Types of Franchises: Understanding Franchise Operation Models

Types of Franchises: Understanding Franchise Operation Models

Types of Franchises: Understanding Franchise Operation Models

Entrepreneurs are well-known for juggling countless tasks and managing a never-ending to-do list. If you want to own a business while keeping your workload manageable, a semi-absentee franchise can give you flexibility while also letting you grow as a business owner. Learn more about the pros and cons of this operational model.

Types of Franchises

To understand which franchise business model appeals to you, let’s start by understanding the five main types of franchises:

  1. Job franchise: If you prefer to work alone or with a small team, a job franchise may be a good choice. An Owner-operator franchise often requires a lower investment because it involves services that can be managed from home or a mobile location.
  2. Product franchise: Here the franchisor controls the retail products that the franchisee sells, such as auto parts stores and beverage distributors.
  3. Business format franchise: In addition to a product, service, and brand, the franchisor offers a complete system for operating the business, including marketing, operational processes, and a business plan.
  4. Executive franchise: This model is designed for a person who wants to reap the rewards of investing in a business and leave management to a full-time employee.
  5. Conversion franchise: In a conversion franchise, existing businesses convert into franchise units under a franchisor’s brand.

What Is a Semi-Absentee Franchise?

Unlike some franchise structures, a business format franchise can be operated as a semi-absentee franchise. You can own and grow the business without handling day-to-day operations. Semi-absentee owners typically invest in the business and oversee its progress, while a part-time manager supervises the daily activities. It’s an ideal model if you wish to continue handling other obligations or pursue other interests while also owning a business. Semi-absentee owners devote at least 10 to 20 hours per week to the business and concentrate on adding customers, networking, and various high-level management tasks.

Semi-absentee owners work well in industries where operations can be standardized and replicated through comprehensive training and systems. Some of the best semi-absentee options include retail, fast food, fitness centers, property management, and home services.

Pros and Cons of Semi-Absentee Ownership

Is semi-absentee ownership the right answer for you? Let’s weigh the pros and cons.


  • Income diversification: Adds a new income source to your portfolio.
  • Scalability: Easier to scale the business as you're not tied down to daily operations.
  • Flexibility: You can set your schedule and focus on work-life balance by allowing someone else to handle daily tasks.


  • Less control: Reduced presence may lead to less control over minute-to-minute business operations.
  • Dependence on staff: The business heavily depends on the performance and reliability of the manager and staff. At least 19% of small business owners said recruiting and retention is their biggest challenge.

When searching for a semi-absentee franchise that fits your needs, consider your investment capacity and the level of involvement you want in the business. Look for franchises that offer robust training and ongoing support systems.

Why Premium Service Brands Is the Ideal Choice

Premium Service Brands (PSB) stands out as a top choice for new entrepreneurs exploring semi-absentee ownership opportunities. We specialize in home services with brands like 360° Painting, ProLift Garage Doors, and The Grout Medic.

Our franchise model is designed to provide comprehensive support, from training and marketing to ongoing operational assistance. Even if you're not involved in day-to-day operations, your investment is protected and primed for growth. We understand the balance needed between owner involvement and professional management.

Our franchises are structured to be flexible with the amount of time you can commit. Whether you choose a business format that allows for absentee ownership or prefer being more hands-on, we provide the framework that’s right for you.

Learn More About PSB

To learn more about partnering with PSB to launch a business, get started!

Infographic of Premium Service Brands franchisee support

Owning a business requires juggling the seven spinning plates — operations, finance, human resources, sales, marketing, administrative, and networking. A semi-absentee owner can hand off operations to a part-time manager to lighten the load.