15 Best Franchises to Own for Passive Income

Franchises that practically run themselves are becoming increasingly popular among investors. These businesses are part of a franchise industry that adds a huge $788 billion to the US economy and has created more than eight million jobs.

If you’re interested in owning a business that doesn’t demand your attention all day, you’re in the right place. We’re going to highlight some of the best franchise options that can run with little input from you.

1. BITCash USA

Initial Investment: $40,000 – $50,000

BITCash USA entered the financial market focusing on the cryptocurrency sector by providing Bitcoin ATM services. The franchise began its operations with the goal of facilitating the buying and selling of Bitcoin through conveniently placed ATM machines in accessible public locations.

Since its inception, BITCash USA has been committed to expanding its reach by establishing a network of Bitcoin ATMs across the United States. The franchise is actively seeking to partner with entrepreneurs who are interested in the growing digital currency market. Franchisees are offered the advantage of tapping into the cryptocurrency trend with the support and established systems of BITCash USA.

Prospective franchise owners may find that BITCash USA also provides assistance in identifying ideal ATM locations, operational training, marketing support, and the potential for financing assistance through third-party sources. This can cover various start-up costs, including the initial franchise fee, ATM machines purchase, and other necessary expenditures to get the business up and running.

2. Fidelity ATM

Initial Investment: $20,000 – $30,000

Fidelity ATM specializes in providing automated teller machine services to a wide array of businesses and public locations. Established with the intention to offer convenient cash access solutions, the company has been rapidly expanding its operations through a franchise model.

Franchisees with Fidelity ATM have the opportunity to install and manage a network of ATMs in high-traffic areas, thereby capitalizing on transaction fees. The company has been extending its footprint with strategically located ATMs in various regions, offering a service that benefits both the location and the customer.

Fidelity ATM is committed to supporting its franchisees with comprehensive training programs, technical support, and marketing strategies. This ensures that franchisees are well-equipped to establish and grow their ATM services business. Moreover, Fidelity ATM may provide guidance on obtaining third-party financing which can assist new franchise owners in covering the franchise fee, ATM purchases, and other start-up costs.

Read also: 32 Passive Income Business Ideas

3. Property Management Inc.

Initial Investment: $70,000 – $120,000

Property Management Inc. offers a comprehensive franchise system that allows franchisees to tap into the real estate industry’s vast opportunities through property management services. Established in 2008, the company has been providing solutions for residential, commercial, and association properties.

The potential for passive income comes from the ability to hire a skilled manager to oversee the day-to-day operations of the franchise. This would allow the franchise owner to step back from the everyday business while still generating revenue from the property management fees collected monthly.

4. Snap-on Tools

Initial Investment: $172,000 – $375,000

Snap-on Tools is a leading global innovator, manufacturer, and marketer of tools, diagnostics, and repair information and systems solutions for professional users. Founded in 1920, the company offers franchisees the chance to operate their own mobile tool store featuring high-quality Snap-on tools.

While typically an active business, Snap-on Tools franchise can transition to a passive investment if the franchisee chooses to hire a competent manager or team to handle the sales and daily management tasks. This way, the franchise owner can benefit from the profits of the tool sales without being directly involved in the day-to-day sales route and operations.

5. Sew Fun Studios

Initial Investment: $50,000 – $60,000

Sew Fun Studios teaches the principles of fashion design and sewing to adults and children. Established with the vision to revive sewing as a valuable skill, the company began franchising and has since provided educational programs that promote creativity.

As a franchisee, you can potentially create a passive income stream by employing a manager and skilled instructors to run the daily classes and workshops. This allows you to oversee the business at a higher level without the necessity of being present for day-to-day operations, especially if you have established systems for marketing, enrollment, and class management.

6. Fetch! Pet Care

Initial Investment: $20,000 – $30,000

Fetch! Pet Care is a leading pet sitting and dog walking franchise, serving pets and families across various communities. The company prides itself on providing reliable and trustworthy pet care services and began franchising in 2004.

To turn this franchise opportunity into a passive investment, a franchise owner can hire a team of pet sitters and a manager to coordinate services and handle the operational aspects of the business. With a dependable staff and an effective scheduling system, the franchise owner can enjoy the benefits of the business with limited daily involvement.

7. Anytime Fitness

Initial Investment: $98,430 – $523,824

Anytime Fitness is a 24-hour health and fitness club renowned for its convenience and member-friendly environment. With the promise of providing a high-quality workout experience around the clock, it began franchising in 2002 and has expanded globally.

To operate Anytime Fitness as a passive investment, an owner can hire a competent manager and a team of fitness professionals to oversee daily operations. The club’s 24/7 accessibility is managed with secure automated systems that allow members to use the facilities at their convenience without constant staff presence, making it easier for an owner to step back from everyday involvement while maintaining oversight.

8. Redbox

Initial Investment: $25,000 – $200,000

Redbox is a video rental company specializing in DVD, Blu-ray, and video game rentals via automated retail kiosks. Launched in 2002, Redbox kiosks have become a staple in convenient, quick entertainment solutions in thousands of locations.

For those looking to invest passively, Redbox kiosks can be placed in high-traffic areas where they operate autonomously. The franchise owner can manage and monitor the business remotely, with the need for physical interaction limited to restocking and maintenance, which can be outsourced to third-party service providers. This model offers a franchise opportunity with minimal hands-on requirements after the initial setup.

9. U-Turn Vending

Initial Investment: $20,000 – $50,000

U-Turn Vending specializes in providing vending machine services with a focus on high-capacity candy machines. Established with the aim to offer a low-overhead vending option, U-Turn has been facilitating entrepreneurs to start vending machine businesses since its inception.

As a passive income stream, a U-Turn Vending franchise can be managed with minimal interaction after the initial setup. Machines need to be restocked and serviced periodically, which can be handled on a flexible schedule or outsourced to a route service provider. With machines located in strategic, high-traffic locations, the income is generated with little day-to-day involvement, making it a suitable option for passive operation.

10. Cruise Planners

Initial Investment: $2,295 – $23,367

Cruise Planners is an American Express Travel Representative that operates a franchise model for travel advisors. Founded in 1994, the company provides a business opportunity that allows franchisees to run their own travel advisor business with the backing of a recognized brand.

For passive income seekers, Cruise Planners offers a model that can be run from home with the potential for automation. Franchise owners can leverage the company’s technology and preferential pricing arrangements to sell travel packages while employing experienced travel agents to manage the sales and booking process. With an established system in place, the owner can focus on strategic oversight rather than the day-to-day sales operations, making it a potentially passive business venture.

11. Empire ATM Group

Initial Investment: $40,000 – $50,000

Empire ATM Group is a company that provides ATM placement and management services, allowing individuals and businesses to host ATMs at a variety of locations. With a focus on high-traffic areas, Empire ATM Group helps franchisees to identify strategic locations and provides comprehensive support for setup and operation.

As a passive income opportunity, an Empire ATM Group franchise can be relatively hands-off after the initial installation of the machines. The ATMs require occasional maintenance and cash replenishment, which can be scheduled at the convenience of the franchisee or handled by a contracted service. Revenue is earned from transaction fees, and with a network of machines, a franchise owner can earn a steady stream of passive income with minimal day-to-day management.

12. Mr. Payroll

Initial Investment: $100,000 – $200,000

Mr. Payroll is a financial services franchise that specializes in check-cashing services, often located within convenience stores, gas stations, and other retail outlets. They also offer payday loans, money orders, and wire transfer services. The brand has built a reputation for providing quick and friendly financial services, particularly in areas where traditional banking may not be readily accessible.

For individuals looking for a more passive income model, Mr. Payroll presents an opportunity where the daily operations can be managed by hired staff. The franchisee can oversee the business at a higher level, ensuring compliance with financial regulations and maintaining service quality. With an established system and brand recognition, Mr. Payroll can offer a consistent income through service fees while requiring limited direct involvement from the owner.

13. Pharmabox

Initial Investment: $65,000 – $120,000

Pharmabox is an innovative franchise that provides automated vending machines offering pharmacy products, including over-the-counter medications, personal care items, and health-related products. Founded with a mission to make essential health and personal care products more accessible, Pharmabox vending machines are typically placed in high-traffic areas such as malls, airports, and hotels.

For entrepreneurs looking for a passive investment, Pharmabox can be an appealing option. Once the machines are installed and stocked, they require little active management. The vending machines are automated, and inventory can be tracked remotely, which minimizes the need for day-to-day hands-on operation. Income is generated through the sales of products, and with multiple units, a franchisee can potentially earn a significant passive income stream.

14. Xpresso Delight

Initial Investment: $84,500 – $115,000

Xpresso Delight specializes in providing premium coffee services to offices and corporate environments. They offer a simple business model where franchisees place fully automated gourmet espresso coffee systems in offices, and clients pay per cup. Xpresso Delight focuses on the B2B sector, offering a coffeehouse experience in the workplace without the coffeehouse price tag.

The passive aspect of the Xpresso Delight franchise comes from its automated nature and the company’s business model. The franchise owner is responsible for securing locations, setting up the machines, and maintaining inventory. The machines do the rest of the work, brewing coffee and charging clients per cup. Replenishment and maintenance can be scheduled regularly, allowing for a mostly passive operation that can provide a continuous revenue stream as workers enjoy their daily coffee.

15. Clothes Bin

Initial Investment: $142,200 – $149,500

Clothes Bin is a franchise that provides a green solution to recycling clothes, shoes, and textiles. Their business model involves placing collection bins in high-visibility and high-traffic areas where community members can conveniently drop off items they no longer need. These items are then collected and processed to be recycled or redistributed, promoting sustainability and reducing waste.

For those interested in a franchise with a passive aspect, Clothes Bin offers an attractive opportunity. The collection bins act as silent fundraisers 24/7, requiring no staff to accept donations. Franchisees service their bins regularly to collect the contents, which can then be sold per pound to second-hand retailers, or shipped to developing countries, generating revenue.

Clothes Bin provides a tech-savvy approach to traditional clothing donation bins, as each bin is equipped with BLIP (Bin Location Information Program) technology, which notifies the franchisee when a bin is ready to be serviced. This technology streamlines operations, allowing franchisees to maximize their collection routes and manage their bins effectively with minimal daily effort, thus supporting the potential for a passive income stream.

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