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For more than a century, iconic franchise brand <a href="https://franchising.awrestaurants.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=executive-qa-with-john-palumbo-senior-director-of-franchise-development-at-aw-2718338" target="_blank" rel="nofollow">A&amp;W Restaurants</a> has experienced consistent growth. Today, the brand boasts more than 500 units in the U.S. and abroad, and it continues to find lucrative white space to establish new locations.&nbsp;In 2022, A&amp;W is aiming to award 25-30 new franchise agreements and open 10–12 new restaurants. We spoke with <a href="https://www.linkedin.com/in/john-palumbo-3373008/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=executive-qa-with-john-palumbo-senior-director-of-franchise-development-at-aw-2718338" target="_blank" rel="nofollow">John Palumbo</a>, senior director of franchise development at A&amp;W, to learn how the franchise continues to grow in both domestic and international markets.&nbsp;<h4>1851 Franchise: What is A&amp;W doing well right now?</h4>John Palumbo: What we are doing well right now is driving same-store sales. We’ve seen same-store sales increase every year for the past decade, including a nearly double-digit increase this year.I think a big part of that growth is our willingness and ability to read the pulse of our franchise partners and prospective franchisees in the industry. We understand the challenges and opportunities of the job, and we’ve built an operation that helps them find success.<h4>1851: What are some of the differentiators that help A&amp;W stand out as a brand?</h4>Palumbo: Even as a 100-plus-year-old franchise, we’re still growing, and that’s a huge strength of our brand. We’re also different in that our brand is owned by our franchise partners. That’s not something you see often in franchising.&nbsp;<h4>1851: What are your growth goals for 2022? What is the vision that you want your brand to fulfill?</h4>Palumbo: Our growth goals for 2022 are to award 25 to 30 new locations and open 10 to 12 new stores.As A&amp;W continues to grow and adapt to the new normal that we’re all living in, we never want to lose sight of what got us to the dance, so to speak. We have a strong connection to our customers and fans, and we never want to lose that. The authenticity of A&amp;W is what makes our customers return. We continue to deliver high-quality food and customer service while offering a small-town feel.<h4>1851: What were some learning opportunities either before or during the pandemic that the brand leveraged to get where it is now?</h4>Palumbo: During the pandemic, and even now, there is an increased focus on doing more with less. Whether it’s fewer employees or navigating changing restaurant layouts because there isn’t an open dining room, we’re figuring out solutions. The pandemic also forced us to think differently with regards to curbside pickup and dual-order-point drive-thrus, which continue to pay off even as dining rooms reopen.<h4>1851: Why did you choose to join A&amp;W as the senior director of franchising?</h4>Palumbo: Honestly, a big part of the decision was the strength of the executive team already in place at A&amp;W.Moreover, I believe in the A&amp;W brand and know it well. It is well established in the U.S. but still has plenty of room to grow, and that’s a valuable combination. But when we look at growth opportunities, we are cautious. That’s something that really drew me to the team. I could tell right away that the brand has a true moral compass when it comes to franchise development. We aren’t just collecting checks and moving on. We are growing carefully to ensure that every franchise owner is set up for success.<h4>1851: What does an ideal franchisee for A&amp;W look like?</h4>Palumbo: Our franchisees work in an owner-operator model, and that’s the type of candidate we look for when awarding franchises. We want someone who will be there every day, or if they can’t be there every day, have a partner who is connected to the business.As far as professional backgrounds, we don’t require them to have prior ownership experience or even experience in food service. We prefer that franchise partners have experience managing people, as well as some familiarity with marketing and a lot of customer service experience. Those traits are important to us. Franchise partners don’t have to be serial business owners, but we want them to work within the parameters of a franchise model. We believe that if you have a good franchisor, they can help train good franchisee candidates. That’s the model we strive for.<h4>1851: How does A&amp;W support its franchise partners?</h4>Palumbo: We’ve been around so long that we really know what we’re doing. On the franchise development side, we have a full-service approach to real estate and financing. We don’t outsource the real estate process; we work closely with our franchise partners to help them secure a location and negotiate the terms of the deal of the lease or purchase. We also help them with financing. It’s not about signing a franchise agreement and sending them out on their own; it’s a hands-on approach to educating new franchise partners. Another example is our international purchasing co-op, Restaurant Supply Chain Solutions, which has shown to be important for profitability and the cost of goods.The total investment necessary to begin operation, not including rent or land costs, is $871,000 to $1,469,554 for a Freestanding Restaurant; $401,000 to $1,051,088 for an Inline Restaurant; and $276,000 to $704,000 for a Captive Restaurant, including a $15,000-$30,000 franchise fee.

Executive Q&A with John Palumbo, Senior Director of Franchise Development at A&W

1851 Franchise

The 100-plus-year-old franchise brand continues to experience same-store sales growth year after year. Palumbo explains how.

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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Franchising has long proven an attractive prospect for independent-minded entrepreneurs seeking ownership. Delivering a proven system – one properly-marketed and tweaked over time – has long been one of the single most powerful franchising hallmarks. But diving into the deep end before learning to swim is risky.&nbsp;Choosing the right option takes preparation and work. So, what is the best franchise to buy for beginners?“There's so much to consider,” says franchise attorney&nbsp;<a href="https://www.linkedin.com/in/mario-l-herman-b9258112a/">Mario Herman</a>. “A big part of my practice is reviewing FDDs and franchise agreements for prospective franchisees. I look for 50 separate things, including inconsistencies between disclosure documents and franchise agreements. And there's a lot of work involved. So, I’d say hire competent counsel with franchise experience.”<h2>Due Diligence</h2>For over three decades as a&nbsp;<a href="https://www.franchise-law.com/mario-l-herman-esq.shtml#">franchise attorney</a>, Mario Herman has represented clients from more than 150 franchise systems, further testifying as an expert witness, and stresses the importance of the due diligence process when pondering the question of what’s the best franchise to buy into for beginners.Before diving in, there’s a number of questions to ponder. What kind of capital, or access to it, do you realistically have? Perhaps a low initial investment is crucial. How involved do you want to be in the daily operation of the franchise – hands-on or semi-absentee? Do you want to build an office or retail setting? Maybe a remote opportunity is best.&nbsp;Performing strong due diligence can go a long way toward ensuring prospective franchisees select the right opportunity.&nbsp;“Yeah, I mean, that's franchising for beginners. There have been books, podcasts and all kinds of stuff written about that,” Herman said. “From issues involving future royalties to the liquidity and capitalization of the franchise – how long they've been in business and how many franchises in the past have terminated or gone out of business. When doing due diligence, contact those who are still in the system and those who are no longer part of it. There are multiple parties, and due diligence with all of them is important. The process typically takes three to six months or more for bigger deals.”<h2>Where To Look</h2>So what is the best franchise to buy for beginners? It’s a big question. Luckily, there’s answers.<h3>Health &amp; Wellness</h3>If it’s the idea of aligned values that makes franchising an attractive opportunity, there are opportunities in the health and wellness sector that play out in a number of settings, ranging from traditional brick and mortar to remote or mobile opportunities, allowing the potential franchisee to deliver a valuable service at the local level. Recovery studios offer the idea of escape in a private, stress-free setting while fitness franchises continue to grow following the pandemic.<a href="https://1851franchise.com/top-10-gym-and-fitness-franchises-the-best-investment-opportunities-for-2025-2729614#stories">Pure Fitness</a> offers a high-value, low-price model in a 24/7 setting which helps build a diverse clientele while delivering health benefits within the community.<h3>Home &amp; Maintenance Services</h3>Touting a recession-resistant nature, home and maintenance services continue to flourish due to aging infrastructure and technological advancements that can protect valuable home investments.With a lower overhead and a more flexible, scalable business model, home and maintenance service franchises offer potential franchise owners a greater work-life balance, boasting home-based options. And unlike other industries,&nbsp;<a href="https://1851franchise.com/the-top-10-home-service-franchises-to-consider-2727601#stories">home services</a> draw consistent demand, allowing for stability while reducing startup costs.&nbsp;The unique combination of stability, lower investment risk and the ability to scale fast can offer a more accessible path to franchise ownership. Access Garage Doors maintains a specialized model, focusing on the installation and repair of garage doors with a low initial investment of about $50,000.<h3>Sustainable, Eco-Friendly</h3>Aligned values have driven many a beginner toward the idea of sustainable, eco-friendly franchise options.In the cleaning sphere, residential and commercial cleaning/janitorial services offer largely remote-based opportunities with lower overhead that provide a valuable, largely recurring revenue stream that’s safe and dependable.Solar energy franchises often require an initial investment starting under six figures, a drastic departure from the nationally-marketed brands that tend to define the idea of franchising for the beginner. Focused on the installation of solar panels for homes and businesses, this rapidly growing realm helps reduce reliance on fossil fuels, encouraging sustainability.<a href="https://1851franchise.com/ecomaids">Ecomaids</a> features professional, non-toxic and eco-friendly home and commercial cleaning services in a primarily mobile setting which lowers overall costs.<h3>Tech-Driven Food &amp; Retail</h3>The quick onset of tech like AI, robotics and automation has begun to upend the restaurant industry experience, increasing efficiency while delivering crucial data to the astute franchise owner – as well as franchisees looking to assess the best franchises to buy in 2026.Some restaurants have experimented with concepts like AI drive-thrus while other franchised chains, especially in the pizza sector, have toyed with the concept of fully automated kitchens, lowering overhead while addressing the tricky idea of staff retention.Domino’s Pizza has utilized robotics to drive consistent production of pizza while enlisting automation as a significant part of the delivery process. Elsewhere, Donato’s has experimented with fully automated kitchens.&nbsp;POS systems simplify while delivering data and in the retail setting while AI can assist with real time inventory and supply chain management, improving logistics while reining in costs.<a href="https://1851franchise.com/batteries-plus-bulbs-community-driven-approach-and-proprietary-products-continue-to-bring-in-returning-customers-2712298">Batteries Plus</a> uses tech to manage an extensive product selection while many chains use it to encourage ideas like ordering online or curbside delivery.<h2>The Takeaway</h2>So, what is the best franchise to buy for beginners? The answer to that question requires a proactive look within, honestly assessing ideas like available funds, desired work-life balance, and preferred location.&nbsp;Proper due diligence can help the prospective franchisee accurately assess opportunities in franchising realms ranging anywhere from health and wellness to eco-friendly cleaning or even the restaurant industry.But as the old adage goes, buyer beware. Teaming with qualified counsel to take a deep dive into any opportunity can go a long way toward properly assessing the best franchises to buy in 2026.“There’s an old saying in franchising: ‘If you can fog a mirror, you can buy a franchise,’” Herman said. “Many people think buying a franchise is like a cookie-cutter system where everything will be done for them – including marketing, basic P&amp;L skills and operations. But you have to maintain costs, labor and compliance with rules and regulations. You really have to be careful.”Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

What is the best franchise to buy for beginners?

What is the best franchise to buy for beginners? Franchise attorney Mario Herman shares expert tips on due diligence, top sectors and avoiding common mistakes.

Executive Q&A with John Palumbo, Senior Director of Franchise Development at A&W

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