Is it Worthwhile to Invest in a Franchise as a Side Gig? - Side Hustle Nation

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      This side hustle model has a lower failure rate compared to most independent startups. You can follow a validated playbook for success. But is it the right choice for you?

      Today, we're examining the strategy of franchises as a side hustle, which involves investing in someone else’s brand and system rather than starting from scratch. If done correctly, today’s guest asserts that it can potentially supplant your income within 2 to 3 years on a part-time basis.

      Greg Mohr, the author of *Real Freedom: Why Franchises Are Worth Considering and How They Can Be Used for Building Wealth*, operates FranchiseMaven.com. Tune in to Episode 718 of the Side Hustle Show to discover:

      - How franchises can function as a semi-passive side hustle

      - Which industries present the best opportunities

      - The actual costs and financing avenues

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      **Is it Possible to Run a Franchise Part-Time?**

      The brief answer is yes, it depends on the franchise.

      The key is to find what is referred to as a semi-passive or semi-absentee franchise, where you are not directly performing the work. Instead, you manage the business or hire a manager to oversee operations.

      Greg recommends speaking with at least 10 current franchisees who operate the business semi-passively to get an accurate understanding of the time commitment involved. “Each individual franchise will vary,” Greg stated. “The best approach is to talk to at least 10 current franchisees who are managing that business on a semi-passive basis to understand what that truly includes…”

      **Real Examples of Semi-Passive Franchises**

      Greg shared several examples from his clients:

      - **The Symphony Orchestra Director**: A man directing the symphony orchestra in Houston sought a semi-passive opportunity and entered a fitness franchise, merging his passion with a business model that aligned with his objectives. He is now transitioning away from his regular job.

      - **Real Estate Investors**: Numerous real estate investors pursue service-based franchises manageable in a semi-passive manner, akin to managing rental properties. Greg highlighted heating and air conditioning, plumbing, electrical, and restoration services as excellent options.

      **Which Industries Are Best for Part-Time Operators?**

      For a lucrative franchise, consider services people require daily. Greg’s top suggestions are:

      - **Heating and Air Conditioning (HVAC)**: A universally needed service with a wide potential customer base.

      - **Plumbing and Electrical Services**: Vital services with ongoing demand.

      - **Senior Care**: Primarily private pay (clients often have funds available), making it a growing sector.

      - **Tutoring**: Parents continuously seek educational support for their children.

      - **Health and Wellness**: An everyday necessity for everyone.

      These industries are fragmented, leaving no single company with a significant share, allowing franchise brands to expand.

      **What to Consider in a Service Franchise**

      When assessing service franchises, Greg advises checking for a call center. You won’t want to handle customer calls all day, even if you employ a manager.

      To mitigate risk, target franchises with 100 or more franchise units. Only 5% to 10% of the 4,000 franchises in the US reach this level.

      Also, consider franchise groups that encompass multiple brands:

      - **Authority Brands**: Features Mr. Sparky, One-Hour Heating and Air Conditioning, Benjamin Franklin Plumbing, and Monster Tree Service.

      - **Neighborly Brands**: The largest home services franchise group in the US, including brands like Molly Maid and The Ground Guys.

      - **Belfor Group**: The world’s leading restoration company, which handles disaster recovery and includes brands like 1-800 Water Damage.

      **Do You Need to Be Skilled in the Work?**

      No.

      The franchisor's objective is for you to focus on managing the business rather than working within it. Greg shared an example of 1-800 Water Damage, which shows new franchisees how the work is done initially, but that’s likely the only time they’ll