Three Types of Franchise Ownership

Not Every Franchise Is The Same

Not all franchises are the same, therefore not all franchises are created equally. That’s why there are different types of franchise ownership.

It’s truly a common misconception that the franchise model is a one-size-fits-all. When you break down the facts, you start to realize every franchise is unique. Some run very differently from others, especially depending on the services and/or products offered.

What’s more, not every franchise support team is the same. Some cater less to franchisee success, while others are very hands-on, with you every step of the way. At Sport Clips, we make sure our franchisees are set up to thrive, providing you with well-documented systems, a strong support team, and a proven business model to help your entrepreneurial dreams become reality.

Not Every Franchisee Is The Same

Not only do franchise systems differ, but so do the people who run them. In fact, franchisees can come from an incredibly diverse background from all types of careers and previous work experience.

It’s common for people who enter the franchise model to have a multi-level franchise portfolio, which allows individual business owners to diversify their revenue streams and product/service offerings.

At the same time, it’s not uncommon for entrepreneurs just starting their franchise journey. According to a report in NPR, applications to start new businesses hit 5.4 million in 2021 – a new record – surpassing the 2020 record of 4.4 million. “In the pandemic, millions of people have decided this is the moment to chase their dreams,” NPR reported.

Also, people who start franchises also aren’t limited by lifestyle. Some are retirees, looking for a new, exciting adventure in the next stage of their career. Others have families and are just starting to build a life for themselves and their loved ones.

Across the board, we see all types of people decide the franchise system is the right call for them, like immigrants building their life in America, and veterans looking for the best opportunity after their years of service.

Without a doubt, we’ve seen so many franchisees, some with experience in hair care, some without, find incredible success with Sport Clips.

sport clips franchise types of franchise ownership

Owner/Operator

The first type of franchise ownership we’ll talk about is “owner/operator.”

With this model, you are responsible for the day-to-day operations of the business, which allows you to maintain total control over your investment. As an owner/operator, you make all the decisions. Typically, this model is the first step for a first-time franchisee.

Some drawbacks to consider: this model can be time consuming, and will likely require you to give up your day job (if you have one) and that income. And, because one unit will require long hours, it will take a while before you are able to expand.

However, your costs for employees will be lower compared to other models since you are in charge. This is a great model for detail oriented people who like to have control over every aspect of the business.

Executive/Absentee

Looking solely for an investment opportunity? Then the executive/absentee model is the fit for you.

Since you hire out all functions of the business and don’t get into the nitty-gritty of day-to-day operations, your time commitment is minimal and no industry knowledge is required. If applicable, you can maintain your current job and commitments. Lastly, this model allows for incredible growth, since you can run multiple locations in a backseat, management style.

Some cons: you’ll have higher staffing and operational costs. You trust your success with your employees, which may require you to invest more capital to hire the right people for the job.

Semi-Absentee

Think of a semi-absentee model as a blend of the owner/operator and executive/absentee. This model is ideal if you want additional income and to build equity to diversify your current income. Yes, you hire staff for day-to-day operations, but you focus on leading the business strategy and managing the managers. As a result, this is a good model for people who like to manage, with no industry knowledge required. And, it allows you to own multiple locations because of the investment’s scalability.

Indeed, this franchise model combines the control of an owner/operator model with the time commitment of the executive/absentee model.

What Makes Franchising With Sport Clips Different?

With Sport Clips, our franchisees are focused on a higher level of personal engagement when it comes to their locations. The type of franchise ownership that works at Sport Clips is a people first version of the semi-absentee model. As part of the franchise application/evaluation process, we ensure candidates are a great fit for the culture and requirements of the Sport Clips model. At the same time, we give careful consideration that franchisees are compatible with our business model. Enthusiasm is something many brands ignore, but it is a must at SportClips. It’s embedded in our culture and aligns our franchisees for long-term success in attracting and keeping the best stylist in the industry.

From day one, we make sure our franchisees have every possible resource at their disposal, offering one of the most robust support platforms in the entire industry. We focus on providing you with the tools, resources, and coaching you need to thrive as a business owner, whether you’re just starting out or adding to a complex franchise portfolio.

Ready to start your next chapter as a Sport Clips Team Leader?

If you’re interested in learning more about the Sport Clips franchise opportunity, simply fill out an inquiry form and a member of our team will be in touch with you shortly. We can’t wait to learn more about you!

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