Franchise ownership doesn’t always involve hands-on management. Some high-performing franchises are designed to bring in income with minimal day-to-day involvement. They are ideal for anyone seeking passive income. Passive and semi-passive franchises offer scalable, excellent opportunities for passive income, whether you simply want to create a new income stream, prepare for retirement, or something else.
In this blog, we’ll feature some of the best franchises for passive income, from laundromats and gyms to salons and more. These businesses offer long-term earning potential and the flexibility to own a company without being tied to day-to-day operations.
The Best Franchises for Passive Income
Many franchise models are built to enable semi-absentee ownership, general manager oversight, or even full passive operation. The businesses listed below are designed with streamlined systems and dependable cash flow, making them great investment opportunities for anyone looking to build wealth without a full-time commitment.
| The Best Franchises for Passive Income | ||
|---|---|---|
| Franchise | Estimated Payback Period | Ownership Model |
| WaveMAX Laundry | ~4.4 years (unleveraged) | Passive |
| Planet Fitness | ~4.5 years | Semi-Passive |
| Great Clips | ~3 to 5 years | Passive with General Manager (GM) |
| ACFN (ATM Network) | ~1.5 to 2.5 years | Passive |
| Anytime Fitness | ~4.5 to 6.5 years | Passive with GM |
| FastSigns | ~3.5 to 5.5 years | Passive with GM |
| Christian Brothers Automotive | ~4 to 6 years | Passive with GM |
| The Clothes Bin | ~2 to 3.5 years (est., based on 20 bins) | Passive |
| NTV 360 | ~2.5 to 3.5 years (projected from $295k GR on $85k CAPEX) | Passive |
| Property Management Inc. (PMI) | ~2.5 to 4 years | Passive with GM |
1. WaveMAX Laundry
WaveMAX is a growing laundry franchise with 56 of its 57 units franchised. It has a scalable, franchisee-driven model and has seen solid 3-year unit growth. It also boasts a 0% closure rate, which is an excellent indicator of reliability. If you’re looking for a passive ownership model with automated operations, it’s an excellent choice.
2. Planet Fitness
Planet Fitness is a major force in the fitness industry with over 2,500 U.S. locations and a 99% franchise continuity rate. Its model supports semi-passive ownership through general managers and is ideal for investors with the capital to support a high-revenue, recurring-membership business.
This franchise delivers strong financial performance. Its average unit volume is $1.77 million, and its estimated EBITDA margin is 22–28%. While the total investment can exceed $3 million, the brand’s scale, recognition, and cash flow make it an attractive option for any investor looking for passive income.
3. Great Clips
Great Clips is a well-recognized hair salon franchise with over 4,400 units, all 100% franchised. It’s built to be scalable and supports passive ownership through general manager oversight. This business benefits from repeat customer traffic, low inventory requirements, and simple service offerings that don’t rely on the owner’s expertise. You don’t have to be a licensed hair stylist to own this franchise.
Great Clips has an estimated 15–20% EBITDA margin and reasonable payback timelines. It’s an excellent option for any absentee investor seeking a stable, low-maintenance business.
4. ACFN (ATM Franchise)
ACFN is an ATM franchise that specializes in placing and managing ATMs in hotels, travel centers, and other high-traffic locations. Once ATMs are installed and serviced, franchisees generate income with minimal ongoing involvement.
This brand has a very low closure rate, no company-owned units, and operates in a niche with consistent demand and low competition. High gross margins and scalable operations make it an excellent option for any investor seeking an automated, hands-off income stream.
5. Anytime Fitness
Anytime Fitness is a global fitness brand with over 5,000 locations, including over 2,300 in the U.S. Its 24/7 operating model generates steady, recurring revenue from customer memberships. It supports semi-passive ownership through general managers. 100% of its units are franchised, and it has an estimated EBITDA margin of 18–22%.
Anytime Fitness has reliable cash flow, a strong support infrastructure, and is backed by high consumer demand. It’s one of the best franchises for passive income on this list.
6. FastSigns
FastSigns is a leading visual communications and signage franchise that mainly serves B2B clientele. It’s ideal for investors looking to operate a predictable, weekday-focused business. 100% of its locations are franchised. There are no company-owned units. This brand supports semi-passive ownership through experienced general managers. It’s backed by an estimated 18–22% EBITDA margin and solid cash flow potential.
7. Christian Brothers Automotive
Christian Brothers Automotive is a faith-driven auto repair franchise that offers a unique blend of premium real estate, operational support, and a semi-passive ownership structure. 100% of its ~270 units are franchised with no company-run locations. Franchises rely on general managers while leasing properties built by the brand.
This business operates on a profit-split model rather than traditional royalties. It has an estimated 18–22% EBITDA margin and owner cash flow ranging from $100k to $180k. It’s ideal for investors who want to be hands-off in daily operations but remain involved in leadership.
8. The Clothes Bin
This is a recycling franchise that offers a truly passive business model. Franchisees earn revenue by collecting and reselling unwanted clothes and shoes through strategically placed and branded bins. The upfront investment is around $167k, and virtually no staffing is required.
The Clothes Bin has an estimated EBITDA margin of 65–75%. Franchisees can expect passive cash flow of $3,000–$7,500 per bin annually, depending on volume. It also offers optional support for location scouting.
9. NTV 360
NTV 360 is a digital out-of-home advertising franchise offering a scalable, tech-driven path to passive income. Franchisees earn revenue by installing and operating “Component Players” that stream targeted ads in high-traffic indoor locations. The system is new, and no operational franchised units have been established. However, its affiliate location reports over $295k in gross revenue and a projected gross profit margin of 55–70%.
Investment costs around $48k, and no storefront or staff is required. Once site contracts and ad placements are secured, this franchise is great for investors looking for low-involvement, asset-based income streams.
10. Property Management Inc. (PMI)
Property Management Inc. (PMI) is a diversified property management franchise offering services across residential, commercial, and short-term rental segments. With over 350 U.S. franchisees and 100% franchised units, it’s built for scalable, semi-passive ownership. Franchisees often manage with the help of a general manager.
This franchise has a low overhead model and recurring revenue streams from long-term contracts. Its EBITDA margin is estimated at 25–40%, with projected cash flow ranging from $70k–$150k annually. Its total investment starts around $77k. This franchise offers a practical entry point into the real estate industry for those seeking income with minimal daily involvement.
What to Know Before Investing in a Passive Franchise
Passive franchises can generate income and freedom from hands-on, daily management requirements. However, it depends on choosing the right model and having the proper support. Here are a few helpful tips before you commit:
- Consider franchise support: Look for franchisors with onboarding support, operational guidance, and marketing systems and solutions.
- Who is your GM? A trustworthy and capable general manager will be key to running many of these semi-absentee franchises without the need for your daily input.
- Understand what’s required: Passive can mean “hands-off” but not wholly absent. You need to know what’s expected of you at each stage.
- Crunch numbers: Does your investment align with your return expectations and risk tolerance? You need to make sure.
Still on the Fence? Contact Franchise.com Today!
Investing in the best franchise for passive income can be a great way to build wealth, earn recurring revenue, and secure your financial future without managing a business full-time. A well-researched choice now could pay off for years to come.
If you have questions about how the best franchise for passive income can help you supplement your daily job, prepare for retirement, or more, contact us today! We have years of experience guiding investors towards the best franchise opportunities that meet their unique needs.
