1851

Unemployment claims for the week of December 7 <a href="https://www.bls.gov/opub/update.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=covid-19-and-high-unemployment-set-up-2021-for-franchise-sales-feeding-frenzy-2714528" target="_blank" rel="nofollow">came in at 885,000</a>, higher than the 800,000 predicted by economists, and a growing mountain of evidence suggests that high unemployment, increased skilled-labor availability, easy access to capital and historically low mortgage rates could combine to make 2021 the year of franchise sales.&nbsp;In total, the U.S. still has 10.7 million unemployed workers due to the COVID-19 crisis. This week’s higher-than-expected jobless numbers show that the U.S. isn’t out of the woods yet on a pandemic-related economic downturn, even as <a href="https://1851franchise.com/covid-19-vaccine-what-it-means-for-the-pizza-and-fast-food-boom-2714504#editorials">vaccines for the virus start to make the rounds</a>.&nbsp;But while much of the U.S.’s economic prospects look bleak, one market sector has emerged a champion: franchising.&nbsp;Franchise businesses have <a href="https://1851franchise.com/franchising-remains-a-safe-bet-for-private-equity-investments-post-covid-19-2712922">weathered the economic shock of the COVID-19 crisis</a> demonstrably better than their independent counterparts. In the last great market crash, franchising <a href="https://www.nbcnews.com/id/wbna47507876?utm_source=1851franchise.com&utm_medium=article&utm_campaign=covid-19-and-high-unemployment-set-up-2021-for-franchise-sales-feeding-frenzy-2714528" target="_blank" rel="nofollow">outperformed other sectors by leaps and bounds.</a>Counterintuitive as it may be, the glut of unemployed professionals across the country could set up a franchise sales feeding frenzy. Here’s what the franchising industry should expect going into 2021.&nbsp;<h4>Brace For Turbulence — And Franchise Sales</h4>ExxonMobil, Chevron, Charles Schwab, Raytheon, Wells Fargo, Goldman Sachs, Salesforce, Maersk, WarnerMedia, Regal Theaters — these are just a few of the companies contributing to an <a href="https://www.cnn.com/2020/10/30/business/jobs-white-collar-layoffs/index.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=covid-19-and-high-unemployment-set-up-2021-for-franchise-sales-feeding-frenzy-2714528" target="_blank" rel="nofollow">avalanche of white collar layoffs</a>.&nbsp;While job losses have mostly impacted lower income, less skilled labor, the unemployment rate for those with college experience has <a href="https://www.bls.gov/charts/employment-situation/unemployment-rates-for-persons-25-years-and-older-by-educational-attainment.htm?utm_source=1851franchise.com&utm_medium=article&utm_campaign=covid-19-and-high-unemployment-set-up-2021-for-franchise-sales-feeding-frenzy-2714528" target="_blank" rel="nofollow">more than doubled</a> from 3% in February to 6.3% in November.&nbsp;Thursday’s poor unemployment numbers show that recovery has slowed, and career uncertainty, even for educated, white-collar professionals, remains high.&nbsp;“When unemployment increases, turbulence for those employed also increases,” said Nick Powills, publisher of 1851 Franchise. “When turbulence increases, people start looking for what’s next. This is where franchise brands shine — in that people who have saved a little money all the way up to those who have saved a ton, land in a mindset where they can become their own boss within the structure of an already built business as their own what’s next.”As early into the crisis as April, researchers identified the pandemic as a <a href="https://theconversation.com/the-coronavirus-crisis-a-catalyst-for-entrepreneurship-135005?utm_source=1851franchise.com&utm_medium=article&utm_campaign=covid-19-and-high-unemployment-set-up-2021-for-franchise-sales-feeding-frenzy-2714528" target="_blank" rel="nofollow">“catalyst for entrepreneurship.”</a><h4>2021: The Year of The Franchise?</h4>In 2008, the year after the housing market crash, franchise brands dominated. In 2021, the year after the pandemic crash, a perfect storm of economic conditions may set the market for an unprecedented boom in franchise sales.“2021 has a very good chance to be the best year for franchise sales ever,” <a href="https://www.ifranchisegroup.com/our-consultants/mark-siebert/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=covid-19-and-high-unemployment-set-up-2021-for-franchise-sales-feeding-frenzy-2714528" target="_blank" rel="nofollow">Mark Siebert, CEO of iFranchise Group</a> said. “It’s somewhat callus to say, but in franchising, nothing beats a good recession.”In 2008, the housing market <a href="https://www.investopedia.com/articles/economics/09/subprime-market-2008.asp?utm_source=1851franchise.com&utm_medium=article&utm_campaign=covid-19-and-high-unemployment-set-up-2021-for-franchise-sales-feeding-frenzy-2714528" target="_blank" rel="nofollow">tanked 40% while the stock market took a 30% dive</a>. This left millions of Americans asset-poor. In 2021, the opposite is true.&nbsp;“Unlike the 2008 recession, you’ve got a much better availability of credit, historically low interest rates and asset values that have actually increased,” said Siebert. “In 2008 you saw massive drops in stock and housing prices. Today, housing prices have increased 4.3% year-to-date, and the stock market is setting new records every day.”This means many of the 10 million Americans experiencing unemployment right now have assets they can tap into to invest in a franchise. Americans can leverage their homes, their 401(k)s, and their savings to buy into a proven business model at historically low rates.&nbsp;Uncertainty around the virus, the primary limiting factor in franchise sales cited by dozens of franchising professionals interviewed by 1851, remains perhaps the only thing keeping the floodgates shut on the surging tide of interest in franchising.For large operators in the franchise space already, the time to move is now. With <a href="https://1851franchise.com/national-restaurant-association-survey-finds-17-of-all-us-restaurants-closed-in-economic-free-fall-2714475#editorials">110,000 restaurants closed</a> across the country, there’s no shortage of prime retail space available.&nbsp;“You’ve got a large number of people who are multi-unit franchise owners for retail operations looking at a perfect time to buy. These operators are looking at the franchise space and thinking ‘I can get prime locations at below market rates;” said Seibert. “From a franchise sales standpoint, companies with a concept that works are seeing maybe the best environment they could ask for.”<h4>“Blood In The Water”</h4>While franchise sales have every reason to boom in 2021, not all franchises are created equal.&nbsp;“There’s a lot of blood in the water. It’s a great year for franchise sales, but not a great year for franchising completely,” said Siebert. “There are a lot of failed franchisors whose concepts did not adapt fast enough.”While a rising tide may lift all boats, an unsound hull is sure to sink. Movie theaters may not come back as strong as they did before, but brands in the restaurant industry have proven more than capable of pivoting to a new post-pandemic reality.&nbsp;As always, brands that succeed in telling a story and connecting with customers will outlive those who don’t.&nbsp;“The brands that have clearly defined their why them/why now and have deployed it effectively are there to scoop up these next franchisees, said Powills. “A turbulent economy is good for franchising.”

COVID-19 and High Unemployment Set Up 2021 For Franchise Sales Feeding Frenzy

1851 Franchise

A historically large pool of unemployed professionals could result in a surge in franchise sales. Here’s what the industry should expect going into 2021.

covid-19-and-high-unemployment-set-up-2021-for-franchise-sales-feeding-frenzy

Melting Pot

image of Randy Barnett Chief Technology Officer at the melting pot

Melting Pot’s Technology Combines a Modern Edge With a Hospitality Spirit

cto-randy-barnett

Biscuit Belly Franchising

image of andrew and Rachel Adams, franchise owners from Biscuit Belly 

Entrepreneur: They Said No to 24/7 Restaurants —Then Found Their Dream Franchise

franchise-story-andrew-rachel-adams

Caring Transitions

Is Now the Best Time to Invest in a Senior-Focused Franchise?

is-now-the-best-time-to-invest-in-a-senior-focused-franchise

Children's Lighthouse

An Inside Look at Children’s Lighthouse Franchise Conference Recap and Award Winners

an-inside-look-at-childrens-lighthouse-franchise-conference-recap-and-award-winners

What the First 90 Days Look Like as a New Caring Transitions Franchise Owner

what-the-first-90-days-look-like-as-a-new-caring-transitions-franchise-owner

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

The Top 10 Low-Cost Franchises With High ROI 

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

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

prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-growth

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

FTC Settlement Puts New Focus on Franchise Disclosure Standards

franchise-disclosure-violations-xponential-fitness-lawsuit-ftc

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

applebees-franchisee-bankruptcy-neighborhood-restaurant-partners

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

ai-skilled-trades-authority-brands

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

penny-shortage-restaurants-franchise-compliance

<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.

<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

yum-brands-pizza-hut-sale

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.

large-dominos-franchisee-files-for-chapter-11-bankruptcy

Artificial intelligence is changing how work gets done in industries ranging from finance and customer service to software development. As that shift accelerates, more professionals are asking which careers will hold up best over time. New research suggests the answer may be found in an unexpected corner of the economy: the skilled trades.<a href="https://www.anthropic.com/research/labor-market-impacts">A recent study</a> from&nbsp;<a href="https://www.anthropic.com/company">Anthropic</a> analyzing real-world AI usage across occupations found that the roles most exposed to automation are concentrated in white-collar, information-based professions such as computer programming, data entry and financial analysis. By contrast, many occupations requiring physical skill, real-world diagnostics and on-site service remain far less exposed to AI automation.For industries built around hands-on work - including plumbing, HVAC, electrical services and restoration - the findings reinforce what operators across the trades have long understood: while artificial intelligence can assist with planning and data analysis, it cannot replace the skilled technicians who keep homes and businesses running.<h2>The Limits of Automation in Physical Work</h2>The Anthropic research introduces a new metric called “observed exposure,” which combines theoretical AI capabilities with real-world usage patterns. While many digital tasks show high exposure to automation, a significant share of occupations still have little or no measurable AI coverage.In fact, roughly 30% of workers in the study had jobs with no observable AI exposure at all. Many of those occupations involve physical labor or real-time problem solving in unpredictable environments - the kinds of tasks that cannot easily be automated through software.Repairing a failing HVAC system, diagnosing a plumbing leak or troubleshooting an electrical panel requires a combination of technical expertise, situational awareness and physical presence. These factors make the skilled trades structurally different from many information-based roles currently seeing higher levels of automation exposure.At the same time, according to research outlets like the CSIS, the demand for skilled trades&nbsp;<a href="https://www.csis.org/analysis/genais-human-infrastructure-challenge-can-united-states-meet-skilled-trade-labor-demand">continues to grow.</a> Aging housing stock, expanding suburban development and increased homeownership have created sustained demand for professional home services across the United States.<h2>AI Is Augmenting the Trades - Not Replacing Them</h2>While the trades may be resistant to direct automation, that does not mean they are untouched by technological change. In fact, many service businesses are adopting new digital tools to improve operations, streamline scheduling and provide better customer experiences.Artificial intelligence is playing more of a support role in the trades than a replacement role. Scheduling tools can help optimize routes, cut down drive time and improve response speeds, while automated call systems can handle customer inquiries and dispatch requests more efficiently. Data platforms also give franchise owners greater visibility into business performance, helping them manage teams and improve service quality.<a href="https://www.linkedin.com/in/steve-clemente-b4244539/">Steve Clemente</a>, president and chief operations officer of trade brands at&nbsp;<a href="https://www.authoritybrands.com/">Authority Brands</a>, says this shift reflects a broader evolution happening across the home services sector.“Artificial intelligence isn’t replacing skilled tradespeople - it’s helping business owners operate more efficiently,” Clemente said. “Technology can streamline scheduling, improve communication with customers and give owners better visibility into their businesses. But the work itself still depends on trained technicians solving real problems in real homes.”<h2>Technology Supporting a Growing Workforce</h2>Authority Brands, one of North America’s leading home services franchisors, supports more than 1,000 franchise owners operating across over 2,700 territories through brands including&nbsp;<a href="https://benjaminfranklinplumbingfranchise.com/">Benjamin Franklin Plumbing</a>,&nbsp;<a href="https://mistersparkyfranchise.com/">Mister Sparky Electric</a>,&nbsp;<a href="https://onehourheatandairfranchise.com/">One Hour Heating &amp; Air Conditioning</a> and&nbsp;<a href="https://drymedicfranchise.com/">DRYMedic Restoration</a>.Across the system, technology platforms are increasingly being used to support franchise owners as they grow their businesses and manage complex operations.Digital platforms allow service teams to track jobs in real time, analyze performance metrics and communicate more effectively with customers. These tools help franchise owners scale their businesses while maintaining consistent service standards across markets.At the same time, the human element remains central to the industry. While Authority Brands continues to invest in technology tools, there is an equal emphasis on training and resources that ensure technicians are prepared to perform at a high level in the field. Diagnosing mechanical failures, responding to emergency repairs, and building trust with homeowners still requires the kind of judgment and experience that can only be developed through hands-on training and real-world application.“Technology gives operators better tools, but the foundation of the business is still the technician in the field,” Clemente said. “The trades combine technical skill, physical work and customer experience - and that combination is very difficult for automation to replicate.”<h2>A Career Path Gaining New Attention</h2>As concerns about automation grow in white-collar industries, the resilience of the trades is beginning to attract broader attention.Anthropic’s research suggests that many of the occupations most exposed to AI are also among the most educated and highest paid professions today - raising new questions about long-term job security in those fields.The skilled trades, meanwhile, are dealing with a different issue: not enough workers. Industry groups and labor forecasts continue to show a need for hundreds of thousands of additional technicians in the coming decade as veteran workers retire and service demand keeps growing.For many professionals exploring career transitions or business ownership opportunities, the trades are becoming an increasingly attractive option.“The home services industry has always been essential, but we’re seeing more people recognize the long-term stability it offers,” Clemente said. “These are businesses rooted in local communities, solving problems that homeowners will always have. Technology can make the work more efficient, but the demand for skilled technicians isn’t going away.”<h2>A Technology-Enabled Future for the Trades</h2>If anything, the rise of artificial intelligence may reinforce the long-term importance of skilled trades rather than diminish it.While digital technologies will continue to reshape how service businesses operate, the work itself will remain deeply human. Skilled technicians will continue to diagnose problems, install systems and maintain the infrastructure that modern life depends on.In that sense, the future of the trades may represent a powerful example of how technology and human expertise can work together.&nbsp;As automation advances across the broader economy, the industries that combine technical skill, physical work and customer service may prove to be among the most resilient of all.For more information on franchise trends, check out these related articles on 1851 Franchise:<ul><li><a href="https://1851franchise.com/ai-is-reshaping-franchising-100-billion-valuations-and-hyper-localized-advertising-2729847#stories">AI Is Reshaping Franchising: $100 Billion Valuations and Hyper-Localized Advertising</a></li><li><a href="https://1851franchise.com/ai-unemployment-impact-white-collar-job-loss-2729492#stories">AI Could Push Unemployment to 20% — Fueling a Surge in First-Time Franchise Buyers</a></li><li><a href="https://1851franchise.com/2026-layoffs-corporate-escapee-franchise-opportunities-2731323#stories">Mass Layoffs Are Destabilizing the Labor Landscape; Corporate Escapees May Turn to Franchising as Their Next Step</a></li></ul>

Research from Anthropic shows that hands-on careers requiring physical skill and real-world diagnostics remain far less exposed to AI automation than many white-collar professions. 

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

how-much-can-franchisees-make-a-guide-expert-tips

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.

amada-senior-care-franchise-costs-fees-profit

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

newks-eatery-franchise-costs-fees-profit

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

Is franchising better than starting a business from scratch? For many&nbsp;<a href="https://1851franchise.com/a-beginners-guide-to-franchising-how-the-model-works-2724686">prospective entrepreneurs</a> weighing the idea of ownership, the answer to that question can be both yes and no. Franchising offers a proven system and built-in support. Starting from scratch allows greater flexibility and control. And a proper understanding of the trade-offs can help potential owners decide which path is most aligned with their business goals.According to&nbsp;<a href="https://drymedicfranchise.com/">DRYmedic Restoration</a> franchisee&nbsp;<a href="https://www.linkedin.com/in/keith-carlson-29b0a930/">Keith Carlson</a>, the appeal of franchising often starts with structure. “The yes is that you have an automatic blueprint,” he said. “You’re in. You don’t have to think of everything. You don’t have to come up with your business plan or your marketing plan.”As Carloson noted, franchisors generally provide detailed guidance on everything from licensing and certifications to business structure. “All of those things are done. Or they’re in a list or part of a large checklist,” he said. “From that perspective, it’s simpler on the back end.”<h2>Franchising Vs. Starting From Scratch: Key Considerations</h2>So,&nbsp;<a href="https://1851franchise.com/buying-a-franchise-vs-starting-from-scratch-2725815">is franchising better than starting a business from scratch</a>? Here are five areas to consider:1. Built-In Systems Vs. Total Control Franchising provides a tested playbook. But it comes with rules. “If you’re in a franchise, every time you want to do something that’s outside their playbook, you have to ask permission,” Carlson reminds. Independent owners, on the other hand, can pivot freely but must build systems from the ground up (which takes time and resources).2. Fees and Royalties Franchise fees and royalties are part of the deal. It’s important to both understand and plan for them accordingly.3. Experience and Support One of franchising’s biggest advantages is access to experienced operators. Carlson recalled his first job after signing his initial work order: “I was nervous. But I had somebody on the phone within 10 minutes saying, ‘You’ve got to do this, this and that,’” he said. “It was so easy to get through that first job because there was no guesswork.”4. Following The System (With Local Flexibility) While local nuances aren’t always captured in a national system, the strength of a proven system remains a franchising hallmark.5. Long-Term Upside Starting a business from scratch can be more lucrative. “But it depends on the level of effort you want to put in,” Carlson reminds potential zees.<h2>The Bottom Line</h2>So, is franchising better than starting a business from scratch?&nbsp;<a href="https://1851franchise.com/franchising-and-the-american-dream-2730380">Franchising</a> can reduce risk, shorten the learning curve and provide critical support (especially early). Independent startups can offer more autonomy and, potentially, greater long-term rewards. Therefore, an honest assessment of tolerance for structure, fees and self-direction can help those considering entrepreneurship to properly assess the ownership situation best aligned with one’s goals for success in the business opportunity.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.

Is franchising better than starting a business from scratch?

Is franchising better than starting a business from scratch? Franchising offers a proven system and support. Starting from scratch provides flexibility and control. Here’s how to assess the tradeoffs.

Is Franchising Better than Starting a Business from Scratch? A Guide

is-franchising-better-than-starting-a-business-from-scratch-a-guide

When evaluating a franchise opportunity, there’s an important early step: how do I research franchise complaints? Understanding the issues both current and former franchise owners have experienced can help prospective franchisees make better-informed decisions that increase the likelihood of selecting a brand aligned with their business goals.Franchise consultant&nbsp;<a href="https://www.linkedin.com/in/franchise-guru/">Lisa Welko</a> of&nbsp;<a href="https://integrityfranchisegroup.com/">Integrity Franchise Group</a> emphasizes the importance of validating information through direct research. “The most important thing about researching any franchise is the opportunity to validate with franchise owners personally,” Welko said. “Use the reviews to formulate your questions and opinions. And then validate those findings with actual owners in the system.”<h2>Start With The Basics: Public Records And Online Tools</h2>How do I research franchise complaints?&nbsp;It starts with sources that are accessible and objective.<ul><li>Franchise Disclosure Document (FDD):&nbsp;<a href="https://1851franchise.com/understanding-item-3-of-the-franchise-disclosure-document-litigation-history-2703061">FDD Item 3</a>, litigation history, lists pending litigation or past legal issues involving franchisees that can be potential&nbsp;<a href="https://1851franchise.com/red-flags-to-look-out-for-when-doing-franchise-research-2723769#stories">red flags</a>. &nbsp;</li><li>State Regulatory Agencies: Many states publish franchise or business complaints (including the Attorney General’s office). &nbsp;</li><li>Online Reviews and Forums: While helpful for providing additional context, they should not be used as the only source of research. “Just like anything on the internet, we need to remember ‘Buyer Beware,’” said Welko. “Online reviews can be a helpful tool. But we need to remember that it’s one tool in the arsenal. So, don’t let one bad review torpedo your research.”</li></ul><h2>Speak Directly With Franchise Owners</h2>Nothing replaces firsthand insights. Contacting current – and former – franchise owners to ask about their experience with franchisor support, operations and growth potential is a critical part of the validation process. It’s essential to pay attention to recurring themes in their feedback, both positive and negative, to identify potential risks (or opportunities) correctly.&nbsp;<h2>Practical Takeaways For Evaluating Franchise Complaints</h2><ol><li>Verify Patterns, Not One-Offs – A single complaint may be an isolated incident. Look for repeated issues that may indicate systemic challenges. &nbsp;</li><li>Check The Age Of Complaints – Older complaints may reflect resolved issues or changes in leadership (while recent complaints can indicate ongoing issues). &nbsp;</li><li>Ask Specific Questions – When speaking with franchisees, ask about areas like training, corporate support and general operational challenges. &nbsp;</li><li>Evaluate The Brand’s Response – How a franchisor addresses complaints can reveal the level of transparency, responsiveness and commitment provided to franchise owners. &nbsp;</li><li>Integrate Findings Within Decision-Making – Use complaint research as part of a larger due diligence process (along with financials, market analysis and personal goals).</li></ol><h2>The Takeaway</h2>So, how do I research franchise complaints?&nbsp;Doing so is essential. Utilizing a combination of public records, online insights and&nbsp;<a href="https://1851franchise.com/what-is-the-value-of-franchisee-validation-in-the-franchise-sales-process-2703208">direct validation with franchisees</a> (past and present), potential franchise owners can better evaluate both risk and opportunity. By following a structured approach, actionable insights that build confidence in the franchise decision-making process can be identified.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 do I research franchise complaints? In this guide with expert tips, learn how to uncover patterns, validate insights with franchisees and make informed franchise investment decisions.

COVID-19 and High Unemployment Set Up 2021 For Franchise Sales Feeding Frenzy

MORE STORIES LIKE THIS