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Difference Between Franchise Investor and Franchise Owner

All USA Franchises July 26, 2019
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Franchise Investor Vs Franchise Owner
Owning a franchise is a great way to break into the world of business. It's a fantastic way to earn a good living and to be your own boss at the same time. There are two ways you can go about doing this. You can be a franchise investor or you can be a franchise owner/operator. While the two are similar, they are two very different approaches to buying into a franchise. What is the difference between being a franchise investor and a franchise owner/operator?

No matter which way you go, buying a franchise is an investment. Some investors are buying a franchise (or several franchises) as an investment, with no intention of being a hands-on participant. This really requires that you hire the right people who are capable of operating your franchises without your involvement on a day to day basis. This type of investor is often called an absentee owner. This doesn't mean you aren't involved in the franchise at all. Of course you will be involved. It simply means that you may not be in the store every day and that you aren't actually doing the work in the franchise. These day to day operations are tasked to those employees you hire to run the franchise for you. Basically, as an absentee owner/investor, you will oversee your franchise but will leave the ground-level details to others. Franchise investors are typically in it for the money and will choose franchise opportunities accordingly, where a franchise owner/operator may be more likely to choose a franchise as much for the passion of it as for the money.

Owner Operator Working
The owner-operator will be in the store daily, running day-to-day operations. In fact, many people refer this as "buying yourself a guaranteed job." Franchise owner/operators have no other job but running their franchise. This allows them to have more control over the business and marketing aspects of the franchise and to be more aware of what is going on. Owner/operators are likely to work right alongside their employees, not only running the operation, but additionally doing the things necessary of an owner/investor. Many owner/operators start out with one franchise while investors often have more funds to work with and can purchase several franchise locations. At some point, an owner/operator of a franchise business can amass several locations and can eventually even get to the point of making the switch from owner/operator to someone who buys franchises for investment purposes.


Since the franchise investor isn't on premise every day, they are likely to have time for other business interests. While the franchise investor isn't working in the business, he will be working on the business, meaning he will be making decisions regarding business strategy and growth. Doing this for several franchises can be extremely time consuming, so while the franchise investor is not present in the day to day, there is a lot of work that goes on behind the scenes.

Franchise Investor Working
Franchisors often prefer franchisees who want to work hands on. They sometimes feel that the owner/manager is going to invest more in the customer because the owner/operator of a franchise may feel more "invested" in their franchise. Not always, but in some cases, a franchise investor has so many irons in the fire that they may not invest much personal time into one of their franchises over another.

One of the pros of being a franchise investor is that you are able to invest your time into several business ventures, which means you can grow your wealth faster. The owner/operator of a franchise, on the other hand, will have his hands full with the day to day operations of their new business venture.

Regardless of whether you want to go the route of the franchise investor (and assuming you have the kind of funding this route requires) or you are simply looking for a solid franchise as a way to earn a decent living, franchising is a good way to be in business and be your own boss.


The best place to start your search, whether you are a franchise investor or you want to be an owner/operator, is All USA Franchises. By using the start your search option on the website, you can search for the perfect franchise by industry. All USA Franchises is on a mission to provide franchise investors, potential franchisees, and franchisors with a place to come together. Our goal is to provide access to the 3000 plus franchise opportunities in the United States. This is a completely FREE service, and since we never charge franchisors to list their franchise opportunities, you will always see all of the available opportunities, not just those who have paid to be viewed.

All USA Franchises lets you look at franchise business opportunities and gives you the information you need to make an informed decision. Whether you are looking to invest in a franchise or you have a franchise to list, let All USA Franchises be your starting point. While you're visiting, be sure to look at our blog for interesting articles, tips, and information regarding the very latest in franchise industry news.

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