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In the U.S., the Singer Sewing Machine Company is&nbsp;<a href="https://www.franchise.org/blog/the-history-of-modern-franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chapter-1-introduction-to-franchising-what-every-entrepreneur-should-know-2722554" target="_blank" rel="nofollow">often linked to franchising</a>. However, the company did not offer franchises as we view them today. Instead, in 1851, it grew by constructing local offices that were independently managed by their respective employees. According to the International Franchise Association, the first modern-day franchisor was likely Martha Matilda Harper, a Canadian-American who began to franchise the Harper Method Shops in 1891.By the time the franchise model that we know today was up and running, the Second Industrial Revolution had already started (<a href="https://www.investopedia.com/terms/i/industrial-revolution.asp?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chapter-1-introduction-to-franchising-what-every-entrepreneur-should-know-2722554#:~:text=The%20American%20Industrial%20Revolution%2C%20sometimes,%2C%20the%20automobile%2C%20and%20airplanes." target="_blank" rel="nofollow">in the 1870s</a>). This created the perfect environment for the franchise industry to explode with manufacturing, automotive and beverage industries embracing the model.&nbsp;Now, as the model has increased in popularity over the last 100-plus years, franchises are everywhere. In the U.S. alone, there are&nbsp;<a href="https://www.statista.com/statistics/190313/estimated-number-of-us-franchise-establishments-since-2007/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chapter-1-introduction-to-franchising-what-every-entrepreneur-should-know-2722554" target="_blank" rel="nofollow">around 790,000 franchise establishments</a>.“I think when people finally start to look for a business, they’re looking within a certain field for any that are available to purchase from an existing listing standpoint,” explained&nbsp;<a href="https://www.linkedin.com/in/tiptonshonkwiler/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chapter-1-introduction-to-franchising-what-every-entrepreneur-should-know-2722554" target="_blank" rel="nofollow">Tipton Shonkwiler</a>, president of&nbsp;<a href="https://www.accuratefranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chapter-1-introduction-to-franchising-what-every-entrepreneur-should-know-2722554" target="_blank" rel="nofollow">Accurate Franchising</a> and managing director of the Consulting Division of&nbsp;<a href="https://unitedfranchisegroup.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chapter-1-introduction-to-franchising-what-every-entrepreneur-should-know-2722554" target="_blank" rel="nofollow">United Franchise Group</a>. “That’s when they uncover that the business they’re interested in is actually a franchise.”<h3>What Franchising Means for Business</h3>Franchises benefit all sides of the business world. For franchisees, the model makes business ownership far more accessible, meaning individuals can bring passion, curiosity and a reasonable initial investment to the table to launch their entrepreneurial journeys rather than working tirelessly (and often alone) to build a brand from the ground up.“Franchising in general has been a great wealth-creator at both the franchisor and franchisee level,” said Shonkwiler. “It’s a great business model; it really is. It’s a great way to exit, as well. If someone is looking to develop their brand into a franchise, that’s a great way to have something to do for 10–15 years, and it places them in a much greater place to exit later on.”For franchisors, the ability to leverage the passion and dedication of these same local owners is also a great advantage. Many giant brands, though well-resourced, simply cannot expand at the rate they do when offering franchises. Plus, having a local owner with boots on the ground can make a huge difference in local consumers’ experience of the concept.&nbsp;<h3>What Is Franchising, Really?</h3>In the simplest terms, the franchise business model is based on a franchise agreement. Though the details of said agreement will vary between brands, the basis remains steady: the franchisee pays a franchise fee and ongoing royalties in addition to their baseline time and capital investments. In exchange, the franchisor provides support, expertise and brand recognition to drive each local owner’s growth.The key components of the franchise model include:<ul><li>Application Process:&nbsp;To protect the strength of the brand, franchisors must carefully evaluate prospective investors. Most application processes will include questions about the prospect’s net worth, liquidity, financing plans and history with business ownership. Some franchisors will also spend a substantial amount of time or effort evaluating how the prospect may fit with the existing culture of the brand.</li><li>Franchise Disclosure Document (FDD):&nbsp;Franchisors typically provide this document during the due diligence stage. Each year, FDDs are put together based on the brand’s performance and any changes that happened in the previous year. Often, a franchise attorney will help with this process. Once complete, the FDD is an invaluable resource for prospects.</li><li>Franchise Agreement:&nbsp;If everything goes well and all parties agree with the partnership, the franchisee will be offered a franchise agreement. This is the document they will sign that serves as a binding contract between them and the franchisor. These agreements typically outline the rights and responsibilities of the franchisor and franchisee in each respective role.</li><li>Training and Support:&nbsp;As a crucial part of the franchise model, the franchisor should provide training and other support programs or manuals to the franchisee. Commonly covered topics include leadership, marketing, brand standards, operational best practices, hiring, sales and business development.</li></ul>“Franchisees can get started a lot quicker because of some of those benefits,” said Shonkwiler. “Certainly, someone would also want to consider how they are with operating someone else’s business model. What kind of mindset do I have? Do I align with that? They need to weigh that against how much it would cost and how much time it would take from a ramp-up standpoint to start on their own.”<h3>Who Wins in Franchising?</h3>Optimally everyone wins in franchising. With a healthy business model, franchisors can embrace rapid growth while supporting the entrepreneurship of local business owners. When a franchisor takes the time to evaluate its own ability to develop support systems prior to launching the franchise model, the system is more likely to succeed. For entrepreneurs looking to expand their own existing business, franchising should not be viewed as an “easy out” though. While the franchise model is a great driver for growth, it is not without demands.“Some franchisors go out there and start selling franchises,” said Shonkwiler. “They’re focused on that but not focused on taking care of what they’ve already sold. You never want a franchisee to feel like they’re on an island. You want to have that ongoing engagement between the franchisee and franchisor; that’s how you properly do it.”Maintaining engagement and keeping lines of communication open benefits both franchisees and franchisors. With a strong relationship and alignment of goals, franchisees can serve as powerful advocates for franchise brands within their own communities, driving both parties toward success.“The franchisor also needs to get to know someone and make sure they’ve laid out the company vision and what they want in a franchisee so that they can properly set that tone,” he added. “In a franchise agreement, you’re entering into, sometimes, upwards of a 35-year agreement, so you really want to make sure you’re making the right decision on both sides of the fence.”

Chapter 1: Introduction to Franchising: What Every Entrepreneur Should Know

1851 Franchise

Franchising is widely recognized as a great wealth builder, but its role in the business world is much further-reaching.

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Strategic Franchising

Franchise Resale Opportunities: Buying an Existing Unit vs. Starting Fresh

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Beansquad

BeanSquad Reports Strong Q1 2026 Growth, Adding Nearly 80 Clients and Expanding Industry Reach

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Extraordinary Brands

CycleBar Franchisees Celebrate 10 Years of Impact From Beachwood, Ohio to Berkeley, California

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Why Franchise Brands Stall After Launch, and the Playbook to Start Scaling Again

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Children's Lighthouse

Children’s Lighthouse to Exhibit at The National Franchise Show in Orlando, Showcasing Growth Across Florida

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Prince St. Pizza Partners With Dave’s Hot Chicken Franchisee for National Growth

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FTC Settlement Puts New Focus on Franchise Disclosure Standards - 1851 Franchise

FTC Settlement Puts New Focus on Franchise Disclosure Standards

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Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units - 1851 Franchise

Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units

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Why Skilled Trades Are Emerging as the Economy’s Most AI-Resilient Careers

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The Penny Shortage Is Creating a New Risk for QSR Franchise Systems - 1851 Franchise

The Penny Shortage Is Creating a New Risk for QSR Franchise Systems

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<a href="https://princestreetpizza.com/">Prince St. Pizza</a> has partnered with a&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-daves-hot-chicken-franchise-costs-fees-profit-and-data-2723529">Dave’s Hot Chicken</a> franchisee to support its national expansion,&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">Pizza Marketplace recently reported</a>. The New York-based brand has joined forces with&nbsp;<a href="https://www.linkedin.com/in/lawrencekourie/">Lawrence Kourie</a>, founder and largest franchisee of Dave’s Hot Chicken, to grow its footprint across the country. Kourie’s experience opening and operating locations in multiple markets will help the brand as it enters new territories."Lawrence has built and operated one of the fastest-expanding restaurant concepts in the country, but what stands out is his disciplined approach to growth and brand integrity," said&nbsp;<a href="https://www.linkedin.com/in/lawrence-longo-342856/?skipRedirect=true">Lawrence Longo</a>, CEO of Prince St. Pizza. "He understands how to develop a concept without losing what made it special in the first place, which is critical as we enter this next phase."The expansion will use Kourie’s existing infrastructure and operations to introduce Prince St. Pizza into new markets. Each location will aim to reflect the same experience as the brand’s original Nolita shop."I have spent years evaluating restaurant concepts, and it is rare to find one that delivers both a strong product and a clear identity," Kourie said. "What Prince St. has built is difficult to truly replicate. The focus now is on growing the brand in a way that preserves that foundation while introducing it to new communities."Kourie is a key operator within the Dave’s Hot Chicken system,&nbsp;<a href="https://1851franchise.com/daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion-2729557#stories">which Roark Capital acquired in a $1 billion deal in 2025</a>. The partnership connects Prince St. Pizza to an operator with experience scaling a brand that has attracted major private equity investment.Read the full article&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Prince St. Pizza is teaming up with a leading Dave’s Hot Chicken franchisee to expand nationwide, tapping proven operator experience to drive growth.

North County Pizza Inc., a major&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dominos-pizza-franchise-costs-fees-profit-and-data-2725506">Domino’s</a> franchisee, has filed for Chapter 11 bankruptcy protection,&nbsp;<a href="https://finance.yahoo.com/news/major-pizza-chain-franchisee-files-173300667.html">Yahoo! Finance recently reported</a>. The bankruptcy filing gives North County Pizza time to restructure its debt and reorganize its business, while pausing any legal actions against the company during the process.The Oceanside, California-based franchisee did not explain why it filed for bankruptcy or whether it plans to close locations or lay off employees. Franchisees across the restaurant industry have pointed to tough competition, higher labor and food costs, and expensive leases as reasons for restructuring or filing for bankruptcy.The franchisee filed for bankruptcy on March 11 in the U.S. Bankruptcy Court for the Southern District of California, reporting $100,000 to $1 million in assets and $1 million to $10 million in liabilities.The announcement follows recent news that&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-papa-johns-franchise-costs-fees-profit-and-data-2724607">Papa Johns</a> plans to close 300 underperforming restaurants, including 200 by the end of 2026, and cut 7% of its workforce. It also comes just weeks after&nbsp;<a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/">Yum! Brands</a> announced it was&nbsp;<a href="https://1851franchise.com/yum-brands-pizza-hut-sale-2731599#franchise-news">considering a sale of Pizza Hut</a> and plans to close 250 underperforming U.S. locations.Together, these moves could point to a broader reset across the pizza franchise sector. For franchisees, this environment raises the stakes around site selection, cost control and operational efficiency, while also creating potential opportunities to capture market share as weaker locations exit the market.Read the original article <a href="https://finance.yahoo.com/news/major-pizza-chain-franchisee-files-173300667.html">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit<a href="http://www.1851growthclub.com">&nbsp;www.1851growthclub.com</a> and start your journey.

Large Domino’s Franchisee Files for Chapter 11 Bankruptcy

The California-based franchisee seeks to restructure debt as closures and strategic shifts continue across major pizza brands like Pizza Hut and Papa Johns.

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<a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/">Yum! Brands</a> is considering a potential sale of Pizza Hut and plans to close 250 underperforming U.S. locations, according to a&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">recent article on Simply Wall St</a>. For the franchising industry, the significance is less about the stock and more about what it says about how large franchisors are managing brand portfolios in a high-cost operating environment.<a href="https://1851franchise.com/pizza-hut-franchise-deep-dive-2722519">Pizza Hut</a> is one of the most recognizable names in franchising. If Yum! decides to sell it, that would be a notable shift for a company built on a multi-brand platform. For years, large brand groups have argued that operating multiple concepts creates advantages, including shared resources, stronger purchasing power and the ability to invest in technology across the system. A sale would suggest Yum! believes those benefits no longer outweigh the effort required to improve Pizza Hut’s performance.The planned closures may have the most immediate impact on franchisees. When a franchisor reduces its footprint, it can change how the brand performs in local markets. Fewer locations can mean less convenience for customers, which can hurt overall traffic. It can also weaken the effect of local advertising when there are fewer restaurants supporting promotions in the same trade area.Closures can also affect store-level economics in ways that go beyond the locations that shut down. In some markets, remaining franchisees may pick up some displaced demand. In others, customers may switch to competitors. The changes can also affect local co-op advertising budgets and, depending on how purchasing and distribution are structured, can influence costs tied to volume.The move comes as competition in pizza remains intense, with&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dominos-pizza-franchise-costs-fees-profit-and-data-2725506">Domino’s</a> and&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-papa-johns-franchise-costs-fees-profit-and-data-2724607">Papa Johns</a> continuing to push delivery, digital ordering and value-focused offers. Simply Wall St notes Yum! has been rolling out its Byte digital platform across brands. If Yum! changes Pizza Hut’s role in the portfolio, it could also change where the company focuses its technology and marketing investment.For franchise systems watching from the outside, Yum!’s review is a reminder that growth is not always the main priority. Sometimes the bigger decision is whether a legacy brand can be improved inside a platform or whether it will perform better under a different owner and a different plan.Read the original article&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">here</a>.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.

Yum! Brands Pizza Hut Sale - 1851 Franchise

Yum! is reviewing the brand and closing 250 U.S. locations, a move that could affect franchisees and reshape its restaurant portfolio.

Possible Pizza Hut Sale Signals Shift in Yum! Brands’ Franchise Strategy

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The&nbsp;<a href="https://www.franchise.org/">International Franchise Association</a> has released its annual&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">Franchising Economic Outlook</a> report for 2026, painting the picture for a positive year of growth after notable economic turbulence in 2025.“The resilience of franchising has enabled our model to adapt, endure and thrive in the face of challenging macroeconomic headwinds,”&nbsp;<a href="https://www.linkedin.com/in/matthewhaller">Matt Haller</a>, IFA president and CEO, said in a release. "After a year of recalibration, franchising is better positioned to navigate an improving economic environment than independent businesses due to tax certainty, lower interest rates and investments in AI that will propel brand growth, franchisee unit-level economics and wage growth for the franchise workforce."The report features key industry projections for the year, including:<ul><li>The addition of over 12,000 new franchised businesses</li><li>The addition of over 150,000 jobs — meaning the industry will represent nearly 8.9 million jobs</li><li>An increase in total franchise GDP from $549.9 to $558.4 billion</li><li>An increase in multi-unit ownership as current single-unit franchisees pursue scale</li></ul>In addition to the strength of the industry as a whole, the organization highlighted segment-specific trends.&nbsp;<ul><li>This year, child services and commercial and residential services are recognized as top performers, expected to achieve a 3.2% year-over-year growth rate.</li><li>A focus on experiential dining, rather than value alone, may drive full-service restaurants to outpace quick-service brands in output growth.</li><li>Preventive health care has risen to be the third-largest franchised industry, and it represents strong opportunities as consumer awareness surrounding preventive health care persists.</li></ul>In terms of growth markets, Texas continues to lead the country as the fastest-growing state for franchising, followed by Florida, Georgia, Arizona and North Carolina. Michigan, Ohio and Utah have joined the top 10 this year thanks to their relative affordability and the potential they offer for market leadership and long-term growth.The outlook for 2026 is upbeat, and the drivers behind it look different than they did a few years ago. More brands are putting AI and automation to work in day-to-day operations, which helps franchisees move faster on basics like scheduling and inventory and stay tighter on margins.The growth in multi-unit ownership points to a shift in how people are approaching franchising. More operators are treating it like a scalable investment, focused on building an asset, not just buying themselves a job.As the year ramps up, IFA’s data suggests growth in 2026 will be driven by those leveraging the scale of the franchise model, embracing a tech-forward approach to business ownership, and staying agile in an evolving business landscape.Find the full 2026 Franchising Economic Outlook report&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">here</a>.

Highlighting child services and commercial and residential services as top performers, the organization predicts the industry will add over 150,000 jobs and increase its GDP by billions this year.

IFA Releases 2026 Franchising Economic Outlook Report, Predicting Over 12,000 New Franchised Businesses This Year

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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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Franchise Opportunity Deep Dive: A fast-casual restaurant brand serving made-from-scratch sandwiches, salads, soups and pizzas rooted in Southern hospitality.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

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Amada Senior Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Amada Senior Care is a non-medical home care, assisted living placement, and related senior-support services with multiple revenue streams.

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Visiting Angels Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Visiting Angels is a senior home care franchise focused on in-home support for seniors and individuals with disabilities.

visiting-angels-franchise-costs-fees-profit

Big O Tires Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Big O Tires is a full-service auto care franchise offering tires, brake repair, alignments, oil changes and preventive maintenance under a nationally recognized brand.

franchise-deep-dive-big-o-tires-franchise-costs-fees-profit-and-data

BrightStar Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: BrightStar Care is a home health care franchise that provides both medical and non-medical services.

Chapter 1: Introduction to Franchising: What Every Entrepreneur Should Know

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