, life had other plans—his former boss offered him a partnership that forced him to step back from running his businesses day-to-day. This unexpected twist pushed him into the semi-absentee model sooner than he anticipated.
By recruiting a profit-sharing manager to handle the daily operations, Ryan was able to step away from the day-to-day and only focus on the high-level aspects of his business. After the right systems were put in place, he was only spending about an hour a month reviewing financials and checking in with his manager. This system eventually grew into four profitable locations and solidified his belief in semi-absentee ownership.
However, Ryan also experienced the downside of this model. After selling two of his locations, he didn’t properly train new managers for the remaining locations, which led to declining membership, sales, and profits. This failure was a valuable lesson: the system only works if you find the right leader.
Finding the Right Person: The "STIC" Manager
According to Ryan, the key to running a successful semi-absentee franchise comes down to one thing: the right manager. He uses the acronym STIC to remember the key traits of an ideal manager:
- S: Someone who has the skills to run the business
- T: Someone you trust
- I: Someone you can properly incentivize
- C: Someone who has the capacity to take on the responsibility
Ryan emphasizes the importance of recruiting people you’ve worked with before. He only brings in people he has a long-term history with, ensuring that they have the right blend of skills, trustworthiness, and motivation. He also highlights the need for proper incentives—you can’t expect a manager to stay motivated if they don’t see the upside of their hard work.
"Don’t be greedy," Ryan advises. Offer competitive compensation, a profit-sharing plan, and long-term incentives to keep your manager invested in the success of the business. A good manager will make the difference between thriving and struggling as a semi-absentee franchise owner.
Building a Communication System for Success
In addition to finding the right person, Ryan’s system relies on clear communication and accountability. Here are the five key strategies he uses to ensure his businesses run smoothly, even when he’s not there:
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Daily Huddle: A short meeting where the team discusses the previous day’s performance, shares best practices, and addresses challenges. While Ryan doesn’t participate in these meetings himself, his managers hold daily huddles with their teams using performance trackers.
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End-of-Day Report: Ryan receives a daily email report that includes key metrics such as new signups, sales, and missed opportunities.
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Customer and Employee Pulse: Ryan uses the Net Promoter Score (NPS) to gauge customer satisfaction and 15Five to track employee morale and engagement. These tools give him insight into how both customers and staff feel about the business.
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Monthly Reports: Managers complete a monthly report detailing what went well, what didn’t, and what their goals are for the following month. This report is reviewed before their monthly or quarterly meeting.
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Breakfast Meetings: Depending on the performance of the business, Ryan meets with his managers either monthly or quarterly for a breakfast meeting where they review financials, NPS, and growth opportunities.
The Long-Term Incentive: Retaining Great Managers
One of Ryan’s key takeaways from his experience is that compensation alone isn’t enough to retain great managers in the long run. Eventually, they’ll realize they’re doing most of the work while you’re earning a larger share of the profits.
To keep his managers invested, Ryan offers long-term incentives such as profit-sharing or a vesting schedule that allows them to share in the sale of the business after a certain number of years. In some cases, he even gives his managers equity in the business, which aligns their interests with the long-term success of the franchise.
"I prefer avoiding the complexity of vesting and just find someone who has real equity in the business," Ryan says. He’s learned the hard way that offering equity can prevent turnover and encourage managers to grow the business alongside him.
The Takeaway
Running a semi-absentee franchise successfully is more than just choosing the right brand—it’s about finding the right manager and building the systems to support them. Ryan’s system, developed over 20 years and 20+ locations, proves that it’s possible to own and operate franchise businesses with minimal involvement if you recruit the right STIC manager and put the necessary communication tools in place.
If you’re considering a semi-absentee franchise, remember that the success of the model depends on you finding the right person to run the business. It’s not about the franchise itself; it’s about the people and the systems you put in place to manage it.
So, the next time you’re evaluating a semi-absentee opportunity, ask yourself: Who’s going to manage this business for me?
