How a passive income model can favour lifestyle franchise opportunities
Stephen Spitz & Paul Crabtree| Directors | Xpresso Delight
When making the decision to buy your own franchise business, it is important to consider how the design of the business model will benefit you. Franchise business opportunities that generate a passive income stream may suit your lifestyle needs through greater flexibility and increased autonomy.
We caught up with Stephen Spitz and Paul Crabtree, directors of mobile franchise Xpresso Delight, to discuss the benefits, appeal and inner workings of a passive income franchise business model.
When looking for franchise opportunities, as part of any well thought-out franchise business plan, make a list of priorities and consider your lifestyle commitments and how many hours a week you want to spend with your family and friends. Passive franchise opportunities can often accommodate your lifestyle requirements.
A passive franchise system is where revenue can be generated without an operator being there. For example, the Xpresso Delight mobile franchise system uses the placement of commercial grade bean-to-cup coffee machines and cash flow is generated without the presence of the franchisee being there day to day.
"A passive income from a franchise business can suit most people because it can serve as an additional income stream, and also a primary income stream depending on how much time you want to invest."
Unlike a typical place of employment where you may work nine-till-five, Monday to Friday, all in the same place, a passive income franchise business allows you to select where and when to work. You can tailor your work schedule around your lifestyle commitments, whether they be picking up the children at school or practicing your favourite sports.
In the case of the Xpresso Delight passive income franchise model, a franchisee may have 10 espresso machines operating and will spend perhaps 30 minutes servicing each machine per week. They can decide on how to schedule their business task requirements around their daily schedule. The flexibility provided by a passive income franchise businesses allows you to change and control the hours you work in accordance to the commitments of your lifestyle. This degree of flexibility is possible because a passive franchise business model's strength lies in leveraging time: for instance, an Xpresso Delight franchisee's income is generated at every press of the espresso machine's button, and does not require franchisees to be physically present while it is being generated.
A passive income from a franchise business can suit most people because it can serve as an additional income stream, and also a primary income stream depending on how much time you want to invest. Currently, lifestyle friendly passive income franchises appeal to all socioeconomic and demographic levels of society. In the Xpresso Delight system, there are over 150 franchisees, with the youngest franchisee in their early 20s, and the eldest in their 60s, and each of them can be a good example of a job moulded around a particular lifestyle. Throughout the years, the Xpresso Delight franchisors have seen how a passive model franchise business approach can benefit everyone regardless of their personal circumstances.
For example, Brisbane mother of three Ms Karin Thompson is able to achieve her financial goals, without having to forgo her own personal commitments and hobbies. Along with running her own Xpresso Delight franchise, she competes in triathlons and trains daily.
Since a work-life balance is a main drawcard for those seeking good franchise opportunities, there are two aspects that you should look for to see if a passive income business model offers more ‘me’ time.
Firstly, find a business that allows you to use your home as an office. It will allow you to save more time to spend with your family and doing the activities you love, as opposed to travelling to and from your workplace during mornings and afternoons.
Secondly, find a business that allows some degree of flexibility, where you are in charge of your schedule and can decide to put more hours in when you’re feeling motivated and free of commitments, and take a day off to dedicate to yourself. The greatest aspect of an ideal passive income franchise opportunity is that they can allow for maximum efficiency of every franchisee’s work schedule.
When deciding on a passive income franchise business that’s right for you, consider what kind of improvements the franchise business will have on your life outside of work. Typically the rule of thumb with most businesses is that you get out of it what you put in. Though, from my experience it doesn’t have to be so time consuming when using a passive income system that allows you to make money while doing the things you love.