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The Pros and Cons of Owning a Part-Time Franchise

Franchise ownership is a goal shared by many; however, successfully transitioning from working a full-time job to running a full-time franchise may seem dauntingly difficult. The bills still need to get paid, the children still need to eat, the risk might be too great. However, there is another option that makes franchise ownership more attainable: buying a part-time franchise. And, better yet, it’s an option offered in franchise categories ranging from hair cutting to interior decorating to fitness.

So what’s the catch? (Or is there one?) Here are some of the pros and cons that come with becoming a part-time franchisee:

Pros of part-time franchise ownership

1. It often requires a lower initial investment and lower overhead expenses

“Typically, part-time businesses are home-based,” says Tom Scarda, a franchise consultant with FranChoice. “In addition, if it’s a product, the parent company usually [maintains the] stock and ships to the end user. Usually no staff is needed, so all the expenses associated with employees, such as insurance, are eliminated, which makes the margins higher.”

2. It offers an appealing way to earn extra income while investing in your future

“Many people with full-time jobs desire extra income, and the traditional route would be to secure a part-time job,” says Barry Bodiford, CEO of 360clean, a commercial cleaning service franchise. “Many are seeing that the better option is owning a part-time franchise that can benefit them more from a big-picture standpoint.”

3. In economic downturns, investing in a part-time franchise could be a good strategic move

“The recession has created a great deal of insecurity for those who have maintained their full-time jobs,” says Bodiford. “Having a part-time business could allow them to be in a better position should they lose their job in the future.”

4. It allows you to get your feet wet before jumping in head first

Anthony Brown and his fiancée, Virginia Prioleau, purchased their 360clean franchise as a part-time option in February 2009. Just over a year later, the business was doing so well that Brown was able to quit his job as an equipment trainer and run the franchise full time. “I wanted to test the waters first, since this was uncharted territory for me,” says Brown. Their franchise is now the top-performing unit in the entire 360clean system in terms of gross sales.

5. Depending on the franchise system, you can own a franchise while still having a significant amount of time to yourself

“[My franchise] offers seven to eight months off, which for an entrepreneur is great,” says Yvonne Murray who purchased a Smart Tax franchise in November 2009.

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Cons of part-time franchise ownership

1. Working a job and running a part time franchise can be very stressful

“With a part-time franchise, you do have additional income if you have another job like I did, but that also means you are putting in a lot of hours,” says Brown. “It makes it harder because it increases your responsibility. You’re responsible for your job and your business, and they’re two separate things—two separate jobs.”

2. Time management can be a challenge

“You have to manage your business on your own time while working for other people during business hours, and sometimes there are just not enough hours in the day,” says Brown.

3. When you’re off, you’re off. But when you’re on, you really need to be on

“During the tax season—mid-December to late April—I devote 12 hours a day, seven days a week [to the franchise],” says Murray.

4. The money’s not always there

“In some cases a part-time business can yield a significant cash flow,” says Scarda. “However, part-time businesses usually don’t build equity. It’s really an extra source of income that amounts to an extra job.”

Is a part-time franchise right for you?

Only you can determine whether a part-time franchise is the right choice. Assessing the pros and cons against your personal, financial, and career goals will help you make the right decision.

About the Author:

Sara Wilson is a freelance writer who specializes in issues related to small businesses. Contact her at wilson.sara@gmail.com.