As an entrepreneur running your own business, you might expect to work 50 hours a week — or more. That’s often the reality, but not always. You could instead invest in a passive income franchise and spend very little time on the day-to-day operations.
What Is a Passive Income Franchise?
Let’s start with the definition of a franchise. It’s a type of business entrepreneurs buy that comes with the name, branding, appearance, and ways of doing business of an older and more established operation, known as the franchisor.
You see endless examples of franchises in most business categories wherever you live. Consider such familiar names as McDonald’s, Merry Maids, Freeway Insurance, 7-Eleven, and The UPS Store, among countless others. A good franchisor will offer the new business owners comprehensive training and guidance as well as a built-in customer base. This is especially appealing to first-time business owners.
Many franchisees work long hours in their business, but others look for passive income franchises. Also known as hands-off franchises, these are businesses with a trusted management team already in place. In other cases, the companies are automated and can be operated without anyone on the premises on a regular basis.
As a result, the owner/investor doesn’t feel the need to be on-site regularly.
Types of Passive Income Franchises Available in 2025
Some types of businesses lend themselves to the passive or hands-off franchise model better than others. Here are a few of the categories that work best without your constant “sleeves rolled up” involvement.
Absentee Owner Franchise Models
These franchise businesses let the investor-owner generate an income with minimal day-to-day involvement. Consider vending machine kiosks or self-service laundries. You might hire one employee to open and close the operation or provide cleanup or maintenance services, but your presence is not often required.
Other examples can include housekeeping and carpet cleaning services.
Semi-Passive Franchise Opportunities
Do you have 10 or 20 hours a week to devote to your new enterprise? If you have a good management team in place, you might be able to spend minimal weekly hours while running your own franchise fast food establishment, restaurant, bar, or retail operation. Many health and fitness facilities can also be operated with little labor or day-to-day owner participation.
Just make sure your team can contact you anytime you’re urgently needed, and you can work remotely.
Real Estate-Based Franchise Systems
Consider self-storage facilities, leasing and rental businesses, and property management firms. These are examples of franchise operations within the real estate business sector where the owner might not have to be available and on-site at all times.
6 Examples of Top Passive Income Franchises in 2025
Are you seriously thinking of investing in a franchise business that can “run itself” — or at least enable you to work less than 40-plus hours a week in its operation? Here are a few examples of franchisors you might approach.
Check the online franchisor websites of each of these and other examples of passive income investments.
1. Liberty Tax Services
Count on this being a full-time job for one part of the year — tax season. You’ll still have activity the rest of the year, but the intensity level decreases after April 15.
2. Two Maids
This is just one example of a housekeeping business you can operate as at least semi-passive. The key here is to employ good, reliable cleaners and be easy to contact if problems occur.
3. Dunkin’
Yes, even a fast food business can provide a passive income if you have a good local management team behind the counter. Also, you will conduct most of your daily business in the morning at Dunkin’, so you should have at least half the day off, even if you have to stay more actively involved.
4. Detail XPerts
Many of today’s car washes are fully or almost fully automated. Detail XPerts is one good example of this business model, but there are many others. Your main costs will be in the facility and the automated technology.
5. National ATM Systems
What could be easier (and more passive) than sending a trained technician to service the automatic teller machines you place in businesses?
6. HealthyYOU Vending
Like National ATM Systems, the main part of your job — or that of your salespeople — will be getting your product in participating locations. Once that’s done, your technicians can fill and service the machines while you check in regularly, but not necessarily 40 hours a week.
Setting Up Systems for Truly Passive Management
Start with thorough due diligence. Your franchise representative might call the franchise “hands off” or “runs itself,” but is that really the case? Talk with other franchisees if you can, and know every step necessary to run the business. If it seems too complicated to run as a true hands-off business, reconsider your options.
If you do take the plunge, make sure you hire and train good people. That’s the simplest but best advice you can take to heart when investing in a passive income franchise. Your day-to-day involvement might not be necessary if you have a good, reliable team behind your operation. Just make sure you’re available when needed.
That brings us to the second tip for such a business model: Make sure you have the technology set up so you can work remotely and be reachable whenever the need arises. Even though your level of commitment is passive, the business is always your bottom-line responsibility. That means you must be able to go from passive to full activity when business conditions demand it.
Future Trends in Passive Income Businesses
As you might have determined when reviewing some of the best passive income franchises for sale, automation plays a big part. Businesses that don’t rely on strong contact with your customers or clients might work best.
In other words, if you have a car wash, ATM, or vending machine business, you don’t have to devote time to coaxing sales. It’s just a matter of placing the machine in front of an audience.
Artificial intelligence will also play a big part in reducing the workload of business owners in the very near future. The more AI can do to support your work operation, the less you’ll be responsible for on a day-to-day basis.
Stay on top of the technology that can make your business less hands-on. This future-tech might be the best investment you can make to protect your passive income.
Legal Considerations When Buying a Passive Business
Every franchisor will present you with a Franchise Disclosure Document (FDD). Read it carefully. This will give you all of the details on how you can — and must — run your franchise business and the franchisor’s expectations and requirements.
You’ll learn such fine points as the territory you must operate in or avoid. Where are other franchisees located? What are the full costs and the restrictions on how you do business? These are just some of the questions your FDD or your franchisor rep should be able to answer.
In addition to reading it yourself, let your lawyer, accountant, and other professional advisors review your FDD. Don’t sign anything until you’re convinced the franchise has all the passive income potential that you imagined it would present.
Why an Insurance Franchise Like Freeway Is a Great Investment Alternative
Feel like rolling up your sleeves and controlling your own fate? A passive income investment has its benefits, but you’ll find fewer avenues for creativity, flexibility, and ingenuity than one in which you thrive by your own skills in attaining and growing a customer base.
At Freeway Insurance, you’ll turn prospects into policyholders and then get an opportunity to renew and upgrade their policies and introduce them to additional lines of coverage. You can’t do that with a vending machine business.
You’ll find Freeway franchisees coast to coast, each of whom has been comprehensively trained and is given 24/7 guidance when needed. We are a trusted brand with a great reputation, supported by national advertising campaigns. That means your customers already know and will seek out your brand even before you open your doors for business.
Freeway is a highly affordable franchise too. You can start small, perhaps operating from the spare room in your home or apartment. You won’t need to spend six figures on physical inventory or the latest automation technology. Go into business with little more than your laptop, phone, and business cards. You can also start as the sole employee, only adding to your team as your level of business increases.
Interested in a less passive but more rewarding franchise opportunity?
Contact a Freeway Franchise representative today.
Call us at 877-822-3024.
You can also give us your contact information, and we’ll reach out to you.
