Top 7 Passive Income Franchises (and the Risks)
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- เผยแพร่เมื่อ 26 มิ.ย. 2024
- 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
www.franchise.city/our-services
#FRANCHISECITY #PASSIVEINCOME
3:18 Service Franchise
4:14 Muti Units
6:07 Benefit
Rent from Business Owners > Managing Employees
Need help finding the best franchise or to learn more about any of the brands mentioned in the video: Franchise City brokers: www.franchise.city/our-services
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.
Yup! People looking to get rich quick don’t get it. Without hard work there’s no income, also, you’ll be prone to get scammed by a quick rich scheme
@@chgofirefighter not when you start with millions
I own single family rentals in a blue collar neighborhood. They bring me a lot of money and I make sure to rent them to people that are manual. It’s extremely passive.
@@solomons5669 can I hit you up about those rentals
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!!!
Thank you for watching!
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.
Like more info about the passive options both senior and food
Thank you for the info, I’m tucking this away as I build my net worth.
Thanks for watching!
Great info. Thank you.
Thanks for watching!
Hey can you possibly do a video on smoothies bars, like smoothie king or tropical smoothie café?
Im changing my thinking/life up a bit i find value in your channel, youve earned a new sub
Thank you for watching!
Good to be here first
Thank you
Excellent video and you hit the nail on the head at the end with the tax shelter statement. Thats all im looking for, could care less it it actually makes money.
this is for sure a great video, and I enjoyed watching ! subbed and liked ! a fellow creator~~~~
What are the 100 percent passive food franchises?
I have a question what about Bojangles franchise is it a good to own as a franchisee
how do you find a Managed Investment Arrangement company? Ay examples in California or San Diego Area specific
usually how much in revenue and net profit do those 100% passive senior care franchises do? lemme know
For the passive senior care, what’s the average average per year, and net profit per year, after putting in a 200,000 investment.
Excellent video
Thanks for watching!
I like what you said how about passive income franchise I'm a single mom wake now working 97 hours a week to trying to keep a roof and to help my family it very hard for wake now I like to find a better way how you think you can help me in this situation??
What about hotels, won't Holiday Inn, Hyatt, or Hilton, run the hotel for you?
Hey could you do an interview with Richard heart?
Hi! Im able to get a franchise in USA while im living in another country? Thanks for the great content!
Thanks for watching! Yes, there are no restrictions on business ownership for residents of other countries, however if you are not a resident there are limitations on what activities you can perform in the business. You can also apply for a visa such as the E-2, that allows the investor to reside in the USA as long as the business is in operation. Details on our E-2 program: www.franchise.city/e2-visa and our broker services: www.franchise.city/our-services
You have to do some some management answer emails phone calls dealing with us space company or their operating in the United States and its territories meeting with regulators to make sure everything's in compliant. Ensure consumer safety 100% because last thing you want is the history of lawsuits that goes on your public record.
Could you talk about the business coaching franchises in the market please.
Thanks! If you are considering a franchise we can provide reviews, comparative reports and more for any franchise: www.franchise.city/our-services No need to wait for reviews :-)
What is the name of the senior care franchise that does that?
A Better Solution in Home Care.
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
Thanks for watching!
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 summer.....
Nah that guy was much heavier :-) Shiny object syndrome is the enemy! Focus on one thing - make it happen. No business is inherently better or worse than another - but the grass always looks greener once you hit the hard parts of running any business.
Hahah, I remember that video, and even looked into to it, hows it going?
@@alhiddell6810 Just this month have been able to start learning to do it. Several castings for practice so far. A ton to learn.
@@realazduffman far out, that one idea was an interesting one, out of all them thats what I would have gone for
@@FranchiseCityOnline this is very true! I’ve learned this the hard way. Stay focused on one business with one main objective. Very easy to get distracted by a new idea.
"Laundry makes me happy" 😂😂😂😂
Very interesting information. I always learn from your videos. ATM sound really good. Out of the subject, what do you think about the other crypto currency such as Doge coin. Thank you for sharing
Thanks Hassan! TH-cam put you in spam I guess they dont like Doge :-) Hard to say where that coin will end up tbh. It was mostly a meme coin created as a joke but when Elon tweets stuff goes up. Maybe it keeps going up but for me too risky. I only hold relatively small amounts of BTC, XRP and ETH which I am not afraid to lose.
@@FranchiseCityOnline If this dude bought XRP i know he is smart ;)
Dogecoin is a meme, will be worthless once its popularity dies. Devs abandoned it, loses value over time(inflationary). You need to do A LOT more research on crypto dude.
How can I get more information on the supermarket water filtration investment opportunities? You really didn’t say much about it in this video you mentioned it for a few seconds. Please direct me in a direction to learn more about it.
If I said "Call Franchise City" any more in this video I would get a spamming ticket :-) Your broker will help you determine if available in your area, help you vet the concept, and if appropriate advise you of potential alternatives. www.franchise.city/our-services Thanks for watching!
@@FranchiseCityOnline ok
@@FranchiseCityOnline My broker still hasn’t contacted me I filled out the online form from the website about 5 days ago.
@@HardwoodFloorRefinishing Thanks for following up. I see in the file Shari S contacted you by email on the 21st. and had spoken with you on the 15th of Dec. Pls. check junk folder and Ill follow up with her again to notify email was not received.
@@FranchiseCityOnline ok thanks I did receive an email on the 21st of this month from franchise city saying someone will contact me shortly but haven’t received a contact from that. And yes last year December I spoke with someone that was before I watch this new video.
Is the beauty mall concept a franchise? Or is this just DIY?
Thanks for the question. many of them are franchised, some are independent operators. If you would like to take a look at what is available and compare the options feel free to give us a call. www.franchise.city/our-services
No company names of these franchises were mentioned
Thanks for saving my time
Thoughts on kidney dialysis centre franchises like DaVita?
Depends on a lot of factors - no single franchise is the best option for every operator and their city. If you need help determining which franchise would be best feel free to call Franchise City brokers: www.franchise.city/our-services. Thanks for the question!
Can you do a video on day trading on the stock market?
What is the name of the Senior care franchise that is 100% passive?
To learn more about any of the franchises in the video and check if your territory is available feel free to contact Franchise City brokers: www.franchise.city/our-services
you never gave an example of the food franchise
What's the name of the senior care franchise?
To inquire on any franchises: www.franchise.city/franchise-inquiry Thank you for watching.
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?
Raising your income to $100,000 - and save half of what you make. Once you have acquired enough for net worth and down payment, then find the right franchise for you, and apply for SBA loan.
OR get married to a high earner - (and still do the above) that’s what I did. I’m 37, and have finally gotten to the point where it’s possible for me, but I also didn’t set out on this path deliberately.
Tech Sales or Product Management is probably the best route to a high paying career - find a tech boot camp and get certified, then go to a consulting company, get traction that way.
Upgrade your income or downgrade your living situation. Look into a tiny home so the majority of your income can be used to grow wealth.
How could you talk about franchising a H&R BLOCK?
I’m lost. He went through different definitions just to jump into salons. So is that all Passive? I though he was going to give actual brands.
Thanks for the comment. The majority of hair salons are "semi-passive" meaning a somewhat flexible commitment of around 10 hrs per week. If you require additional clarification or have questions feel free to contact us: www.franchise.city/our-services
I’ve got around £105,000 at the moment. What do you all recommend?
We spend on average 20-30 hours to determine the best fit based on a persons unique skills, goals, exit strategy, local demand, demographics etc. there is no "best" franchise for every situation. Unfortunately we dont have any brokers in the UK. That said, feel free to take our free skills assessment it might help you determine types of franchises that could be suitable: www.franchise.city/zorakle Thanks for watching.
Dont watch the defidan ad. 20 min vid convincing for payment.
What can I do with $10k that will make me $90k+
Put it in the stock market, index fund and wait 30 years.
@@kedduff1814 😂😂😂
Drugs
Buy a quarter of a bitcoin and hope the value increases by 9x
You will need $100k about to make $90k +
Senior living is a terrible business to work for haha corp sux
There were a couple of comments here about theft in the hair care business (that you said has no "theft issues") and they have been removed. Why have they been removed? They are the truth. Don't censor facts or important information.
I have friends who own, and have owned, hair care and nail salons, and there can be plenty of theft if an owner is not careful controlling it.
Deleted because the entire thread denigrated into racist tirades against salons in certain neighborhoods. The point being made is that theft proportionately, at least in the franchises we represent, is infinitely smaller than other options, and easier to control (employee vs customer theft) Obviously if an owner is not diligent controlling theft it will happen regardless of the industry, but certain industries are easier to monitor inventory than others.
@@FranchiseCityOnline There were no racist issues in any of the comments. Perhaps you can tell me exactly what part of the comments were racist? Accusing people of being racist, who have displayed no racism, actually makes you the racist...or you can;t comprehend that statement? Are you one of those Leftys who sees racism all around you, even though it doesn't exist? Virtue signaling only appeases other virtue signalers, the other 99% of the population just rolls their eyes at such nonsense.
Don't be a zeitgeist lemming, think for yourself.
"Racist" is just a lame excuse to censor comments that didn't fit your narrative, which is that you are here to sell businesses to make a profit, and nothing more.
All of my side of the comment exchange were true, and factual. You said "no theft" in the business. That is a lie. I have had friends in the business over the years, and there is theft, and it is not the customers who are the real problem. Yes it can be controlled, but you said "no theft". You don't mention "no theft" in other businesses you sell here, why this particular business?
Are you going to censor this comment too?
"Censorship reflects a society's lack of confidence in itself. It is the hallmark of an authoritarian regime"
- Justice Potter Stewart
Didn't like the video. You made the title like it was a list, and after watching I couldn't tell you what the 7 items were.
There is more to the story than just "a list" including warnings of how many allegedly passive businesses are not passive.
Semi passive 10 hrs week: salons/beauty/massage/salon suites/beauty malls and laundry.
Semi passive if flexible job (as hire is critical) fitness - esp yoga and martial arts (lower eqpt costs)
100% passive - senior care (one brand) and food managed model (specific brand)
Also Bitcoin ATM/s and commercial retail water filtration.
@@FranchiseCityOnline Appreciate the response!
@@FranchiseCityOnline how can i find out those brands
@@notinuse9316 Just give us a call or email: You can learn about how we can help here: www.franchise.city/our-services 800-432-1583 .
that senior care portion looked like it was about to turn into some kinda GILF ON MILF action
He said boomers turning 65
Boomers aren't turning 65?
@@FranchiseCityOnline lol I just thought it was funny that you said “boomers”.
@@jackiechan3599 Wait til I cover doomers and coomers :-)
Bitcoin is the feature investing in it now is the wisest thing to do now especially the current rise
despite all the economic crisis this is the right time to start up an investment
Stocks are good but crypto is more profitable
What about now with the $10k drop?
Hmm not really
Gyms? Ummm, Covid?
My city lost probably 5-6 small gyms. CrossFit, Boxing, Karate etc
Waste of time
Why?
Would like to know if you own a passive income business and how you run it