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When franchisees sign on with a restaurant concept, a major part of that investment is going toward accessing an established supply chain – a guaranteed process for sourcing high-quality ingredients. But right now, chicken, beef, ketchup packets – and even cups and straws – are all in short supply, and with <a href="https://1851franchise.com/supply-chain-crisis-continues-to-hurt-fast-food-restaurants-2716975">supply chain issues</a> expected to last well into 2022, it is becoming more and more difficult for food franchises to source the materials they have been able to expect to have on hand. Restaurant franchisors need strong, well-established relationships with vendors, and they must be willing to adapt in order to ensure ingredients are being successfully delivered to franchisees.&nbsp;<a href="https://www.linkedin.com/in/samir-wattar-0a4187a/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-do-food-franchises-source-ingredients-2718319" target="_blank" rel="nofollow">Samir Wattar</a>, COO of <a href="https://1851franchise.com/layneschickenfingers/five-reasons-to-buy-a-laynes-franchise-in-2022-2718058">Layne's Chicken Fingers</a>, has worked in the restaurant industry for thirty years, including 15 years in roles overseeing supply chain, operations, training and franchise development. Wattar recently <a href="https://1851franchise.com/layneschickenfingers/supply-chain-success-propels-laynes-chicken-fingers-toward-goal-of-8-10-openings-in-2022-2717796">explained to 1851 Franchise</a> how Layne’s has been able to accommodate high demand even during supply shortages and lend support to franchisees amid uncertain times.For starters, the supply chain is a “relationship business,” Wattar explained, and franchisors need to build those solid relationships and connections with many different companies in order to safeguard a backup plan.&nbsp;“For example, this year we had a deal with a chicken processor, but because of <a href="https://1851franchise.com/popeyes-launches-chicken-nuggets-despite-chicken-shortage-2716294">the way the chicken market was</a> [experiencing shortages], he broke the agreement with us with only two weeks' notice,” Wattar said. “So, I reached out to my contacts, and within two weeks, I had a chicken agreement back in place with another person. This was possible because the people I work with know that I look for partnerships, not just transactions.”Those long-term relationships can also make the supply chain more profitable for franchisees. While the person needing the supplies generally favors a discount, and vendors typically want to make a profit, Wattar is of the mindset that a successful supply chain is one where “they can meet somewhere in the middle.”&nbsp;&nbsp;“I'm very loyal to my partners, so we can have that ongoing, beneficial relationship where we both profit from consistent business,” Wattar said. “And we don't make a deal and then charge the franchisee money. We pass the savings to the franchisee because we consider the supply chain one of the main services the franchisee invested in when deciding to join Layne’s.”<a href="http://chefgruel.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-do-food-franchises-source-ingredients-2718319" target="_blank" rel="nofollow">Andrew Gruel</a>, the founder and executive chef of seafood franchise <a href="https://www.slapfishrestaurant.com/franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-do-food-franchises-source-ingredients-2718319" target="_blank" rel="nofollow">Slapfish</a>, says franchisors also always need to be flexible to ensure franchisees can not only source ingredients reliably and affordably, but also consistently meet brand standards.&nbsp;“Eighty percent of the seafood we eat in the U.S. is imported,” <a href="https://1851franchise.com/chef-andrew-gruel-is-looking-out-for-the-little-guy-2717555">Gruel told 1851 Franchise</a>. “I have been pounding the drum about the domestication of our seafood supply, both farm-raised and wild. We have a great seafood supply in the U.S., which we ship overseas to China to process and then buy back. So we knew we were going to have these shortages, and we on the corporate side needed to figure out how we could be flexible and help franchisees so we could maintain our brand standards. Franchisors have to provide a template so franchisees can understand the why behind everything they do.”&nbsp;For example, due to the supply chain, Gruel said the only affordable <a href="https://1851franchise.com/the-latest-supply-shortage-could-make-takeout-and-delivery-a-challenge-for-the-restaurant-industry-2716925">to-go containers</a> Slapfish could find were Styrofoam containers, which are the worst for the marine environment. “So, do we use plastic or do we opt for a much more expensive container? At the end of the day, you stick with your principles and buy the more expensive container,” he said. “You don’t give up on the business model and core values because of the price.”&nbsp;Layne’s has also had to adjust some processes and pivot this year, Wattar said, while making sure to maintain consistency among consumers. The brand needed to swap materials for cups due to shortages, for example, with material variations for packaging and drinks. But Wattar says the primary focus was on maintaining food quality and keeping food in stock. Because of this, the brand has been able to maintain its chicken-loving customer base.&nbsp;So, how can the industry adapt to <a href="https://1851franchise.com/supply-chain-crisis-should-franchise-brands-turn-to-hoarding-2717359">avoid another supply chain crisis</a> in the future? Gruel said one of the primary takeaways is that the industry needs to start really looking at where it buys ingredients.&nbsp;“A key part of that is deregulating local food economies so we can buy more food locally,” said Gruel. “We need to get rid of those barriers that allow the big manufacturers to just get bigger at the expense of the little guys. We don’t want to get stuck in a situation like we’ve been in with this current supply chain because only one conglomerate is in control of an entire supply. We saw that with the meat shortage, for example. We need a community-driven, sustainable food supply.”Related articles:&nbsp;<ul><li><a href="https://1851franchise.com/supply-chain-crisis-continues-to-hurt-fast-food-restaurants-2716975#stories">Supply Chain Crisis Continues to Hurt Fast-Food Restaurants</a></li><li><a href="https://1851franchise.com/the-risk-of-menu-expansion-in-2021-2716255">The Risk of Menu Expansion in 2021</a></li><li><a href="https://1851franchise.com/popeyes-launches-chicken-nuggets-despite-chicken-shortage-2716294#stories">Popeyes Launches Chicken Nuggets Despite Chicken Shortage</a></li></ul>

How Do Food Franchises Source Ingredients?

1851 Franchise

To overcome ongoing supply chain issues, franchisors need to ensure franchisees have access to reliable vendor partnerships, flexible procedures and rock-solid brand standards. 

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Woofie's

Woofie's Wraps Up 2025 With 25 Franchise Deals Signed, Expanding Into Major Metros Across the U.S.

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Your Pet’s Life Is Busy, Too. Woofie’s Makes Care Easy

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Woofie’s Is Building the Full-Service Pet Care Franchise for Modern Pet Parents and Authority Brands Is Accelerating the Momentum

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urSwim

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Why urSwim’s Swim Lesson Model Is Built to Withstand Economic Downturns

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America's Swimming Pool

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America’s Swimming Pool Company Celebrates Franchise Growth and Excellence at 2026 Owners Conference

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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

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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.


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

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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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<a href="https://hardeesfranchising.com/">Hardee’s</a>, a 65-year-old burger chain best known for its Thickburgers and breakfast biscuits, is facing a fast-moving round of closures driven by a franchise dispute rather than a bankruptcy filing.&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">Inc. recently reported that</a> 77&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-hardees-franchise-costs-fees-profit-and-data-2721286">Hardee’s</a> restaurants are expected to close within two weeks as one of the brand’s largest franchisees exits the system.&nbsp;According to the report, Hardee’s is suing&nbsp;<a href="https://www.arcburger.com/">ARC Burger</a> — a franchise operator owned by&nbsp;<a href="https://www.highbluffcap.com/">High Bluff Capital Partners</a> — alleging the company fell behind on required payments and other contract obligations. Twenty-eight locations had already gone dark as of late December, with remaining sites scheduled to shutter across eight states: Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming.&nbsp;At the center of the complaint is the franchising “stack” of ongoing fees and pass-through costs that keep a system running. ARC Burger allegedly owes more than $6.5 million, including royalties, advertising fund contributions, technology and training fees, rent and taxes, and that payments stopped in December 2024. Hardee’s also argued in the lawsuit that the franchisee’s cash flow was not being used to bring accounts current.&nbsp;Hardee’s, for its part, is framing the shutdowns as a contractual enforcement issue, not a brand-wide retrenchment. “These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales,” a Hardee’s spokesperson said.&nbsp;The situation highlights a familiar franchising pressure point: unit economics. Inc. reported that Hardee’s operates more than 1,800 U.S. restaurants and that average annual sales per location are less than $1.2 million, well below averages cited for&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-wendys-franchise-costs-fees-profit-and-data-2722520">Wendy’s</a> and&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654#stories">McDonald’s</a>. Lower volumes can leave franchisees with less room to absorb higher labor, food and occupancy costs while staying current on fees.&nbsp;Hardee’s said it is working to limit fallout for workers and communities and is looking for ways to reopen closed restaurants. For franchising, the next chapter will likely involve finding replacement operators, transferring sites and rebuilding compliance — a reminder that franchise growth depends as much on franchisee solvency and execution as it does on consumer demand.Read the original article&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">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.

Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

The closures stem from alleged unpaid royalties and missed franchise obligations by a major operator, not a broader chainwide collapse for the Hardee’s system.

Hardee’s Lawsuit Targets Franchisee as 77 Restaurants Prepare to Shut Down

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The linear sales funnel is dying. Prospective buyers are no longer filling out a form at first glance and waiting for the phone to ring. They’re doing the majority of the heavy lifting before they even make themselves known to the franchisor. For franchisors, this means one key thing: you must know exactly where candidates spend their time. No guesswork. And you have to adjust your strategy accordingly.And, in today's buyer world, the biggest buzz term is 2026's ride or die for franchise brands – Ai.&nbsp;If you are trying to sell a franchise today, you must meet candidates where they are (four walls, Ai, website, social advertising).&nbsp;Focusing on a strong digital footprint first and then lead generation will help the brand with validation and will lay the foundation for trust before the first conversation even happens. Still, franchisors must know where to find their candidates and be confident the candidates are being sent to the right place.“We consistently see the strongest lead performance from Google Search (paid and organic), social platforms such as Facebook, Instagram and LinkedIn and our franchise development website,” said&nbsp;<a href="https://www.linkedin.com/in/erinlsnyder">Erin Snyder</a>, head of franchise development at&nbsp;<a href="https://handelsicecream.com/handels-franchise/">Handel’s Homemade Ice Cream</a>. “Because all awareness and advertising efforts ultimately funnel candidates to our development site, maintaining a highly optimized, mobile-first web presence is critical for conversion.”<h2>The "Hidden" Channels: Authentic Research via AiSEO</h2>While Google and major portals are often where a candidate might start a broad search, the deep research happens in the shadows. This is where candidates scroll, mindlessly or otherwise, simply observing rather than clicking “apply” immediately; or, ask Ai chatbots about the best franchises to buy, the blind spots, the why nots, and, of course, the whys.Right now, Ai plays a key role in this research stage. Buyers want the truth.&nbsp;For franchisors, this means your content strategy must pivot. It is no longer enough to post stock photos of happy business owners. You must document the journey, showing the behind-the-scenes reality that proves your concept has staying power.<h2>The Pivot From Print to Digital Interactivity</h2>While print media has been a channel for franchise development in the past, its static nature has made it less effective as the buyer’s journey has shifted to digital. Buyers are generally looking for channels that will allow them to click, read and continue the search immediately.“Traditional print media has largely become a thing of the past for franchise development,” Snyder said. “What has been encouraging, though, is seeing many of these publications successfully pivot to digital formats that offer greater interactivity, stronger analytics and far better linkability than print ever could.”This creates a more dynamic experience for the candidate. In addition to a digital article, franchisors can embed a “day in the life” video, for example, or hyperlink a deeper dive on costs and profits for instant validation.This shift also allows franchisors to track return on investment more effectively. Instead of guessing if an article or ad worked, digital publications allow you to see exactly who clicked through, allowing for retargeting and smarter budget allocation.<h2>The Conversion Hub: Your Mobile-First Website</h2>Once a candidate has discovered you on Google, watched your videos on TikTok and read about you in a digital publication, they finally arrive at the destination: your franchise development website.This is the bottom of the funnel, where you will win or lose a candidate. Because all other channels point here, your website cannot just be a digital brochure. It has to be a conversion engine. And crucially, it must work perfectly on a smartphone.The question can’t just be “Do we have a website?” Questions about the website should surround usability and readability. Is navigation easy on a smartphone? Does the site load quickly? Is it readable? If a prospect has to pinch-and-zoom to read your investment costs and financial performance, they will leave.An optimized, mobile-first presence is critical because it serves as the collection point; all other awareness efforts funnel potential franchisees to the site. The user experience here should validate the trust built on other channels. However, accessibility is only half the battle; the content itself must be unsparingly open. The website is the channel where you must prove your value proposition with hard data.“Across all channels, the messaging needs to be clear, concise and consistent,” Snyder said. “Candidates should be able to easily find transparent investment ranges and financial requirements, a clear value proposition, compelling franchisee success stories, key differentiators from competitors and straightforward next steps for how to inquire.”When you treat your website as a transparency engine rather than a gatekeeper, you change the dynamic of the eventual sales call. A candidate who has already consumed your financial data and success stories arrives at the inquiry stage educated and qualified. This allows the development team to skip the basic fact-finding and move straight to strategy and fit.“When a candidate submits an inquiry, the first conversation should build on what the candidate has already learned,” Snyder said “ensuring they understand the opportunity they are considering, clarifying details, personalizing the discussion to their goals and moving them into a structured education process rather than starting from scratch.”<h2>Allocating the Budget: The "Ideal Candidate" Approach</h2>While a presence across multiple channels — from search and social to digital publications — is key, understanding exactly how much to invest in each option is the next hurdle. There is no single, magical approach to budgeting; a brand selling multi-million-dollar franchises needs to develop a presence in different places than a low-cost, mobile franchise will.To spend effectively, you must deeply understand your ideal franchisee profile. Once you know who is investing, you can begin working on where to find them. For example, a high-net-worth investor might be on LinkedIn and reading digital trade journals, while a first-time investor or someone seeking an owner-operator model might be influenced by local Facebook ads.“Franchisors should start by understanding their ideal franchisee profile and then allocate budget toward the channels where those prospects spend the most time,” Snyder said. “The mix will naturally look different for a high-investment, multi-unit candidate than for a first-time owner-operator. Beyond that, it’s critical to consider overall brand awareness and invest in channels that consistently get both the brand and the franchise opportunity in front of qualified prospects. A balanced approach that supports both awareness and lead capture tends to produce the strongest results.”<h2>Key Takeaways and Next Steps:</h2>Make sure you have a content footprint that answers the top 25 questions asked about your brand in Ai and Google searchs.Review your mobile experience: Open your franchise development site on your phone. If it takes more than three seconds to load or if the "Apply" button is hard to find, fix it immediately.Embrace "lo-fi" video content: You don't need a production crew. Use a smartphone to record "day in the life" videos with your franchisees and post them to social to build authentic trust.Ensure transparency and continuity:&nbsp;Candidates need to be able to find the information they’re looking for, and the experience should be consistent between a social page and a franchise development site. Make sure your value proposition is clear across all channels.Embrace innovation, but don’t count out the classics:&nbsp;Look at the whole picture. Many candidates are exploring opportunities on supplemental platforms like social media or in the results of a Google search, but they’re still looking at the franchise development site, too. Don’t confine yourself to the “old reliable” methods, but don’t leave them behind, either.Budget by persona, not platform: Don't just "do Facebook ads." Define exactly who your buyer is, and spend your money only on the channels where that specific person consumes content.For more information on franchise growth channels, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/how-to-use-social-media-marketing-to-promote-your-franchise-2727185#stories">How To Use Social Media Marketing To Promote Your Franchise</a></li><li><a href="https://1851franchise.com/building-a-franchise-website-that-converts-key-features-and-best-practices-2727363#stories">Building a Franchise Website That Converts: Key Features and Best Practices</a></li><li><a href="https://www.youtube.com/watch?v=vlfduHqGy7I">How to Sell Franchises | The Buyer Persona</a></li></ul>

To succeed in the shifting landscape, franchisors must understand the buyer’s journey, identify the ideal franchisee profile, and build a digital presence that meets candidates where they are.

How Do Food Franchises Source Ingredients?

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