Franchise operators now have something new in common with struggling artists and would-be TV stars: None are quitting their day jobs just yet.
The number of franchisees hanging onto their full-time jobs and managing their franchises remotely has increased as people hope to generate more income and create more economic security in this economic climate, reports the Washington Post.
The number of lower-investment franchises operated out of a home office has grown over the past few years as credit markets tightened, the paper reports.
“While franchisors generally prefer to have active business owners, given the current credit market, prospective investors who are well-capitalized because of second income streams may be more appealing candidates,” International Franchise Association CEO Steve Caldeira tells thePost.
Some franchises are easier than others to operate part time and have different requirements for those looking to franchise, the paper reports. And operating franchises part-time comes with headaches of its own: On top of general financing, an owner will need to hire a manager to run day-to-day operations.
The Post cites Prasad Raju, an IT architect who is opening a Great Clips in the near future in hopes of generating a second income while still keeping his current job.
“It all starts with me--how I set my expectations and how I treat the manager,” Raju tells the paper. “If you hold people accountable, set their expectations and take care of their needs, I think it should work.”