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<a href="https://www.franconnect.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franconnect-took-out-an-industry-goliath-to-become-the-top-franchise-management-software-2707905" target="_blank" rel="nofollow" target="_blank">FranConnect</a>, recently ranked <a href="https://hubs.ly/H0dQ1XQ0?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franconnect-took-out-an-industry-goliath-to-become-the-top-franchise-management-software-2707905" target="_blank" rel="nofollow" target="_blank">&ldquo;#1 top supplier of Online Franchise Technology Services&rdquo;</a> by Entrepreneur Magazine, is taking down one-size-fits-all brands like Salesforce &amp; Microsoft.

While it&rsquo;s well known in the franchising industry that <a href="https://franconnect.1851franchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franconnect-took-out-an-industry-goliath-to-become-the-top-franchise-management-software-2707905" target="_blank" rel="nofollow" target="_blank">FranConnect is designed specifically for franchisors</a>, the competitive advantages of the best practices built into FranConnect&nbsp;franchise management software solutions aren&rsquo;t always clear. In fact, it sometimes takes franchise brands checking out the competition to see if the grass could be greener before they can truly understand FranConnect&rsquo;s advantage. That&rsquo;s exactly what happened in the case of two FranConnect clients, Liberty Tax and Franworth, that temporarily moved to the competing multi-vertical CRM Salesforce before ultimately coming home to FranConnect. Overall, the franchise brands found that complex and costly implementations, lack of basic franchise configurations and an absence of human-touch in customer support from the big-name vendor was not for them.

Liberty Tax Demanded Franchise-Driven Automation

Five years ago, Liberty Tax decided to engage FranConnect for help with optimizing lead-flow and streamlining operations. Less than a year into their engagement, the brand decided to leave FranConnect and move, ultimately only temporarily, to Salesforce.

Martha O&rsquo;Gorman, Chief Marketing Officer for Liberty Tax, explains why. &ldquo;We were with FranConnect for only six months when we decided to make a change,&rdquo; she said. &nbsp;&ldquo;As a company, Liberty Tax has a very tough time implementing new software of any type &ndash; mostly because we try to make everything fit into our way of doing business. At the time, it was like trying to make a round peg fit into a square hole.&rdquo;

O&rsquo;Gorman added that processes weren&rsquo;t as automated as they had hoped with their initial FranConnect implementation. For example, since the brand has locations in both the U.S. and Canada, leads needed to be marked by country when they came into the system. If the country wasn&rsquo;t properly indicated, then the leads weren&rsquo;t entered into the automated process correctly. As a result, the Sales Module was not being optimized, causing additional manual work. Liberty Tax also had difficulties getting its online brochure to go through its sales funnel accurately, so leads were not being properly scored which resulted in missed sales opportunities. That was when Liberty Tax decided to look at an alternative solution.

&ldquo;I became very involved in Salesforce &ndash; going to their convention and learning not only about the sales side of its system, but also about all of the capabilities that Salesforce promised. It seems like you can add modules to the system that will do almost anything, so we became very interested in what we could do as an organization with the tool,&rdquo; said O&rsquo;Gorman. &ldquo;We opted to go the call-center application route first when we transitioned over. We learned later that approach was a bit backwards in terms of how Salesforce works. Then, when we tried to add the Sales functionality &ndash; that was when things went downhill fast. We couldn&rsquo;t get anywhere with it. We just could not get it off the ground, even after hiring consultants to help us implement it. That&rsquo;s when we knew we had to leave. Breaking our contract was a very expensive lesson for us.&rdquo;

After leaving Salesforce behind, Liberty Tax used Act! CRM for the next sales season. They were familiar with Act! Because they had used it before. Then, O&rsquo;Gorman ran into some FranConnect folks at a conference in Atlanta and began a dialogue about coming back.

O&rsquo;Gorman said, &ldquo;FranConnect came in and did a demo for us to show all of the new capabilities that had been added and the streamlined functionality of FranConnect Sky. Their technology had advanced so much since we left FranConnect, it was easy to see the benefits. We decided to give FranConnect a second try, and we were able to implement it quicker than any other system we had ever done.&rdquo;

After the easy onboarding, the biggest benefit that Liberty Tax experiences now is greater engagement and adoption across its users, as well as improved results. &nbsp;

FranConnect: Better Lead Tracking throughout the Lifecycle to Convert More Leads, Faster

&ldquo;As a marketer, the most difficult thing for me is to spend a lot of money to generate leads and have them go into a black hole where I have no visibility into what&rsquo;s happening. With FranConnect, enabled by a very user-friendly mobile application, I can log in and see a snapshot of everything, anytime I want. I don&rsquo;t have to wait for someone to pull a report or wait for reports to be updated on a certain day. I can see where we are in the sales process at any time, and it&rsquo;s been very eye-opening for me to have that access,&rdquo; O&rsquo;Gorman said. &ldquo;The speed to leads that FranConnect provides through automated-workflow, SMS texting, notifications and their sales representatives is what you need to make better decisions to improve your competitive position. Every franchisor is going after the same potential prospects. The care, speed of response and follow-up for those leads will determine who gets the business and that&rsquo;s where FranConnect helps us excel.&rdquo;

Franworth Needed a Single Sign-On Enterprise View

Another company that understands the intense competition that&rsquo;s continuing to heat up in the franchising world is Franworth. Franworth manages multiple brands in its portfolio: TITLE Boxing Club, spavi day spa, Sweetwaters Coffee and Tea, The Lash Lounge and CITYROW. Its diverse portfolio makes it paramount for the company to be working with a well-equipped franchise management solution in order to stay ahead of the competition.

Franworth had been working with FranConnect and found that it was a great tool for each of its franchise brands individually. However, because Franworth isn&rsquo;t a franchisor in the traditional sense, it had a unique set of needs. Not only was Franworth looking for a solution for its brands individually, but it needed a way to streamline operations and communications across its growing multi brand, multi-unit business. That&rsquo;s where it started running into some issues &ndash; Franworth&rsquo;s team members were having to navigate five different log ins, reports and licenses for each brand under its umbrella. Because they couldn&rsquo;t see a clear path to scale with FranConnect, they started researching other options.

&ldquo;I told FranConnect that we were looking into Salesforce to address our enterprise needs. If I were simply deciding on the best tool to manage one franchise system, FranConnect would win easily. We understood the collective benefit of all our franchisors using the platform, since the system is configured specifically for franchise operations,&rdquo; said Mike Skitzki, Chief Operating Officer for Franworth. &ldquo;But we needed a high-level view across multiple brands with multiple units. At the time, we didn&rsquo;t fully understand the capabilities of the FranConnect Sky platform and we thought Salesforce offered a more robust custom enterprise configuration. It initially appeared like Salesforce would be the right path because of the &lsquo;plug and play&rsquo; nature of all the add-on modules available in the Salesforce App Exchange.&nbsp; On the surface, the enterprise promise of Salesforce was very appealing.&rdquo;

Franworth began its migration to Salesforce in the first quarter of 2018, but by Q2, they decided to pull the plug. According to Skitzki, the process became much more complex than it initially appeared.

&ldquo;Within a franchise system, there are a number of workflows and business processes that franchisors need to be able to manage to keep their development pipeline moving. Every single one of those workflows and processes need to be custom configured inside of Salesforce. The tool can absolutely handle it, but who will do that configuration and make sure it mirrors what brands need from an operations and legal standpoint? And how much is that going to cost? We thought we had good answers to every question coming into our migration with Salesforce,&rdquo; said Skitzki. &ldquo;But the further we got into the migration, and the further down the rabbit hole we went. We realized how many workflows there are and how many processes are necessary to run a franchise system. We ended up looking at either a very robust consulting bill for configuration and ongoing maintenance or a full-time hire of an experienced Salesforce implementer. At the end, it just didn&rsquo;t make sense for us. Salesforce&rsquo;s fancy reporting and ability to customize ended up being a deterrent for us. When everything needs to be customized, you&rsquo;re going to be looking at some pretty hefty costs.&rdquo;

Ultimately, Franworth realized that the problems they were having, including keeping costs low by operating all brands under one license, weren&rsquo;t being solved. So Skitzki and the rest of the team made the decision to reconsider FranConnect.

FranConnect: Developed for Franchisors with Everything They Need Already Built In

He said, &ldquo;The juice wasn&rsquo;t worth the squeeze with Salesforce. The cost to build out all of those configurations and maintain them wasn&rsquo;t worth the time and effort. And that all comes with FranConnect right off the shelf. That&rsquo;s why we decided to cut our losses, double down and return to FranConnect. Everything we needed had already been done in FranConnect with two decades of best practices backing it, so we decided to take advantage of what&rsquo;s already been built.&rdquo;

FranConnect&rsquo;s latest technology has been able to solve Franworth&rsquo;s multi-brand issues, and together they are now bringing all five of the FranWorth brands with oversight across all units under one license and log in.

&ldquo;Today, we have five brands in our portfolio, totaling nearly 1,000 units. Even at that scale, we concluded that FranConnect was the only partner that had all the functionality we needed to manage our brands at a reasonable cost. Plus, we have plans to add more brands during the year. I&rsquo;m confident in FranConnect&rsquo;s ability to scale with us,&rdquo; said Skitzki.

He continued, adding, &ldquo;When you migrate to a new CRM system, there are a significant number of hours and dollars that it takes. There&rsquo;s a disruption to the system overall. So, if you&rsquo;re looking at a migration, make sure you really understand the full budget, full project dependencies and full scope of what you&rsquo;re getting into. FranConnect has spoiled us &ndash; you pay one fee, they configure everything, and it works. With other vendors, you pay your license fees and then you must figure out how to make it work for your franchise business. That question is a big, timely and expensive one. For some franchises, it might make sense. But for most of us, it&rsquo;s a steep mountain to climb.&rdquo;

Both Liberty Tax and Franworth have found that when it comes to franchise management systems, the grass isn&rsquo;t always greener with alternatives. By researching available options &ndash; and comparing business needs with the functionality of one CRM tool over another &ndash; they&rsquo;ve both now re-engaged a solution, FranConnect, that enables them to operate at a higher level than they were in the past.

&ldquo;The key to choosing the right CRM tool, beyond the basics of &lsquo;does the system do what you need it to do,&rsquo; is service. You&rsquo;ll know early on what the culture of the company is and what level of support you&rsquo;re going to get,&rdquo; O&rsquo;Gorman said. &ldquo;When you&rsquo;re running a business &ndash; you want to talk to a person for help, not just enter a ticket online. We did not get high-touch support from Salesforce at all. Their attitude was &lsquo;you bought it, now figure it out.&rsquo; Now, FranConnect &ndash; they did not let us down. They have been with us every step of the way since we came back.&rdquo;

O&rsquo;Gorman explained that they have monthly in-person meetings, weekly status calls and she has conversations at all levels of the company &ndash; as high as the President and Chief Customer Advocate Keith Gerson. She said, &ldquo;They&rsquo;ve built a culture dedicated to making sure that customer satisfaction is at the highest level. I really feel taken care of with them. FranConnect has found their secret sauce, marrying great product and superior service.&rdquo;

Skitzki echoes O&rsquo;Gorman&rsquo;s thoughts when it comes to FranConnect&rsquo;s level of customer service. And because hindsight is 20/20, he says there&rsquo;s one thing that Franworth could have done better &ndash; simply communicate more.

&ldquo;We should have shared our concerns with our FranConnect customer advocate earlier in the process, said Skitzki. &ldquo;That way we would have learned about FranConnect Sky&rsquo;s new functionality sooner and never considered alternatives. Open communication saves time, headaches and money. There&rsquo;s no question that FranConnect has the superior franchising solution and the expert support team to back it up.&rdquo;&nbsp;

How FranConnect Took Out an Industry ‘Goliath’ to Become the Top Franchise Management Software

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Franchise executives from Liberty Tax Service and Franworth explain their decisions to return to FranConnect management software after relationships with Salesforce failed to deliver on expectations.

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

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

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A class-action lawsuit filed late last month in U.S. District Court in Chicago&nbsp;<a href="https://www.cbsnews.com/chicago/news/lawsuit-accuses-mcdonalds-deception-mcrib-has-no-rib-meat/">accuses McDonald's of deceptive advertising over its iconic McRib sandwich</a>, arguing that the product’s name and marketing mislead consumers into believing it contains actual pork rib meat. The plaintiffs, representing several states, claim the fast-food chain has intentionally cultivated hype and scarcity around the McRib through limited-time releases and advertising campaigns, most recently bringing the sandwich back in November. "The name 'McRib' is a deliberate sleight of hand. By including the word ‘Rib’ in the name of the sandwich, McDonald's knowingly markets the sandwich in a way that deceives reasonable consumers, who reasonably (but mistakenly) believe that a product named the 'McRib' will include at least some meaningful quantity of actual pork rib meat, which commands a premium price on the market," the lawsuit said. "McDonald's does this despite knowing that the sandwich in fact does not contain any meaningful quantity of actual pork rib meat — indeed, none at all."Instead, the complaint alleges that the sandwich contains no rib meat at all and is made from restructured pork derived from lower-grade cuts.&nbsp;"Put simply: consumers have been materially misled en masse as a result of McDonald's deceptive labeling and marketing into purchasing sandwiches that they would not otherwise have purchased, or would only have paid less for, had they known the truth," the lawsuit said.McDonald’s strongly disputed the claims. "This lawsuit distorts the facts, and many of the claims are inaccurate,” McDonald’s said in a statement. “Food quality and safety are at the heart of everything we do — that's why we're committed to using real, quality ingredients across our entire menu. Our fan-favorite McRib sandwich is made with 100% pork sourced from farmers and suppliers across the U.S. We've always been transparent about our ingredients so guests can make the right choice for them."<a href="https://1851franchise.com/the-mcrib-has-returned-is-mcdonalds-bouncing-back-2714359">The McRib</a>, first introduced in 1981, has since become a cult favorite, cycling on and off menus over the decades and achieving nationwide availability in 2020.Read the full CBS News article&nbsp;<a href="https://www.cbsnews.com/chicago/news/lawsuit-accuses-mcdonalds-deception-mcrib-has-no-rib-meat/">here</a>.

The class-action suit claims the cult-favorite sandwich’s name, shape and pricing deceive customers about what they’re really buying.

McDonald’s Faces Lawsuit Alleging McRib Contains No Actual Rib Meat

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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.

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

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

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

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How much can franchisees make? It’s a question many prospective owners ask before investing in a franchise. While earnings tend to be driven by variables such as industry, location and general management skills, a proper understanding of the key factors driving profitability can help franchise owners develop expectations that are realistic.&nbsp;Multi-unit franchisee&nbsp;<a href="https://www.linkedin.com/in/mangesh-patel-9368569/">Mangesh Patel</a>, who’s readying the launch of six&nbsp;<a href="https://www.beefobradysfranchise.com/">Beef ‘O’ Brady’s</a> restaurant locations in the Macon, Georgia area, shares insights from his franchising experience.<h2>Understanding Franchise Income</h2>Keeping operational costs in check can have a major impact on overall earnings. Taking a proactive approach to expenses such as food and labor, as well as payroll and scheduling, can help align actual franchise income with general expectations for the business.“I just had a meeting with a couple of people, and they said, ‘You talked about a 25% profit margin, but I’m only doing 12%.’ So, I looked at the figures they sent me,” Patel said. “Their&nbsp;<a href="https://1851franchise.com/calculate-restaurant-franchise-profit-2730476">restaurant</a> food cost was running at 37%, which should be around 30%. The national average is about 32%. If I do things correctly, my average food cost needs to be at or below 30%. And payroll should run around 18%. But many people run 25 to 28%.”So,&nbsp;<a href="https://1851franchise.com/unraveling-franchise-earnings-how-much-can-you-really-make-2723935">how much can franchisees make</a>? Here are five areas to consider.<h2>Practical Tips for Prospective Franchisees</h2><ol><li>Control Costs From Day One:&nbsp;It’s important to monitor payroll, food and supply costs closely. Overstaffing and inefficiencies can quickly reduce profits.</li><li>Plan For The Opening Surge:&nbsp;Traffic within the first few months of opening is likely to be higher. It’s important to adjust staffing and inventory accordingly, and pay close attention to how those levels change as time goes on.</li><li>Invest In Training:&nbsp;Properly trained workers can help reduce waste and improve overall service, which has a direct effect on net income.</li><li>Understand Your Market:&nbsp;Each market is unique and revenue potential will vary depending upon location, demographics and competition.</li><li>Track Metrics Regularly:&nbsp;Food cost percentages, labor ratios and weekly sales data act as key indicators operations may need to be adjusted.</li></ol><h2>What Profitability Really Comes Down To</h2>Patel notes that if franchise owners manage labor and costs properly, it’s not impossible to achieve strong cash flow even in the first year, bucking some franchising trends.So,&nbsp;<a href="https://1851franchise.com/how-much-can-you-make-as-a-franchise-owner-2724761">how much can franchisees make</a>? While results tend to vary, careful planning, disciplined operations and a proactive approach to assessing initial costs are essential. But by grasping and guiding the elements that drive franchise profitability, franchise owners can maximize overall business earnings, scaling a business that’s sustainable financially over the long term.Want to learn more about franchise opportunities on 1851 Franchise? Be sure to visit our&nbsp;<a href="https://1851franchise.com/power-rankings">Power Rankings</a> to read more on brands making moves.

How much can franchisees make? This guide explains what drives franchise earnings and how to manage costs, with expert tips from multi-unit owner Mangesh Patel on maximizing your franchise income.

How Much Can Franchisees Make? A Guide for Prospective Franchise Owners

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<a href="http://meltingpotfranchise.com">Melting Pot</a>, the 93-unit fondue franchise, recently celebrated its 50th anniversary. As it continues strategic growth nationwide and looks toward its next 50 years,&nbsp;<a href="https://1851franchise.com/meltingpot/info">Melting Pot’s</a> loyal fan base, hospitality focus and unique dining experience set the stage for its continued success. While many brands are measuring success by the speed of the drive-thru or the efficiency of an online order, Melting Pot is doubling down on the human element — something its leadership team knows technology will never be able to replicate. By leaning into its “superpower” and owning the Perfect Night Out, Melting Pot has nurtured a brand that creates lifelong memories and is passed down through generations.“Melting Pot is a restaurant, but it is so experiential and unique that we are filling more than an appetite. We are satisfying a craving for a unique social dining experience,”&nbsp;<a href="https://www.linkedin.com/in/dan-stone-cfe-b6b2808">Dan Stone</a>, chief business officer, told 1851 Franchise publisher&nbsp;<a href="https://www.linkedin.com/in/powills/">Nick Powills</a> on a&nbsp;<a href="https://www.youtube.com/live/9FYPdaORvEw">recent episode of the “Meet the Franchise” podcast</a>. “You look at a typical table and the kids are not on their phones or tablets. If they do have a phone out, it’s because they are filming the magic happening at the table. They are very engaged with one another.”After its 1975 founding, Melting Pot quickly grew to be synonymous with fondue dining across the U.S. and is still known for the multi-course, communal dining experience it provides today. In recent years, the leadership team has embraced changes that keep Melting Pot current like modernizing the interior design and adjusting the menu to include items that feel more approachable for “just because” visits, but the heart of the brand has stayed true.“Our brand’s purpose is celebrating life with the people you care about,” Stone said. “People don’t buy what you do; they buy why you do it.&nbsp;What we do is fondue. And that drives our engine. We’re better than anybody on a national scale at fondue. But the&nbsp;why we do it is to celebrate life, and that can be anything from a report card to a birthday or 10-year anniversary.”With over 90 locations in more than 30 states, Melting Pot offers a unique proposition for entrepreneurs: a restaurant model that is known and cherished among guests nationwide, and one that prioritizes leadership capacity and hospitality spirit over specific restaurant experience in its prospective owners. As the brand looks forward to its upcoming growth and considers what the next 50 years may hold, the strategy is simple. While Melting Pot will implement new tools and technologies and adapt to the changing business landscape as needed, it won’t forget its heart. Maintaining a focus on its niche, Melting Pot proves that, in a crowded food service landscape, being in a category of one is the ultimate competitive advantage.A transcript of Stone’s interview with Powills appears below. It has been edited for content, brevity and style.Nick Powills: All right, Dan, I like to start with you, and then we'll get into the brand. Question one is scripted; everything else is not. But I know you have a great story. How did you accidentally fall into franchising? What is your franchise backstory?Dan Stone: I’ll keep a long story short. I am obsessed with roller coasters and theme parks and have been since I was a kid. I wanted to major in theme park management, so I went to my guidance counselor in high school to figure out what colleges offered it. I was really disappointed to learn that didn't exist, and the closest thing to it was hospitality management — hotel and restaurant management.I went to school for hotel and restaurant management, and for the first 10 years of my career, I worked for a hotel management company. Most hotel brands are franchised, so we managed hotels for owners who were franchising Marriott, Embassy Suites, Hilton and other brands. That was my exposure and introduction to franchising. I then took my franchise and food and beverage background from the hotel side to Melting Pot when I joined nearly 20 years ago.Powills: That’s crazy. Before I get to Melting Pot, I’m curious — and this relates back to what franchisees and even what I go through — I wanted to be a baseball player who rode a motorcycle. I had to be good at baseball for that to happen, so it wasn't going to happen. But you have this dream. There are games like RollerCoaster Tycoon that allow you to build your theme parks. Flash forward: How do you let go of that dream and let it evolve into a 20-year career at Melting Pot and still look in the mirror in the morning and say, "I did live my dream"? How do you go through that mentally?Stone: Great question. Obviously, I’m not managing a theme park today, but I have manifested elements of that dream by making a point to travel, visit theme parks, ride new roller coasters, and stay up to date with the industry. The dream has become more of a passion and a hobby outside of work.The hospitality industry is very similar to a theme park. While I’m not managing roller coasters, I am very much in the people business; I just happen to be in the business of fondue versus thrill rides. If you strip that away, most everything else is the same. It’s about managing people, getting the right people on the team, and delivering an experience to the customer that they’ll never forget. Melting Pot is so experience-based that the dream shifted. I’m still satisfied 20 years later with this detour and how I’m getting my theme park fix.Powills: If I think about the feeling a human gets from a theme park or a roller coaster, it’s an emotion. Restaurant brands that can deliver a similar emotion create a memory, and a memory is what eventually brings them back or builds an affinity for the brand. Even though a bite of food is not the same as a ride, there are a lot of similarities.When I accidentally fell into franchising as a journalist, I found it fascinating that almost everyone who bought a franchise had to go through some sort of pain or breakthrough to say, "I’m going to quit my job and open a business for myself." I found it rewarding to find a similarity in my passions so that I wouldn't have regret. Food and hospitality must align with the experience of a theme park or a roller coaster to work, right?Stone: Absolutely. In a typical restaurant, most guests are there primarily to fill a need and satisfy an appetite. Their body says it’s time to consume, so they go eat. That drives a lot of dining out. Melting Pot is a restaurant, but it is so experiential and unique that we are filling more than an appetite. We are satisfying a craving for a unique social dining experience.You look at a typical table and the kids are not on their phones or tablets. If they do have a phone out, it’s because they are filming the magic happening at the table. They are very engaged with one another. In a typical restaurant, the kids feel like it’s the last place they want to be; they aren't having conversations with their family. That is the magic of Melting Pot.Powills: I didn't know your affinity for theme parks. That experience is part of the magic a franchise buyer sees when they buy into Melting Pot. They see something different. You can see it when the kids are engaging at a table and not stuck on a phone. They aren't just going there to feed an appetite; they're going there to feed the emotion.Stone: Exactly. Our brand’s purpose is celebrating life with the people you care about. I remember the Simon Sinek TED Talk about starting with the "why." People don't buy what you do; they buy why you do it. Why we do what we do is celebrating life; what we do is fondue. We are better than anyone on a national scale in fondue, but the "why" we do it is to celebrate life, and that can be anything from a report card to a birthday or 10-year anniversary.So many guests get engaged at Melting Pot because their first date was there. We see them every year on their anniversary. Our franchise owners have an opportunity to be a part of milestone moments that people keep forever. The emotional connection our brand has with our guests is truly something special. The people who join our system are energized by enhancing whatever occasion someone chooses Melting Pot for. That’s how the brand continues to grow 50-plus years later. There are not many brands that have been around 50 years, particularly in the restaurant space.Powills: I think about my own Melting Pot experience. I love it, and I used it as my "date spot" early on. I can go back to a memory instantly. I like Olive Garden, but there is no memory there other than a recognition that I enjoyed the taste.The challenge is that while I have great affinity, Melting Pot is not in the normal mix for me due to proximity or my schedule. How does a brand like this take the stickiness of that memory into the next 50 years?Stone: It is a double-edged sword. When Melting Pot is your special occasion place, we see you every anniversary like clockwork. The flip side is that some guests don't want to dilute that destination by going on a Tuesday night. We own the fact that we are a special occasion restaurant; we would rather have that consistency every year than a hot-and-cold customer.The challenge in a competitive landscape is to attract new customers who also choose us as their special occasion restaurant. Because we aren't a concept where the average guest comes once a month, we must ensure we deliver on the "Perfect Night Out"—our service mantra—so they return for the next occasion. It often permeates into other occasions, like a child’s Sweet 16.Powills: It’s a volume play. A theme park only works if you have that continuing build-up. It turns into a challenge to reintroduce the brand to customers and say, "You haven't been here in a year and a half; come back for X, Y or Z because we have a new ride." It turns into a volume game.Stone: 100%. Universal and Disney are good for each other because they try to outdo each other with new attractions, which is good for Orlando as a whole. Rising tides lift all boats. We need to continue giving guests reasons to come back because there is no shortage of options or larger brands with commercials on TV.Over the last six years, we’ve focused on a major remodel and refresh of our restaurants called "Melting Pot Evolution." It is the single biggest investment into the brand’s physical plant to stay relevant with today’s and tomorrow's consumers. That includes a refreshed logo, changes to the menu, and approachable areas of the restaurant so you don't need a major occasion to visit. We are nearing the completion of that evolution, with about 15 stores left out of nearly 100 set to finish this year.On the food and beverage side, we are focusing more on food trends. We did a Dubai chocolate fondue this past year, and we now have a cadence for food trends. We are also introducing seasonal "Big Night Out" menus — our most popular four-course experience — to offer limited-time flavor profiles.Powills: If Melting Pot is around 50 years from now, what do you think the next big "X" factor is?Stone: If Melting Pot stays true to its North Star and its superpower—which is fondue—it will be around for the next 50 years. If we try to be all things to all people and dilute our superpower, it will water down the magic and weaken our differentiation. For me, it’s not about a 90-degree turn; it’s about honoring our niche. Don't apologize for it; lean into it.Powills: I agree. It’s like the scene in Apollo 13 where they throw everything on the table and say, "This is what we have to get the boys home." If we look at the menu, you can get it all at Melting Pot, plus the experiential side.There is also the opportunity with "kids of kids." After 50 years, we remind the next generation of what it felt like to be a kid in Melting Pot. Now it’s your turn to hand that experience down to your child.Stone: Two things on that. First, on innovation: The cheese course is where most guests start. What if the entree is served with cheese and you dip your proteins into it? That’s using the existing menu but offering it in a way that is not traditionally done.Second, on the nostalgia: A lot of people love Disney World because of the memories they created as a kid. If you go for the first time as an adult, there’s a disconnect. At Melting Pot, kids are actually encouraged to play with their food. They love it for homecoming, prom, and graduations. We might lose them a bit in college when they are on a budget, but they re-engage as young professionals and then bring their own kids. It’s an interesting cycle.Powills: I want to swing into the franchise positioning. What is the value to a franchisee looking at this opportunity?Stone: We do not require a restaurant background. Despite being a restaurant with high-level service and a healthy check average, you do not need to be a restaurateur or a chef. The guest does the cooking. You need to be people-oriented. We are in the people business; we just happen to serve fondue.Having an entrepreneurial spirit is important — someone who can become the "mayor" of their community. As a brand, we gave over $1.2 million to St. Jude Children's Research Hospital this year. We believe in giving back. Franchising is about being in business for yourself, but not by yourself.Melting Pot won't be on every street corner. This is not a burger, pizza, or sandwich shop. In many markets, one or two locations fill the need. You have an opportunity to own something truly unique that isn't a cookie-cutter concept. You can own the only one in your entire metro area.Powills: It’s more than a "widget." It takes a special buyer. On the positive side, you're in a category of one; on the negative side, you're in a category of one.Transparency and expectation-setting are critical in business. The only way you get to 50 years with franchisees who stay in the system and advocate for the brand is if you set expectations. You've done a tremendous job with the customer, the community, and the franchisee. If you've ever thought about owning something where you feel good about it, it costs nothing to reach out. Any closing thoughts?Stone: If we do not have a Melting Pot in your backyard, I encourage you to check out our locations during your travels. We are in 32 states, coast to coast. There is nothing quite like the experience itself; words cannot properly capture it.Watch the full podcast above or on&nbsp;<a href="https://www.youtube.com/live/9FYPdaORvEw">YouTube</a>. To find out more information on costs to buy this franchise, please visit&nbsp;<a href="https://1851franchise.com/meltingpot">https://1851franchise.com/meltingpot</a>.&nbsp;

In a landscape where many brands prioritize speed and technology over the guest experience, the iconic fondue franchise is staying true to its hospitality roots and experiential dining model.

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