Starting a Franchise as an Absentee Owner

April 22, 2025

by a searcher from Dartmouth College in Hanover, NH, USA

Has anyone here had any experience starting franchises from scratch as an absentee owner? My business partner and I both have full time jobs and are hoping to hire a part-time / full-time owner operator to help us get things started. Is this possible / realistic? Would be great to hear from some of you folks! Thank you!

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Reply by a professional
from Villanova University in West Chester, PA, USA

Hi ^redacted‌, franchise models sometimes allow for absentee or semi-absentee ownership. From a legal perspective, it’s important to confirm whether the franchisor permits that structure— they may require direct operational involvement or place restrictions on third-party management. It’s also important to review the Franchise Disclosure Document if the franchisor agrees to that absentee structure, especially the control provisions, management approval, and termination clauses. Sometimes additional agreements can be drafted to help define authority, performance standards, and ownership protections. I would be happy to discuss this more with you. You can schedule a consultation with me through this link: deanstreetlaw.com/links

Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Great question. I can tell you from a financing perspective lenders typically line the owners to be involved. However, the fact you can maintain outside income is also a positive. If you have someone coming in to manage that has similar experience and you plan to be involved when you can, I think it is something that can get done. However, you need to realize the risk you will be taking on is ultimately your and your partner's responsibility, you have to be prepared to step in and watch things. You also need to check with the franchisor to see how involved they want their owners. Some require the day-to-day managers to be owners. If you would like to discuss more about franchises or financing them you can reach me here or directly at redacted

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