1851

Franchising offers a wide variety of benefits, but like any business venture, the primary goal is profitability. The million-dollar question, literally and figuratively, is just how much money can you make in franchising?Unfortunately, this information is rather difficult to find. According to a survey done by <a href="https://www.franchisedirect.com/information/how-much-do-franchise-owners-make?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-you-get-rich-owning-franchises-2715618#:~:text=On%20average%2C%20franchise%20owners%20in,dollars%20and%20a%20million%20dollars" target="_blank" rel="nofollow">Franchise Business Review</a>, the average pre-tax annual income of franchise owners in the U.S. is about $80,000. However, only 7% of franchise owners earn over $250,000 per year with 51% earning less than $50,000.<a href="https://www.oakscale.com/post/how-much-money-can-you-make-owning-a-franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-you-get-rich-owning-franchises-2715618#:~:text=If%20you%20Google%20the%20national,%2450%2C000%20to%20%24200%2C000%2B%20per%20year" target="_blank" rel="nofollow">Franchisors legally cannot provide income amounts</a> or projections of future income. This is more of a protection for the franchisor as they can’t guarantee the same performance for every franchisee.Instead, prospective franchisees are advised to check out a franchisor’s <a href="https://1851franchise.com/how-to-make-sense-of-item-19-in-an-fdd-2714788">Item 19</a>, the section of its franchise disclosure document (FDD) that outlines the brand’s financial performance. The Item 19 usually includes both gross and net numbers so franchisees have a more realistic idea of the brand’s potential.Industry surveys and studies provide a glimpse into potential earnings. Here are some things to keep in mind when you’re looking at franchise ROI.<h4>Profit vs. Initial Investment</h4>Your earnings potential as a franchise owner depends largely on the brand and industry.Franchise owners in the restaurant industry earn an <a href="https://www.franchise.city/money-franchise-owners-make?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-you-get-rich-owning-franchises-2715618" target="_blank" rel="nofollow">average of $82,000</a> per year, which is pretty solid considering the <a href="https://pos.toasttab.com/blog/on-the-line/how-much-do-restaurant-owners-make?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-you-get-rich-owning-franchises-2715618" target="_blank" rel="nofollow">salary range of a non-franchise restaurant owner</a> can range from $24,000 to $155,000.Startup costs, however, can range anywhere between $100,000 to millions of dollars.A Chick-Fil-A franchise, for example, generates $4.1 million on average annually with <a href="https://1851franchise.com/how-much-does-a-chick-fil-a-franchise-cost-2715278">an initial investment of $10,000</a>. Dunkin’ Donuts locations bring in about $974,000 annually on the low end with startup costs ranging from $465,000 to 1,597,000.&nbsp;The results are vastly different when you look at other industries. The single highest-grossing cleaning franchise generates <a href="https://www.franchise.city/money-franchise-owners-make?utm_source=1851franchise.com&utm_medium=article&utm_campaign=can-you-get-rich-owning-franchises-2715618" target="_blank" rel="nofollow">$1.3 million per year</a> with an initial investment of $150,000 to $200,000. And one of the leading staffing franchises generates $6,500,000 on average annually per franchise with an initial investment of $150,000.<h4>Request an FDD with and Item 19</h4>For potential franchisees doing research, this lack of financial information can be frustrating. If you’re looking to buy a franchise, start by requesting an FDD and prioritize those that include an Item 19. That way, you can have a fuller picture of other franchisee performance and a baseline with which to start.

Can You Get Rich Owning Franchises?

1851 Franchise

Earnings potential as a franchise owner varies widely among brands and industries. Here are some things to keep in mind when considering the ROI of franchise investment. 

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Home Halo

Home Halo’s 160-Step Launch Process: Setting Franchisees Up for Success

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VA Reimbursement: A Unique Opportunity for Home Halo Franchisees

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Home Halo’s "Frank" Method: Coaching Franchisees to Greatness

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Dan Deak's Personal Journey: From Caring Son to Home Halo CEO

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10 Reasons Why You Should Invest in a Home Halo Franchise

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Dave’s Hot Chicken Sold to Roark Capital in $1 Billion Deal to Fuel Global Expansion

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Homebuyers Keep Buying — And That’s Good News for Home Service Franchises - 1851 Franchise

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What You Need To Know About Low-Cost Franchise Opportunities

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Sola Salons Franchisee Grows Salon Freedom Into a Multi-State Powerhouse 

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Dan Yangas Brings Family Flooring Legacy Full Circle With Footprints Floors Franchise in Naperville 

Dan Yangas Brings Family Flooring Legacy Full Circle With Footprints Floors Franchise in Naperville, Illinois

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From Tech to Transitions: Why This Caring Transitions Franchisee Left the Corporate World To Help Families Navigate Life’s Hardest Moves

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Can You Get Rich Owning Franchises?

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