In this article, we will be taking a look at 15 franchises that run themselves. To skip our detailed analysis of the franchising business and its benefits, you can go take a look at 5 Franchises That Run Themselves.
Franchising is an effective way to make money off of an already-established business model while also allowing entrepreneurs and small business owners to conduct their business under a bigger name to maximize their chances of success. For both parties involved in a franchising operation, there are many benefits involved. However, entrepreneurs may have more to gain since they get an opportunity to try their hand at running a business with minimized risk. In essence, franchise owners get to enjoy the perks of having the support of an overseeing party while also being able to work primarily for themselves.
The franchising business model is popular among entrepreneurs because of several benefits. The popularity of this business model is evidenced by the fact that several renowned companies, such as McDonald's Corporation (NYSE:MCD), The Wendy's Company (NASDAQ:WEN), and Dunkin Brands Group Inc. (NASDAQ:DNKN), all operate on a franchise model. This popularity is increased among those members of the business community who want to benefit from a stable source of passive income as well. This is due to the fact that many franchises in the US and internationally actually operate as absentee owner franchises.
What Is An Absentee Owner Franchise?
Absentee owner franchises do not require their owners to work in them regularly. Essentially, in absentee owner franchises, management teams and staff do the job of running the franchise business while the owner of the franchise can sit back and reap the financial benefits. Many investors and retirees prefer these businesses, also referred to as passive income franchises, because they can trust a team to manage the everyday operations of the franchise business while the owner merely has to ensure that the business is performing up to a certain standard and is meeting all required benchmarks.
The key to ensuring success for an absentee owner franchise is to ensure that your management team is strong and focused on running the business and turning a profit. Because of the many benefits associated with this form of franchise, most absentee owners consider this task to be a small one in the face of steady passive income. As such, passive income franchises are steadily becoming a popular investment move in the business world, with more investors looking for absentee franchise opportunities today.
Franchise Output Forecasts For 2023
When we covered the most profitable franchises in the US in one of our articles, we noted that the franchising industry is expected to continue on a strong growth course in 2023. According to the Franchising Economic Outlook report published by the International Franchise Association (IFA) in March, the total output to be generated by franchised businesses is expected to grow by 4.2% in 2023 to reach $860.1 billion. While this growth is promising, the report also mentioned that mortgage rates this year, alongside high inflation, are two factors that will limit consumer spending and possibly hurt the franchising industry.
Despite this, the inflation situation in the US seems to be calming down at present. The Federal Reserve has paused its rate hikes, and markets are seeing inflation also coming down. While this does not mean that prices will fall immediately, it can signal a break for the franchising industry, considering the fact that many franchises are also evolving and implementing operational efficiencies in their systems, according to the IFA report. Technological advancements in franchises, such as kiosk ordering, digital payments, artificial intelligence software for inventory tracking, and future sales forecasting, are all helping existing franchises cope with other economic burdens. In light of this, the franchising industry seems to be an industry worth investing in, especially for absentee owners looking for passive income. This is why we have compiled a list of some of the best franchises that run themselves that are operating today. They include small franchises as well.
15 Franchises That Run Themselves
dcwcreations/Shutterstock.com
Our Methodology
To pick the franchises for our list, we searched for franchises that allow absentee owners and are profitable. We have ranked them based on the initial investment required to get one of their franchises started, using data from the Entrepreneur's franchise database. They are ranked from the lowest to the highest amount of initial investment, using the maximum values estimated by the Entrepreneur.
Franchises That Run Themselves
15. College Girl Cleaning Service
Initial Investment: $23,000 - $29,000
College Girl Cleaning Service was founded in 2011 as a residential and commercial cleaning services company. It began franchising in 2014, and it is based in Orlando, Florida.
The company has franchise locations across the US and is looking to set up more of them in the country. College Girl Cleaning Service also offers new franchise owners the opportunity to benefit from financing sourced through third parties to help cover the franchise fee and other initial costs.
Like McDonald's Corporation (NYSE:MCD), The Wendy's Company (NASDAQ:WEN), and Dunkin Brands Group Inc. (NASDAQ:DNKN), College Girl Cleaning Service is an old franchise that has contributed significantly to the US markets.
14. Computer Troubleshooters
Initial Investment: Up to $30,000 - $45,000
Computer Troubleshooters operates an international network of locally-owned information technology service franchise offices. It offers managed services, cloud or hosted solutions, networking, software consulting, diagnostics and repair, data backup and recovery, security, and other computer services through its franchises.
Computer Troubleshooters primarily serves small businesses. It was founded in 1997 and has been franchising since then as well. It is based in Independence, Ohio.
13. Sew Fun Studios
Initial Investment: $32,425 - $49,875
Sew Fun Studios was founded in 2009 and is based in St. Augustine, Florida. It is a franchise for creative classes, events, and parties where children are taught to sew.
The franchises have managed to remain operational because Sew Fun Studios is a home-based business with low overhead. Since 2009, the business claims to have awarded over 700 children's franchises. It is owned by Creative Learning Corporation.
12. At Wize Computing Academy
Initial Investment: $40,000 - $70,000
At Wize Computing Academy focuses on teaching STEM education.
11. Mr. Sandless
Initial Investment: $34,000 - $83,000
Mr. Sandless is a wood floor refinishing service provider. Through the company's method, wood floors do not need sanding before they are ready for use.
Mr. Sandless offers its refinishing service for wooden floors, VCT, linoleum, concrete, slate, and laminate flooring as well. The company began franchising in 2005, and since then, it has become a leading franchise in its industry across the US. Mr. Sandless' relationships with third-party financiers also help prospective franchise purchasers with their initial finances in running their franchise.
10. Fetch! Pet Care
Initial Investment: $75,000 - $99,000
Fetch! Pet Care claims to be the largest and most trusted professional dog-walking and pet-sitting franchise in the US. It offers puppy care, dog-walking, cat and small pet-sitting, private boarding, overnight pet care, pet taxi, and other related services.
The company was founded in 2002. In 2004, Fetch! Pet Care began franchising. It is based in Dayton, Ohio. The company's in-house financing only helps cover the franchise fee, but like other ownerless franchises on our list, it also has third-party sources that can help franchise buyers with other startup costs.
Just like McDonald's Corporation (NYSE:MCD), The Wendy's Company (NASDAQ:WEN), and Dunkin Brands Group Inc. (NASDAQ:DNKN), Fetch! Pet Care is a well-known franchise some may be interested in investing in.
9. Tutor Doctor
Initial Investment: $94,000 - $139,000
Tutor Doctor is a company providing in-home and online tutoring services. It was founded in 2000.
In 2003, Tutor Doctor expanded to include more than 600 franchises across the globe. Over 340 of these franchises are in the US. The company offers third-party financing options to potential franchise owners.
8. ProLift Garage Doors
Initial Investment: $106,000 - $145,o00
ProLift Garage Doors is a maintenance company founded in 2015. The company is based in Charlottesville, Virginia. It has been franchising since 2016.
ProLift Garage Doors promises to deliver quality repair and installation services to homes and businesses. The company also offers third-party financing options like many other franchises on our list, which can help potential franchise buyers cover the costs of franchise fee, equipment, inventory, payroll, and more.
7. Best Choice Roofing
Initial Investment: $110,200 - $193,000
Best Choice Roofing is another home improvement and repair company on our list which provides its customers with the opportunity to have their roofs inspected for free without any obligations. The company then offers customers an estimate to repair or replace their roof on the same day.
The company claims to be one of the largest roofing contractors in the US, with over 40 locations in 15 states. Best Choice Roofing was founded in 2009 and began franchising in 2022.
6. Champions Martial Arts International Franchise
Initial Investment: $90,000 - $200,000
Champions Martial Arts International Franchise was founded in 1988 as a martial arts school in New York. Since then, the company has expanded to include more than 65 locations.
The company has a highly-skilled franchise coaching staff and low monthly fees. Champions Martial Arts International Franchise also aims to help its franchisors grow and expand.
