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The financial future is bright for franchise owners. Even in the most competitive of markets, a franchise owner still has the ability to come out ahead in the form of profits received from sales and service transactions, as well as an optional yearly salary.&nbsp;According to a <a href="https://franchisebusinessreview.com/post/how-much-franchise-owners-make/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-do-franchise-owners-get-paid-2716829" target="_blank" rel="nofollow">2018 survey</a> by Franchise Business Review, the average pre-tax income of franchise owners in the U.S. hovered around $80,000, with seven percent earned over $250,000 a year.&nbsp;Here are some important components that factor into <a href="https://1851franchise.com/can-you-get-rich-owning-franchises-2715618#stories">how a franchise owner might get paid</a>.<h4>Profits From Sales and Service Transactions&nbsp;</h4>For a franchisee, revenue from sales and service transactions is the bread and butter of all profits. A franchisee <a href="https://www.franchise.com/blog/how-do-franchise-owners-get-paid?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-do-franchise-owners-get-paid-2716829" target="_blank" rel="nofollow">profits from sales and service transactions</a>. This is considered the “leftover” cash after all other overhead expenses are covered (i.e., equipment costs and fees; inventory and supplies; staffing, salaries and benefits; a brick-and-mortar location).<h4>Yearly Salary&nbsp;</h4>The option to take a yearly salary varies on a case-by-case basis. So, depending on which franchise an individual partners with and how profits are trending, that person may choose to take a salary. A franchisee may also be able to <a href="https://www.adp.com/resources/articles-and-insights/articles/w/who-pays-employees-in-a-franchise.aspx?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-do-franchise-owners-get-paid-2716829" target="_blank" rel="nofollow">take a draw</a> from their accumulated equity. This is generally only an option for LLCs, S Corps, sole proprietorships and partnerships, according to ADP. It’s worth noting that owner draws affect working capital and have tax implications. Meeting with a financial advisor or tax attorney helps with peace of mind and is highly recommended for all franchise owners considering taking a salary.&nbsp;<h4>Fees To Consider&nbsp;</h4>Franchise owners buy into business models with proven strategies for financial and organizational success, and there can be substantial upfront fees. Of course, the largest fee is the initial buy-in, and from there, the franchisors collect a percentage of gross sales and a lump-sum yearly franchise fee.&nbsp;<a href="https://www.investopedia.com/articles/pf/07/franchise_model.asp?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-do-franchise-owners-get-paid-2716829" target="_blank" rel="nofollow">Investopedia</a> gives the following example: “Dunkin' Donuts charges approximately $40,000 to $90,000 for the initial franchise fee, 5.9% in royalties, and 5% for advertising. The initial investment ranges between $109,700 to $1,637,700. A store that does $900,000 in annual sales would owe nearly $100,000 to the company. Adding in materials cost of about $200,000 would leave the franchisee with about $600,000.”&nbsp;There are, of course, expenses to consider that are deducted from this profit. These include rent, utilities, labor, taxes and more. Regardless, even after these are taken out of the owner’s hypothetical pockets, for a franchisee working in the expanse of a successful brand, he or she is likely to come out with a win at the end of the balance sheet.<h4>The Outlook Is Bright&nbsp;</h4>A franchise owner bypasses the hard part of business development, branding and marketing and product research that independent business owners have to do themselves. There’s a strategy for profit given the above factors, and the numbers are trending positively for a profitable franchising industry.&nbsp;Related Stories:&nbsp;<ul><li><a href="https://1851franchise.com/what-should-you-research-before-buying-a-franchise-2716754#frannews">What Should You Research Before Buying a Franchise?</a></li><li><a href="https://1851franchise.com/why-buy-a-franchise-2714619#stories">Why Buy A Franchise?</a></li></ul>

How Do Franchise Owners Get Paid?

1851 Franchise

A franchisee can turn a profit several ways, including via sales, service transactions and a possible yearly salary, if they choose to take one.

how-do-franchise-owners-get-paid

Strategic Franchising

Exiting Franchising: How Strategic Franchising Helps Owners Build and Cash In on Their Legacy

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Beansquad

Why Franchisors Need the Right Financial Partner by the End of Q1

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Layne's Chicken Fingers

Layne’s Chicken Fingers Brings the Crunch to Rockwall with April 18 Grand Opening and Free Layne’s for a Year

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Layne’s Chicken Fingers Brings the Crunch to Waycross with April 11 Grand Opening and Free Layne’s for a Year

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ServiceMaster Restore

How ServiceMaster Restore Franchisees Offer Managed Repair Services

How ServiceMaster Restore Franchisees Offer Managed Repair Services in Addition to Disaster Recovery as a Single-Source Solution

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KKR Nears Deal for Nothing Bundt Cakes at $2 Billion

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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

KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal -  1851 Franchise

KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal

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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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Private equity firm KKR is set to buy&nbsp;<a href="https://www.nothingbundtcakes.com/franchise-opportunities/">Nothing Bundt Cakes</a> from Roark Capital for about $2 billion,&nbsp;<a href="https://www.franchisewire.com/kkr-to-buy-700-unit-nothing-bundt-cakes-for-2-billion/">FranchiseWire recently reported</a>. The deal highlights&nbsp;<a href="https://stachecow.com/private-equity-in-franchising-why-pe-keeps-buying-franchise-brands-755">how attractive franchise brands have become for investors</a>.<a href="https://1851franchise.com/franchise-deep-dive-nothing-bundt-cakes-franchise-costs-fees-profit-and-data-2721459">Nothing Bundt Cakes</a> has expanded rapidly in recent years. The brand reached 700 locations in 2025, up from about 390 stores when&nbsp;<a href="https://www.roarkcapital.com/">Roark Capital</a> bought it in 2021. Much of that growth has come from franchisees, who own and operate most of the locations. In 2024 alone, the company added more than 100 new stores.The brand was founded in 1997 by Debbie Shwetz and&nbsp;<a href="https://www.linkedin.com/in/dena-tripp-2a74787/">Dena Tripp</a>, who started baking cakes at home in Las Vegas. Today, it is known for its variety of flavors and simple product lineup, including full-size cakes and Bundtlets.One reason the company stands out is its unit economics. Stores that have been open for at least two years average about $1.4 million in annual sales. That level of performance has made it appealing to both franchisees and investors.KKR has invested in a range of restaurant and food-related businesses. This acquisition adds another established franchise brand to its portfolio.Roark, meanwhile, continues to focus on large franchise systems. Its holdings include brands like&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-subway-franchise-costs-fees-profit-and-data-2722471">Subway</a> and&nbsp;<a href="https://www.google.com/search?q=Dunkin+franchise+deep+dive&amp;oq=Dunkin+franchise+deep+dive&amp;gs_lcrp=EgZjaHJvbWUyCQgAEEUYORigATIGCAEQRRg80gEIMTkzN2owajeoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8#:~:text=Dunkin%27%20Franchise%20Costs%2C%20Fees,franchise%2Ddeep%2Ddive%2Ddunkin%2D...">Dunkin'</a>. The firm is also reportedly considering taking its&nbsp;<a href="https://inspirebrands.com/">Inspire Brands</a> platform public, which could raise around $2 billion.Read the full article&nbsp;<a href="https://www.franchisewire.com/kkr-to-buy-700-unit-nothing-bundt-cakes-for-2-billion/">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.

After several years of steady expansion, the brand has reached a scale and level of performance that continues to draw attention from large private equity buyers.

According to a&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">recent release</a>,&nbsp;<a href="https://rf-partners.com/">RF Investment Partners</a>, a group focused on flexible capital solutions and value-add support to lower-middle-market businesses, has teamed up with&nbsp;<a href="https://www.burlingtoncp.us/">Burlington Capital Partners</a>, a group focused on family, founder and operator-owned lower-middle-market businesses, to acquire a prominent multi-territory&nbsp;<a href="https://franchise.neighborly.com/precision-door">Precision Garage Door Service</a> franchise.The investment marks the seventh platform for RF within the service space. Precision Garage Door Service, which is part of the larger&nbsp;<a href="https://www.neighborly.com/">Neighborly</a> ecosystem, specializes in the installation, maintenance and repair of garage doors.&nbsp;“We are proud to partner with management and the Burlington team to support continued growth by investing in people and operational excellence,”&nbsp;<a href="https://www.linkedin.com/in/peter-fidler-6787143">Peter Fidler</a>, managing partner and co-founder of RF Investment Partners, said in the release. “The sector continues to present compelling opportunities given the essential nature of garage door repair, and we look forward to building on Precision’s strong foundation to drive long-term value.”This deal is part of the broader trend toward institutionalized multi-unit and multi-territory operators. Previously, franchising was largely viewed as the place for “mom-and-pop” businesses. And while franchises remain small, local businesses, the aggressive entry of private equity firms focused on operators (franchisees) rather than the brand (franchisor) is bringing new energy to small business ownership.Read the full release&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">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.

Design with Precision Garage Door Service team members

The strategic investment marks the seventh residential services platform for RF and reflects a growing institutional desire for high-potential, operator-led franchises.

RF Investment Partners and Burlington Capital Join Forces to Acquire Top Precision Garage Door Franchise

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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.

<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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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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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

Beef 'O' Brady's Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Beef ‘O’ Brady’s is a family sports pub concept built around community, casual dining and lifelong local loyalty.

beef-o-bradys-franchise-costs-fees-profit-and-data

image of urswim franchise deep dive costs and fees and investment range

Franchise Opportunity Deep Dive: A purpose-driven swim instruction and aquatics management franchise offering at-home, indoor and community-based swim programs.

urSwim Franchise Costs, Fees, Profit and Data for 2026

urswim-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

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


How Do Franchise Owners Get Paid?

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