Franchise Business Models Explained: Owner/Operator, Executive, and Owner/Manager

There are three types of business models. Which one is right for you?

Owner/Operator: The first type of franchise is an owner-operator model. You are the business. It’s the man in the van model. Say you’re a plumber who decides to jump ship from a plumbing company and buy a Roto-Rooter franchise. You go out and service the customers all day.

Executive (absentee): The executive model is named so because these are the types of franchise businesses that executives want to own. because You’re not going to leave your career to own the franchise. You continue doing what you’re doing. This is purely an investment strategy for the diversification of your portfolio.

Owner/Manager (semi-absentee): Where most franchises exist is this middle model, semi-passive ownership. You are involved day-to-day. Initially, you’ll be heavily involved in the business. As the business matures and grows, you can come in late, leave early, go on vacation and the business will still be operating. That’s the desire of most business owners in and out of franchising… you have a business that’s not dependent upon you being there. You’re the manager, the leader. Your staff looks to you for direction, and you’re loving what you’re doing. You want to be involved. You’re someone who doesn’t feel comfortable setting it and forgetting it. Owner/Manager is the greatest franchises available and where most sit.



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