Top 7 Passive Income Franchises (and the Risks)

Are there options in franchising for creating 100% passive income? Yes, but not many. If you have 10 hours a week available certain franchises allow for "semi-passive" ownership, which is much easier to find. We'll look at passive investment franchises and how much you will need to invest today on Franchise City
TYPES OF PASSIVE OPERATION:
1. 100% Passive Investment franchises: Completely passive, where the owner has absolutely no involvement in the business, and the franchise company co-ordinates all business operations. This is rare, and this is a completely hands off situation, same as owning a stock, and there are very, very few of these.
2. Passive allowed - most franchises do refer to this as "passive" operation, but the owner is in fact responsible for setting up the business. The problem with this model is if you are responsible for hiring someone to run your business and they don't work out, or the second, third and fourth manager all quit or you cant find someone, that supposedly passive business is now not so passive. This is the biggest problem we see where new owners don't consider worst case scenarios. If you have a job that is not flexible, or another business that requires your time, and your manager quits, and the franchise remains closed, meaning you don't go out there and open it, you could be in contravention of the terms of the contract and can potentially lose your franchise.
3. The most prevalent is the semi passive, or manager run model, where the owner invests maybe 10 hours a week overseeing the business from a high level.
If you have a flexible job or business and can commit around 10 hours a week a hair salon, beauty shop, or massage or spa franchise can be a good fit. Your own market demand and demographic needs to be considered, if you need help determining what might make sense in your city give your Franchise City broker a call. But what makes hair, beauty, and massage a good option for passive? 1. You are dealing with a service, not a product like food, so no potential for theft or spoilage, and that additional responsibility of inventory management is nonexistent. 2. The business model is simple, people walk in they sit down, they get the service, they leave and the quality of your manager is not as critical as for example a gym, where your manager needs to have very specific skills to grow the business. Your salon manager doesn't need to be good at "selling" a haircut, but if your gym manager is bad at sales or customer service your bottom line will suffer. Gyms can be good, depending on your situation. You don't make much money owning a single salon, so the strategy is multi unit ownership. Most people start their first franchise while still working, and eventually leave their job once they built multi units. In one one of the biggest National chains the average franchisee owns 6 salons. Now very important with big chains is to make sure there is territory expansion availability in the region. If you have no room for expansion your growth is limited and it can make sense to join a smaller emerging franchise system with contiguous territory availability. Again no right or wrong answer your franchise city broker can help. Investment for your first salon ranges from about $160,000 and up, SBA financing available with about 30% down and each franchise has their own minimum net worth requirement averaging around $300k and up. There are also specialty beauty concepts available that show an average EBITDA of over $100,000 per location.
Another interesting option for semi passive is a salon studio, or beauty mall. This is a higher investment but can generate more money than a single salon. In this scenario you open a large footprint location, build out multiple smaller beauty suites within the location, and then rent those suites to individual beauty technicians who want to run their own business. So this location becomes an upscale local beauty destination and you might have nail technicians, hair stylists, lashes, facials, any type of beauty service. The benefit of this model is it's really a real estate play, you are receiving rent from business owners vs managing employees. Realistically you'll still need 10-12 hours a week to run the suites, and your total investment will depend on the size of the location and your cities real estate costs -$300k to over a million for larger locations, again financing available with about 30% down.
There are also completely passive income businesses like Bitcoin ATM's, or supermarket water filtration units, where the investor provides the capital, and the company deploys, manages and if needed repairs the units.You can even check the status of your business on your computer or mobile device. Investment at the low end about $50,000 depending on how many units are being purchased.
NEED HELP FINDING A PASSIVE INCOME FRANCHISE? CALL FRANCHISE CITY BROKERS
#FRANCHISECITY #PASSIVEINCOME

[Jferrari]

It’s nearly impossible to make millions in anything that’s truly passive. Semi-passive is realistic if you have the right people in the right seats.

[franchisehotseats]

Great info! Used to be NO passive opportunities in franchising but times have changed. What hasn’t changed - compatibility with franchising. It’s not for everyone. Make sure it’s for you.

[karapendleton]

I am so glad you covered this topic!!! I have some medical issues I'm dealing with so totally hands- on wouldn't work for me. That being said, I'd like to know the different rolls well enough to either be able to fill in in a pinch or make sure hiring/training is going well. Tons of valuable information in this video, as always. Thanks so much. Keep up the great work!!!

[BossChronicles]

Like more info about the passive options both senior and food

[DB]

What are the 100 percent passive food franchises?

[bbkg]

Thank you for the info, I’m tucking this away as I build my net worth.

[MT-etfc]

What is the name of the senior care franchise that does that?

[ricolove]

Your like the Alex Jones of Business Financial, I hope Jealous Globalist don't go after you. Your information is a great Value. Thank you

[DrumNBassKidd]

Im changing my thinking/life up a bit i find value in your channel, youve earned a new sub

[andygainzwonderfuladventur]

Which ahome Care franchise has the passive model?

[bodyloverz]

What about hotels, won't Holiday Inn, Hyatt, or Hilton, run the hotel for you?

[arafrahman]

usually how much in revenue and net profit do those 100% passive senior care franchises do? lemme know

[lazericross]

I have a question what about Bojangles franchise is it a good to own as a franchisee

[arafrahman]

For the passive senior care, what’s the average average per year, and net profit per year, after putting in a 200, 000 investment.

[realazduffman]

The bitcoin ATM is interesting but my free time is tied up trying to figure out concrete castings that some dude that looks like you mentioned last

[ricolove]

how do you find a Managed Investment Arrangement company? Ay examples in California or San Diego Area specific

[Tmais_]

Hey can you possibly do a video on smoothies bars, like smoothie king or tropical smoothie café?

[Hauness]

I'm 26 years old and make less than $50, 000 a year. How do I get to this level? What is my first step? What do I need to be trying to accomplish?

[yasinnabi]

this is for sure a great video, and I enjoyed watching ! subbed and liked ! a fellow creator~~~~

[saibushayer]

No company names of these franchises were mentioned