The term Manager Run or Manager Operated refers to a franchise model in which the franchisee hires a manager to handle the daily operations instead of running the business personally. This approach allows the franchisee to act as the owner and investor while the manager oversees day-to-day performance and brand compliance.
In a Manager Run franchise, the franchisee takes on the role of owner and strategic overseer, delegating daily management duties to a qualified and trained manager. The manager is responsible for operational execution—such as staff supervision, customer service, inventory control, and adherence to brand standards—while the franchisee remains accountable to the franchisor for overall performance. This model contrasts with an owner-operated franchise, where the franchisee personally runs the location. The Manager Run model is particularly appealing to multi-unit owners or investors who want to expand without direct daily involvement. Franchise Agreements typically include provisions that require franchisor approval of the manager, completion of initial and ongoing training, and adherence to all operational guidelines. In essence, the Manager Operated franchise structure combines investment flexibility with professional management oversight, ensuring both efficiency and compliance.
Additional Definition: A franchise system that does not require the franchisee to be personally involved in the daily operations of the franchised unit on a full-time basis. An operation that is well suited for investors and part-time involvement.
The Manager Operated model evolved as franchising attracted more investors seeking passive or semi-passive business ownership. In the early days of franchising, most systems required owner-operators to ensure commitment and control. As franchise networks expanded and investors sought scalable opportunities, franchisors began accepting trained managers as an alternative to owner presence. Today, industries such as hospitality, automotive, retail, and fitness commonly use Manager Operated and Manager Run frameworks. These models enable multi-unit growth while maintaining the consistency and quality demanded by modern franchisors.
A Manager Operated franchise provides flexibility for investors seeking ownership without daily involvement. By combining professional management with franchisor-approved systems, this model supports scalability, operational efficiency, and brand consistency while maintaining the franchisee’s ultimate responsibility under the Franchise Agreement.
