The New Era of Workforce Management: Navigating Labor Shortages in the Hospitality Industry

The ‘Match.com’ for Hospitality Brands: Harri Transforms Hotel and Restaurant Frontline Employee Hiring and Engagement Experiences

SUPPLIER INFORMATION

Harri

Contact

Why Harri?

Executive Q&A

Growing Demand for Recruiting & Retention Solutions

How Harri Transforms Hiring and Retention

Learn

Visit Website

HARRI

Facebook

Instagram

LinkedIn

YouTube

Twitter

SOCIAL MEDIA

HARRI MOST READ STORIES

1851 LOGIN

GROWTH CLUB LOGIN

ABOUT HARRI

CONTACT HARRI

facebook

instagram

twitter

linkedin

youtube

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

<a href="https://kbpbrands.com/">KBP Brands</a>, the multi-brand franchisee group with over 1,100 restaurants across 32 states,&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">has announced</a> its acquisition of 78 additional SONIC units. The new units are spread across Ohio, Kentucky, North Carolina, Tennessee and Virginia.This is the second SONIC acquisition KBP has completed in less than two years, and it makes KBP the fourth-largest SONIC franchisee in the system with 164 total locations across eight states.“We’ve had a successful five-year partnership with Inspire Brands and have seen strong results from our initial SONIC purchase,” KBP CEO&nbsp;<a href="https://www.linkedin.com/in/mike-kulp-820820">Mike Kulp</a> said in a statement. “We look forward to expanding that with a larger footprint and additional operational efficiencies.”KBP is one of the country’s largest franchisee groups, reporting approximately $1.5 billion in annual sales across its portfolio, which includes KFC, Taco Bell and Arby’s, another Inspire Brands franchise."Our relationship with KBP Brands continues to grow due to their operational excellence and our shared commitment to guest satisfaction and a culture that champions innovation," said&nbsp;<a href="https://www.linkedin.com/in/john-kelly-b48426b">John Kelly</a>, brand president at SONIC. "KBP's expansion with SONIC demonstrates their dedication to our vision and the brand's long-term growth."Read the full press release&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">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.

Photo of SONIC franchise logo against blue sky backdrop

The franchisee group, which already operates over 1,100 units, is growing its portfolio with the quick-service brand, becoming one of SONIC’s largest franchisees.

KBP Brands Acquires 78 SONIC Locations Across Five States

kbp-brands-sonic-acquisition

Nashville Hot Chicken franchise deep dive

Franchise Opportunity Deep Dive: Nashville Hot Chicken is a fast-casual restaurant franchise specializing in spicy, cayenne-pepper-infused fried chicken.

Nashville Hot Chicken Franchise Costs, Fees, Profit and Data for 2026

nashville-hot-chicken-franchise-deep-dive-costs-fees

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

2026-franchising-economic-outlook-report

After more than a decade spent auditing government agencies and defense contractors, Kevin Lewis reached a breaking point, not because he disliked the work but because he rarely saw its impact. Franchising with&nbsp;<a href="https://freshcoatfranchise.com/">Fresh Coat Painters</a> would soon give him a different perspective.Kevin, a U.S. Army veteran, built a career in public-sector auditing after returning from Afghanistan in 2012, first at a CPA firm and later with both the Tennessee National Guard and the Defense Contract Audit Agency. The work was steady but slow-moving, with long timelines, distant outcomes and limited control over his schedule. Still, what pushed him to make a change was more immediate: When telework ended, his job began to require a four-hour daily commute, and the grind became impossible to ignore.&nbsp;Looking for a career that offered both professional independence and tangible results, Kevin began to explore the idea of franchising. Through a career ownership coaching company, he was introduced to franchise concepts outside the usual nationally marketed big-name chains he once assumed were the only franchising options.&nbsp;Founded in 2004, the&nbsp;<a href="https://strategicfranchising.com/">Strategic Franchising Systems</a> painting franchise has tweaked its system for more than 20 years. Systems and structure tend to appeal to veterans considering entrepreneurship. But the business also stood out to Kevin thanks to the built-in resilience of its model. For Kevin,&nbsp;<a href="https://1851franchise.com/freshcoat/info">Fresh Coat Painters</a> represented more than a business opportunity: it presented the chance to apply his disciplined, systems-driven background to a model with visible outcomes.Now a&nbsp;<a href="https://freshcoatpainters.com/locations/davenport/">Fresh Coat Painters franchisee in Davenport, Florida</a>, Kevin is focused on growth, delegation and building a business that delivers both financial security and personal freedom.1851 Franchise sat down with Kevin to discuss his franchising pivot to&nbsp;<a href="https://1851franchise.com/freshcoat/info">Fresh Coat Painters</a>, why it’s a fit and why the model appeals to veterans. Here’s what he had to say:1851 Franchise: Can you frame your personal story for us? What do you want us to know about your journey into franchising?Kevin Lewis: My journey to franchising really started when I moved to Florida. I moved from Tennessee. I’ve been auditing since I got back from Afghanistan in 2012. I went to work for a CPA firm and have been auditing ever since.In Tennessee, I oversaw internal audits for the Tennessee National Guard. When I came down to Florida, I started working for the Defense Contract Audit Agency. When they did away with telework, I had to go into the office every day, which was a four-hour round trip. So, I was really looking for a career change. I came across a company on LinkedIn called&nbsp;<a href="https://entrepreneurssource.com/">The Entrepreneur’s Source</a>. They’re the ones who started leading me down the franchise track. They presented different options and Fresh Coat jumped out at me. One thing that was taught to us is that home improvement tends to be resistant to economic downturns. And that’s one thing that drew me in.Another thing I found intriguing is that when I was auditing, I would send an audit report out to whatever defense company I was auditing. But you would never see the results of your work. It was probably years in the making because any findings could be adjudicated five or 10 years down the road (depending on when the contract closed). So, one thing I like about painting and home improvement is you can always see the fruits of your work. You can see the end effort. It gives a sense of accomplishment.1851: What was your perception of franchising before you became a franchisee and what do you want people to know about franchising now that you’re in it?Kevin: One, that it was too expensive to get into. Because when you think of franchising, you think of the major chain brands. You don’t really realize that the cost of entry is there for somebody who’s just wanting to break the surface. I got a better impression when one of my friends, one of my lieutenants from Afghanistan actually, got into franchising. It was a lot of hard work at the beginning but the amount of independence he has now and the financial security he has now was appealing. When the opportunity came up and was presented to me, that’s what piqued my interest.1851: What excites you most about Fresh Coat Painters?Kevin: One thing I like about Fresh Coat is the expertise they bring in. One of their main executives came from Sherwin-Williams. There’s just years of experience there. They’ve got business coaches. You’ve just got plenty of experience behind the brand.&nbsp;I also liked Fresh Coat because of the franchise developer I was in contact with. The amount of support and attentiveness she gave showed what type of brand it is. I ran into other franchise developers who were hard to get in touch with and weren’t really selling the brand. Well, if the person trying to sell you isn’t passionate about it, then maybe the company isn’t passionate about it.&nbsp;I just felt Fresh Coat had my best interests in mind and was making sure we were a good fit for each other.1851: What are you hoping to achieve with the business? Is there a plan for growth?Kevin: I’d like to open at least two more territories and manage it that way. My goal is to get project managers who can help manage each territory so that I can oversee all of them. I didn’t get into business for myself to be doing day-to-day operations like going out and doing quotes. I want to manage a business. I don’t want to run every aspect of it. You don’t get into business for yourself to work it as a job. You work it as a business. As an owner.1851: What advice do you have for people who might be thinking about becoming franchise owners?Kevin: One piece of advice is to try to get over your fear of the financial investment it may take. What’s your peace of mind worth? What’s your freedom worth to you? You can continue in a safe, routine job. But you’re always going to be dependent on other people as to when you can take off and what you can do. If you really want that freedom, I would say, although it’s hard work at the beginning, franchising has a great payoff.If you’re good at following a system, then franchising is probably for you. They like to recruit military because we train, from private up to officer, to be able to do the next person’s job. We do it through repetition and SOPs. There’s no magic way.&nbsp;In franchising, the path has already been set for you. You just have to be able to follow it and listen to the people who are coaching you.To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://1851franchise.com/freshcoat/info">https://1851franchise.com/freshcoat/info</a>.ABOUT FRESH COAT PAINTERS:Fresh Coat Painters, the residential and commercial painting franchise under the Strategic Franchising Systems umbrella, offers a low-cost, high-margin business model that gives entrepreneurs from all walks of life the chance to become successful business owners in the communities they serve. Since starting in 2004, Fresh Coat has expanded to over 190 franchise locations nationwide. Thanks to its unparalleled professionalism and affordable business model, it has become one of the leading concepts in the booming residential and commercial painting segment. With continued year-over-year growth, Fresh Coat is well on its way to achieving its overall goal of becoming a truly iconic painting brand.&nbsp;

image of kevin lewis from fresh coat painters of davenport franchisee story

After feeling stuck in government auditing, Kevin chose a structured franchise model that offered flexibility, stability and room to grow in Davenport, Florida.

Veteran Kevin Lewis Found a Better Fit in Business Ownership With Fresh Coat Painters

kevin-lewis-veteran-franchising-pivot-fresh-coat-painters-of-davenport

When assessing potential franchise ownership opportunities, there’s an important question: what kind of support do franchisors provide? Understanding the unique operational,&nbsp;<a href="https://1851franchise.com/chapter-11-training-and-supporting-your-franchisees-2722733#stories">training</a> and strategic support systems available (which can vary by franchisor) can help prospective franchise owners consider whether a brand is properly aligned with their resources and ultimate goals in terms of both profits and growth.<h2>Expert Insight: Real-Time Access, Operational Guidance</h2>What kind of support do franchisors provide? An accessible franchisor can take the prospective franchise owner far. And sometimes there’s a benefit to working with a smaller franchisor who can prioritize the delivery of personalized support. Taking advantage of the opportunity to access franchisor leadership – an important part of the franchise Discovery Day experience – can also pay dividends down the line.“Right now, I literally have franchisees texting me, and we're on the phone most of the time the same day or I answer via text. So, take advantage of getting into founders’ brains and getting to see C-level people as much as possible while you can,” said&nbsp;<a href="https://www.booxkeepingfranchise.com/">BooXkeeping</a> CEO&nbsp;<a href="https://www.linkedin.com/in/maxemma/">Max Emma</a>. “I always tell my franchises, ‘Take advantage of that. Because once we become bigger, as much as I want to spend time with you, I may not be able to get to you right away.’”<h2>Types of Support to Expect</h2><ol><li>Operational Support – The franchisor often provides daily guidance, from troubleshooting problems to giving advice on workflow improvements. Direct access to leadership can accelerate problem-solving. &nbsp;</li><li>Training Programs – Most&nbsp;<a href="https://1851franchise.com/the-role-of-franchisors-in-supporting-low-cost-franchise-success-2725551">franchisors</a> offer structured onboarding as well as initial and ongoing training to ensure franchise owners stay up to speed on best practices and industry trends. &nbsp;</li><li>Communication Channels – Weekly town halls, online messaging platforms and focused support staff can provide franchisees multiple ways to ask questions and receive feedback in a timely manner. &nbsp;</li><li>Mentorship Opportunities – Smaller systems sometimes enable franchise owners to correspond directly with company founders or other executives who can deliver personalized insight from their franchising experience. &nbsp;</li><li>Strategic Guidance – Beyond operations, franchisors can provide advice on growth strategies, marketing campaigns and business development, assisting franchisees with the challenging process of franchise scalability.</li></ol><h2>Making the Most of Franchisor Support</h2>So, what kind of support do franchisors provide? Understanding the support structure can be a critical element of success in franchise ownership. Potential zees should assess leadership accessibility, existing training programs and the quality level of the ongoing operational guidance provided. By utilizing franchisor support in a proactive manner, new franchise owners can better navigate challenges, positioning themselves for more sustained success.The bottom line is, from launch through long-term growth,&nbsp;<a href="https://1851franchise.com/strategicfranchising/the-role-of-franchisor-support-in-driving-franchisee-success-2730403">franchisor support</a> can make a big impact on a franchise owner’s journey.&nbsp;“Operational support. We are available for our franchises whenever they need us,” Emma said. “In a lot of cases, it's as simple as sending us a text.”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.

What kind of support do franchisors provide?

What kind of support do franchisors provide? In this expertly sourced guide, learn more on operational guidance, training and mentorship with strategic advice for franchisee success.

Sitemap

SITEMAP > 2024 > June