Passive investments are those with little activity for the investor. It’s a buy-and-hold strategy with no day-to-day participation. It’s a long-term strategy that can yield reliable passive income for the investor.
A passive income is what you receive without having to do much work for it. In contrast, an active income requires you to put effort into it to get income, like your job for a salary or running your business for profit. Examples of passive income include the rent you receive from a property, dividend income from your stock portfolio, interest from a savings account, or a passive investment in a business you aren’t actively involved in, i.e., you are a silent partner.
Why you need a passive income
A passive income is beneficial for your financial stability and prosperity. It enables you to supplement your primary income. That extra cushion buys you peace of mind.
You never know when an emergency or opportunity may arise. If you have a passive income, you can increase your ability to take care of emergencies or take advantage of opportunities.
Your primary income won’t limit you. A passive income gives you more luxuries in life. Additionally, you can take more risks when upgrading your skills or career roles.
Fully passive franchise investments model breakdown:
- THINK OF IT LIKE A CORPORATE-RUN LOCATION, EXCEPT THE FRANCHISEE OWNS THE BUSINESS 100%.
- CORPORATE MANAGEMENT FINDS THE LOCATION (IF BRICK & MORTAR); FRANCHISEE APPROVES & SIGNS THE LEASE.
- CORPORATE MANAGEMENT RECRUITS ALL STAFF; STAFF IS EMPLOYEES OF THE FRANCHISEE.
- CORPORATE MANAGEMENT TRAINS FRANCHISEE’S STAFF & MANAGES DAY-TO-DAY ACTIVITIES.
- CORPORATE MANAGEMENT MANAGES THE MANAGER, KPIs, MARKETING, PAYROLL, BILLING, EXPENSES, ETC.
- FRANCHISEES KEEP ALL THE PROFIT OF THE BUSINESS AS THE OWNER OF THE FRANCHISE.
- MANAGEMENT FEE COST IS 5% OF GROSS REVENUE, IN ADDITION TO THE STANDARD ROYALTY PERCENTAGE.
- PERFECT OPTION FOR CORPORATE EMPLOYEES WITH DEMANDING JOBS OR MULTIPLE BUSINESS OWNERS.
- FRANCHISEES PURCHASE GEOGRAPHICALLY WHERE THEY CAN AFFORD, ANYWHERE IN THE COUNTRY.
- TIME COMMITMENT (ONCE OPEN) IS 2 HOURS PER MONTH ON BI-WEEKLY C-LEVEL CALLS TO REVIEW BUSINESS.
There are opportunities when it comes to passive investment franchises. The Fusion Franchising team will help you discern the best investments for you.