The Brian Beers Show

Episode: Can You Really Earn Passive Income With a Franchise?

Date: September 29, 2025
Host: Brian Beers

Overview

In this candid solo episode, Brian Beers dives deep into the myth and realities of “passive” or “semi-absentee” franchise ownership. Drawing on hard lessons from his expansive, multi-million dollar franchise career, Brian breaks down what aspiring owners get wrong about hands-off business ownership, why the path to truly passive income is long and demanding, and what franchise models really work for aspiring hands-off investors.

Key Discussion Points and Insights

1. The Passive Income Hype and Its Pitfalls

• The Question Everyone Asks
  • Brian opens with a recurring question he gets: Can you run a franchise in just 5-10 hours a week for passive income?
  • He immediately calls out this as the “wrong question”—misunderstandings here risk significant financial loss.
• Industry Buzzwords
  • Terms like "semi-absentee ownership" are thrown around to market franchises to high-income professionals wanting extra income streams without quitting their jobs.
  • The easy, passive image is a fantasy: “It is never easy and it is never that quick.” (01:15)
• What Are You Really Chasing?
  • Is it actually passive income you want, or are you risk-averse to quitting your job?
  • If you're just chasing returns, “there are way better places for you to invest your money” than a franchise (real estate, established businesses)—lower risk, less headache. (01:53)

2. When Semi-Absentee Ownership Fails

• Sales-Heavy Businesses:
  • High-ticket, home service franchises (roofing, cabinets, etc.) require sales energy and owner drive—tough to outsource to a manager or commission-based salesperson. (04:05)
• Relationship-Based Sales:
  • Commercial services relying on owner-to-owner connections are nearly impossible for absentee managers to replicate.
  • Example: Brian’s own failed attempt—“I’ve seen it really struggle, including myself...” (05:00)
• People-Heavy Operations:
  • Businesses with high turnover and lots of staff (senior care, cleaning) need present ownership.
• Custom Service Businesses:
  • Anything requiring skilled, detailed work (custom manufacturing/repair) is hard to operate remotely—training, consistency, and troubleshooting fall to the owner.

Brian’s $300,000 Loss: Real-World Cautionary Tale

• Auto Parts Franchise Failure –
  • While expanding his Midas auto repair business, Brian invested in an auto parts distribution franchise, thinking his industry knowledge would translate.
  • Hired a manager, tried to run it part-time, but underestimated the relationship-driven nature; struggled to compete, ultimately lost $300,000 and sold the business for $1.
  • “I ended up losing about $300,000 over the course of six years in this business...” (12:32)
  • “Ultimately, I sold the business for a dollar. The liability and the weight on my shoulders was worth way more…” (15:45)
• Lesson: “If I was full time into the parts business, I believe I would be successful with it. Because, you know, anything that I put my full effort on, I do have success. But because I was split, it was just such a challenge for me.” (16:22)

3. What Actually Works for Semi-Absentee/Passive Owners

A. Built-For-Process Franchises

• Look for Simple, Process-Driven Models
  • Fitness centers (e.g., Anytime Fitness): Revenue is tied to memberships, not daily transactions. Can hire third parties for much of operations.
  • Laundromats, car washes: Revenue relies on equipment, not high-touch service.
  • Salon suites (real estate focus), simple spas, or streamlined QSR (smoothies, ice cream): Fewer moving parts, easier to manage with reliable processes.
  • “What I would look for is something simple and extremely process driven... if it's process driven, anybody can do it...” (21:45)
• Avoid high-ticket, relationship, custom, or people-heavy businesses for semi-absentee ownership.

B. Mental Commitment Is Non-Negotiable

• Even with limited time, you must be mentally all-in.
  • Allocate mindshare: 9-5 for your job, 5-9 for the business.
  • Overpay a manager for reliability and set strict standards.
  • “The main principle is you have to be mentally all in on it... while you may be working 9 to 5, from 5 to 9 you are thinking about the business.” (25:30)

C. The Partnership Structure

• Have a Money Partner and an Operating Partner
  • Money partner brings capital, finance, back-office skills.
  • Operating partner brings time, energy, and day-to-day hustle.
  • Need big enough scale (multi-unit/territory) for partnership to pay off.
  • Cites his own example: In Houston's Waterloo Turf franchise, Brian is the money guy, while his partner earns equity and “first dibs on all the profits” for intense hands-on work. (28:25)

4. The Real Path to Passive Ownership: Earn It Over Time

• The Path to 10-Hour Weeks
  • Brian now spends just 10-15 hours a week on his Midas stores—after building up to 35 locations, assembling a C-suite, and risking “a ton of money” and personal guarantees.
  • “I have earned the right to be where I'm at today. But if you're just starting out, like you haven't earned anything, to be totally honest.” (19:45)
  • Vision of 5-year wealth is attractive but you must “pay your dues”—don’t expect Day 1 freedom.
• Franchising Is Powerful, But Not Easy
  • “It takes work. It takes effort. It is simple in terms of what can be done, but it's not easy.” (32:31)
  • Many get sold a vision of easy money and wind up stressed, working in the business, or regretful.

Notable Quotes & Memorable Moments

• “If you put part time effort into anything... you are going to get part time results.” – Brian Beers (03:15)

• “Semi absentee ownership...it's a buzzword that’s used to sell franchises to high income professionals… it is never that easy and it is never that quick.” (01:13)

• “I ended up losing about $300,000 over the course of six years in this business…” (12:32)

• “If I was full time into the parts business, I believe I would be successful with it... But because I was split, it was such a challenge for me.” (16:22)

• “In our Midas business, we have 35 stores… I probably only spend 10, maybe 15 hours per week... But the truth is, I’ve been in this business for almost 10 years. I have worked 70 hours a week... I have earned the right to be where I'm at today.” (19:43)

• “If it’s process driven, anybody can do it and we can get results a lot better.” (21:50)

• “You have to be mentally all in on it.” (25:30)

• “For an investment to work, you can have two parts: you can have a money partner... and you can have an operating partner…” (27:34)

• “Franchising is an amazing vehicle to build wealth and cash flow… but it takes work. It takes effort.” (32:31)

Timestamps for Key Segments

• 00:01 – Brian addresses the common passive-income franchise question
• 01:10 – The truth behind semi-absentee ownership and what people actually want
• 03:12 – Pitfalls of putting only part-time effort into a business
• 04:05 – Why semi-absentee rarely works in sales-heavy, people-heavy, or relationship-driven franchises
• 10:30 – Personal failure story: Losing $300,000 on an auto parts franchise
• 19:43 – What “passive ownership” looks like only after years of grind and business building
• 21:45 – What franchises can actually work for absentee/semi-absentee models
• 25:30 – Importance of being mentally all-in, even if time is limited
• 27:34 – Explaining the money/operator partner model for absentee franchise ownership
• 32:31 – Brian’s closing advice and challenge to passive franchise myths

Conclusion & Final Takeaways

Brian aims to equip would-be franchisees with unfiltered advice: Passive income is possible, but only after serious work, risk, and learning—not from day one. Many business models and personal situations simply aren’t a fit for absentee ownership, and believing otherwise could mean stress and big financial losses. Success hinges on picking the right franchise model, structuring smart partnerships, and—most importantly—being “mentally all in,” even while balancing other commitments.

Brian’s closing challenge:
“What do you think? Am I on the mark or totally off here? I’d love to hear your thoughts in the comments about franchising, and if you think this is a good opportunity.” (34:30)