1851

State tax policies play a pivotal role in shaping the profitability of franchise businesses. From corporate tax rates to personal income taxes and sales tax burdens, the financial environment of a state can either boost a franchise's bottom line or chip away at its profits. The&nbsp;<a href="https://www.richstatespoorstates.org/publication/rich-states-poor-states-17th-edition/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-state-tax-policies-influence-franchise-profitability-insights-from-the-2024-alec-laffer-report-2727677" target="_blank" rel="nofollow">2024 ALEC-Laffer "Rich States, Poor States" report</a> offers a comprehensive analysis of how different states rank in terms of economic competitiveness, with a specific focus on the impact of state-level tax policies.<h3>The Critical Role of Tax Policies</h3>The ALEC-Laffer report evaluates the economic outlook of states based on 15 policy variables, many of which are directly related to taxes. These include:<ul><li>Personal Income Tax Rates: Lower taxes on personal income allow franchisees to retain more earnings, making their operations more profitable.</li><li>Corporate Tax Rates: States with lower corporate tax rates reduce the burden on businesses, allowing for better profit margins and reinvestment in growth.</li><li>Sales Tax Burden: High sales taxes can affect consumer spending and increase the cost of doing business, influencing how franchisees set their prices and manage profitability.</li></ul><h3>Top States with Franchise-Friendly Tax Policies</h3>According to the 2024 ALEC-Laffer report, the states that rank highest for economic outlook — such as&nbsp;Utah,&nbsp;Idaho and&nbsp;Texas&nbsp;— all share a common trait: low tax burdens. These states implement pro-business tax policies that allow franchisees to maximize profitability.<ul><li>Utah: Ranked as the state with the best economic outlook for 17 consecutive years, Utah offers a flat personal income tax and it&nbsp;<a href="https://le.utah.gov/~2024/bills/static/HB0066.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-state-tax-policies-influence-franchise-profitability-insights-from-the-2024-alec-laffer-report-2727677" target="_blank" rel="nofollow">recently introduced reforms to its property tax system</a>. These policies create a business-friendly environment that attracts franchises and allows them to flourish.</li><li>Idaho: Jumping from 4th to 2nd place in this year’s report,&nbsp;<a href="https://gov.idaho.gov/pressrelease/idahoans-to-receive-76-5-million-in-more-property-tax-relief/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-state-tax-policies-influence-franchise-profitability-insights-from-the-2024-alec-laffer-report-2727677" target="_blank" rel="nofollow">Idaho’s recent tax cuts</a> have made it an attractive destination for both businesses and individuals. The state’s reduction in corporate tax rates has been a major driver of franchise profitability.</li><li>Texas: Now ranked 6th, Texas has made its biggest leap in 17 years, thanks to significant&nbsp;<a href="https://gov.texas.gov/news/post/governor-abbott-signs-largest-property-tax-cut-in-texas-history?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-state-tax-policies-influence-franchise-profitability-insights-from-the-2024-alec-laffer-report-2727677" target="_blank" rel="nofollow">2023 tax cuts — the largest in state history</a>. With no personal income tax and a favorable corporate tax rate, Texas is a prime state for franchise growth.</li></ul>These states, with their pro-growth, low-tax environments, are attracting both residents and businesses. For franchisors, these regions represent opportunities to expand with lower operational costs and higher profitability potential.<h3>Tax Challenges in Low-Ranking States</h3>While states like Utah and Texas are ideal for franchise expansion, others present significant challenges due to high tax burdens. States that rank at the bottom of the 2024 ALEC-Laffer economic outlook report — such as&nbsp;New York,&nbsp;California and&nbsp;Illinois&nbsp;— tend to have higher taxes on personal income, corporate profits and property, making it more difficult for franchisees to succeed.<ul><li>New York: Consistently ranked last in economic outlook, New York imposes some of the highest taxes in the country. With high personal, corporate and property taxes, franchisees operating in New York face substantial financial burdens that cut into profitability.</li><li>California: Ranking 47th, California's high corporate tax rates, combined with elevated sales taxes and regulatory costs, make it a challenging environment for franchises. Franchisees need to carefully consider these costs when entering the market as they can erode profit margins.</li><li>Illinois: Similarly, Illinois’ high tax rates and fiscal challenges put pressure on franchises operating within the state. With an unstable tax policy environment, franchisees may find it difficult to maintain profitability without carefully managing their financial strategies.</li></ul><h3>The Personal Income Tax Factor</h3>One of the key differentiators in state rankings is personal income tax. States with no personal income tax — such as&nbsp;Florida,&nbsp;Texas and&nbsp;South Dakota&nbsp;— consistently rank high in economic outlook. Lower personal taxes not only make these states attractive to residents but also reduce the financial burden on franchise owners. This allows them to reinvest more profits into their businesses or expand their operations more quickly.Conversely, states with high personal income tax rates often face outmigration, as residents seek more financially favorable locations. “Americans are voting with their feet and fleeing the high-tax, high-regulation states for pro-growth, pro-employment havens,” said&nbsp;<a href="https://alec.org/person/jonathan-williams/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-state-tax-policies-influence-franchise-profitability-insights-from-the-2024-alec-laffer-report-2727677" target="_blank" rel="nofollow">Jonathan Williams</a>, chief economist at ALEC, in a&nbsp;<a href="https://www.washingtontimes.com/news/2024/apr/9/utah-still-top-business-friendly-state-say-conserv/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-state-tax-policies-influence-franchise-profitability-insights-from-the-2024-alec-laffer-report-2727677" target="_blank" rel="nofollow">press release</a>. This migration can affect the labor market and customer base, further impacting franchise profitability in high-tax states.<h3>Corporate Tax Rates and Franchise Expansion</h3>Corporate tax rates are another critical factor for franchise owners. In states with lower corporate taxes, franchisees can retain more of their earnings, invest in marketing, hire more staff or open additional locations. States like&nbsp;Indiana and&nbsp;North Carolina have both seen improvements in their rankings thanks to corporate tax reforms, making them increasingly attractive for franchisors.Franchises operating in states with higher corporate tax rates, such as&nbsp;New Jersey and&nbsp;California, face additional challenges in maintaining profitability. The higher the corporate tax, the more pressure there is on franchisees to either cut costs or raise prices, both of which can affect long-term success.<h3>Conclusion: Tax Policies as a Franchise Profitability Driver</h3>State tax policies have a direct and significant impact on&nbsp;<a href="https://1851franchise.com/can-you-get-rich-owning-franchises-2715618">franchise profitability</a>. Franchisors looking to expand should prioritize states with low personal and corporate tax burdens, as these environments allow for higher margins and better business conditions. The 2024 ALEC-Laffer report is an invaluable tool for identifying these franchise-friendly states.“While the federal government continues their never-ending descent into a record-setting $35 trillion debt, the only last point of refuge for fiscal sanity rests in our 50 laboratories of democracy — the states,” said Williams. For franchisors, this means choosing to operate in states that encourage business growth through smart tax policies is more important than ever.Ultimately, the right tax environment can make or break a franchise’s ability to thrive. By leveraging the insights from the ALEC-Laffer report, franchisors and franchisees can make data-driven decisions that enhance profitability, improve scalability, and ensure long-term success in the right markets.

State Tax Policies and Franchise Profitability: Insights from the 2024 ALEC-Laffer Report

1851 Franchise

For franchisors and franchisees alike, understanding how taxes impact profitability is essential when planning expansions or operations in various regions. 

How State Tax Policies Influence Franchise Profitability: Insights from the 2024 ALEC-Laffer Report

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Busy Bee Jumpers

Jump Ahead: How Busy Bee’s Technology Gives Franchisees a Booking and Deployment Edge

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Jollibee

How Jollibee’s Flexible Real Estate Strategy Is Opening Doors in Nontraditional Markets

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How Mellow Mushroom’s Flexible Formats Help It Adapt to Every Market Opportunity

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HomeTeam Inspection Service

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Top 5 Reasons to Buy a HomeTeam Inspection Service Franchise in 2026

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America's Swimming Pool

America's Swimming Pool Franchise - Justin and Kimberly Retzlaff - 1851 Franchise

How Justin and Kimberly Retzlaff Built an America’s Swimming Pool Co. Franchise and a Routine That Works

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Private Equity Fuels Jiffy Lube’s Next Chapter as Monomoy Strikes $1.3 Billion Deal

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McDonald’s and Burger King Take the QSR Burger Wars to Social Media

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Yum! Brands Pizza Hut Sale - 1851 Franchise

Possible Pizza Hut Sale Signals Shift in Yum! Brands’ Franchise Strategy

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Restaurants Stand Out in 2025 Hiring as Consumers Look for Simple Treats

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KBP Brands Acquires 78 SONIC Locations Across Five States

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Name:&nbsp;<a href="https://www.linkedin.com/in/angela-baker-a25494106">Angela Baker</a> Role:&nbsp;Director of Marketing Brand:&nbsp;<a href="https://griswoldhomecarefranchise.com/">Griswold</a> <a href="https://1851franchise.com/griswold">1851 Newsroom</a>Angela Baker, director of marketing at Griswold, recognizes that, while consistency throughout a franchise system is key for successful marketing, clarity is more important than volume. Drawing on a background in technical manufacturing and her own experience working for a franchisee as a teen, Baker also knows that effective marketing must be digestible and attainable for operators. With this in mind, she focuses on “designing for humanity at scale” and sending out trust signals that support franchisees in showing up as genuine, compassionate home care resources in their communities.<h2>Q&amp;A With Angela Baker, Director of Marketing, Griswold</h2>1851 Franchise: How did you find your way to franchising and franchise marketing?Angela Baker:&nbsp;Before entering franchising, I worked in marketing for a manufacturing metrology distributor representing multiple European product lines in the U.S. On the surface, those brands appeared similar, but in practice, each had very different value propositions, decision-makers and barriers to adoption. That experience taught me early on that effective marketing isn’t about a single message; it’s about understanding who you’re speaking to, what problem you’re solving and how much change you’re asking them to absorb.That mindset translated naturally into franchising. I was drawn to the opportunity at Griswold because franchise marketing sits at the intersection of brand strategy and real-world execution. The work we do at the franchisor level doesn’t just affect awareness; it directly impacts the livelihood of individual owners operating in very different markets.I also bring a franchisee’s perspective to the role. As a teenager, I worked at a franchise location and saw firsthand how overwhelming it can be when initiatives change too quickly or lack clear execution guidance. That experience shaped how I approach marketing today: it has to be effective, but it also has to be digestible and feasible for owners who are running operations, managing compliance, and serving their communities.Ultimately, franchise marketing resonated with me because it allows you to build systems that scale while still honoring local ownership. When done well, it gives small business owners the power of a national brand without taking away their identity, and that’s where I find the work most meaningful.1851: What makes franchise marketing uniquely challenging (and rewarding) compared to corporate-only marketing?Baker: Franchise marketing is uniquely challenging because you’re never marketing to a single audience. You’re stewarding a brand at scale while supporting owners who operate in very different markets, communities and realities. The work requires constant balance, protecting brand consistency while creating space for local relevance.Unlike corporate-only marketing, success isn’t just about launching a strong campaign. It’s about designing frameworks that are clear, flexible and repeatable so franchisees can execute confidently without feeling overwhelmed or disconnected from the brand.What makes it rewarding is the impact that balance creates. Franchise marketing allows national strategy to show up locally in a way that feels human. A social post, an ad or a community partnership can move beyond promotion and become a genuine point of connection, especially in an industry like home care, where trust and community presence matter deeply.When franchise marketing is done well, the brand feels both established and personal. You can be a national organization and still show up as a neighbor, a resource, and a trusted part of the community. Seeing that come to life through local stories, caregivers and families is what makes the complexity worthwhile.1851: What is the single most powerful lever a marketing team can pull to directly impact franchisees’ profitability at the unit level?Baker: In franchise marketing, the most powerful lever isn’t a single channel; it’s enabling consistent, credible presence across the entire customer journey. Especially in industries like home care, where the decision cycle is long and deeply emotional, trust is built over time through multiple touchpoints.Families aren’t making an impulse purchase. They’re researching reviews, visiting websites, observing social presence and looking for signals that a brand is active, compassionate and rooted in the community. Profitability at the unit level is directly impacted by whether a franchisee can show up well in those moments without marketing becoming too overwhelming.The role of the franchisor marketing team, then, is to reduce friction. That means giving franchisees the tools, frameworks and guidance to execute the fundamentals: local websites, reviews, social content and referral materials, quickly and effectively. When those basics are easy to maintain and aligned to the brand, franchisees can build trust faster, convert with confidence and focus their time on serving clients.When you lower the barrier to consistent execution, you don’t just improve marketing performance. You directly support unit-level growth.1851: What is an untapped marketing opportunity you see for franchise brands?Baker:&nbsp;One of the most underutilized opportunities in franchise marketing is designing for humanity at scale. As brands adopt more technology to drive efficiency, many lose sight of the fact that trust, especially in service-driven industries, is still built through human connection.The opportunity isn’t choosing between innovation and authenticity; it’s intentionally building systems that allow both to coexist. Franchise brands are uniquely positioned to do this well because they operate locally, in real communities, with real people. But that only works if marketing frameworks encourage empathy, education and genuine connection, not just output.In home care, families aren’t just looking for services; they’re looking for reassurance, guidance and understanding during one of the most difficult moments in their lives. Marketing that succeeds in the future will act less like promotion and more like a guide, providing clear information while showing that the brand truly understands what people are going through.Brands that can operationalize empathy, embedding it into their content, their local storytelling and their customer journey, will stand apart as technology continues to accelerate. That balance will become a competitive advantage.1851: What is one marketing fad or buzzword that you believe will actually deliver real results in the coming year?Baker:&nbsp;One marketing concept that’s often dismissed as a buzzword, but will deliver real results, is the intentional use of trust signals. As consumers become more skeptical of traditional advertising, they’re looking for proof, not promises.In service-based franchises with long, emotional decision cycles, trust is built through consistency across reviews, local visibility, educational content and community presence. These signals tell a story about who you are long before someone ever picks up the phone.Brands that treat trust as a growth strategy, actively managing reviews, showing up as a resource and demonstrating reliability across every channel, will outperform those chasing short-term attention. In the coming year, the brands that win won’t be the loudest; they’ll be the most credible.1851: What’s your boldest franchise marketing take?&nbsp;Baker:&nbsp;My boldest franchise marketing take is that more marketing won’t save weak systems. Many franchise brands continue to add campaigns, channels and tools, while franchisees struggle to consistently execute the fundamentals. In the long run, volume doesn’t win, clarity does.Over the next five years, the brands that succeed will be the ones that simplify execution, invest in strong foundational systems and support franchisees in showing up consistently across key touchpoints. Marketing effectiveness will be defined less by how much you do and more by how well your systems enable local owners to operate with confidence.Want to learn more about how 1851 helps franchisors grow their franchises with confidence? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and see what we can do for you.

1851 Franchise Top Marketing Leaders, Angela Baker, Griswold

Baker discusses how, for the home care brand, prioritizing clarity over volume, recognizing the power of trust signals and designing for humanity at scale are key drivers of franchise success.

Top 25 Franchise Marketing Leaders: Angela Baker — Director of Marketing, Griswold

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For more than 15 years,&nbsp;<a href="https://hellomainland.com/">Mainland</a> has secured coverage for brands on FOX, NBC, CBS and ABC, as well as placements in local outlets such as&nbsp;<a href="https://www.noozhawk.com/">Noozhawk</a> in Santa Maria, California, or&nbsp;<a href="https://tbbwmag.com/">Tampa Bay Business &amp; Wealth</a>. With hundreds of PR placements each year, there must be some secret sauce to their stories — a possible angle that is irresistible to a producer who doesn’t seem interested in anything you have to offer. A secret phrase that unlocks doors and turns on TVs in your target market.&nbsp;What if we told you the answer was simple?<h3>Let’s Do an Experiment</h3>Imagine a franchise brand is opening its doors in your city, and you see this headline on Facebook:&nbsp; National Fitness Franchise Announces Expansion Into Downtown With Three New Territories Signed.If you were a news producer, that headline might not inspire much beyond construction and, maybe, a grand opening months down the line. By the time the scissors are ready to cut, you’ve moved on.&nbsp;Now try this:&nbsp; After a Career-Ending Injury, Former Ohio Track Athlete Is Bringing National Fitness Franchise to Combat the City’s Post-Pandemic Health Crisis.See the difference? Maybe images of a former athlete jumping a hurdle spring to mind, or an in-studio demonstration. Suddenly, there’s an opportunity to highlight statistics around an important, timely health issue that the brand is working to address.&nbsp;Framing matters. People matter — more than brands think. This isn’t just a happy accident of copywriting. It’s a calculated editorial strategy that is heavily implemented at Mainland to land placements and media buys.<a href="https://www.linkedin.com/in/morgan-wood1/">Morgan Wood</a>, content manager at Mainland, has personally published more than 2,000 articles for&nbsp;<a href="http://1851franchise.com">1851Franchise.com</a>. She is the exclusive writer for record-breaking brands like&nbsp;<a href="https://1851franchise.com/layneschickenfingers">Layne's Soon To Be Famous™ Chicken Fingers</a> and&nbsp;<a href="https://1851franchise.com/parisbaguette">Paris Baguette</a>.&nbsp;&nbsp;To understand how to consistently find the "human hero" in brand stories and start winning at PR, 1851 Franchise sat down with Wood to get some recommendations.1851 Franchise:&nbsp;How do you approach writing and telling someone's story?Morgan Wood: I've always been a “why person.” You know those little kids that ask a question, and you answer, and they say, “But why? But why? But why?” That was always me as a kid. I think I have a natural curiosity for everything, and I really think that everybody has an interesting story. It's just a matter of getting to it.A lot of times, the franchisees we’re working with will come on the call and say, "I don't know why you want to talk to me. My story is not that interesting.”&nbsp;There's a level of fulfillment and satisfaction in being able to see them see themselves in someone else's eyes and realizing what their story can mean and can do. It’s really fun.1851:&nbsp;What do you think about Mainland’s “Brands don’t sell brands, people do” method?Wood:&nbsp;When I'm browsing, I'm going to click on stuff that I feel like I relate to or something that is a human interest story.In franchising, people often think, “I'd love to do that, but I don't know if I can,” or “Somebody else can do it, but I just can't.”&nbsp;Being able to see the kind of person that's doing it, and, no matter who you are, there's someone who has a similar background or that you can relate to in some way, that has done it. I think putting that out there makes people curious. And then you click in, and it's their life story and their experiences. The reader likely doesn’t know this person, specifically, but it’s possible they have very similar experiences.I think that can draw people in more effectively than “This restaurant is growing!” or “This business is opening!” ever could.1851: How do you tell your writers to find the human hero in the story?Wood:&nbsp;We have talked a lot about continuing to ask the questions. Again, everyone has a story. We just have to get to it. I've said countless times, “Just keep asking. There has to be something. Think outside the box. Get curious on these calls with the franchisee, and really think about what is special about this person.”&nbsp;One of our questions for franchisee feature interviews is “What do you want me to know about you?” That opens it up. Regardless of your business or what you did before you bought a franchise, what do you want me to know about you?Being able to do that and dig deeper, even when there may not be an immediate connection between this story and their franchise journey, is really valuable. There have been times when it “clicks” later, and the writer realizes, “Oh, that's why they're the hero!”1851: Headlines and images are the first two things that people see. Are there any tricks in your bag when it comes to headlines and imagery to get picked up?Wood: Specifically in headlines, we want to talk about the human hero, but we don't necessarily want to say their name. We want to say who they are.&nbsp;More people are going to search for things like “veteran franchisee” or “moms in franchising”&nbsp; rather than a name that they’ve never heard before.It also has to be interesting, but you can't give everything away in the headline.&nbsp;And then with the image, just as much as possible, get a picture of a real person. It’s as simple as having something that people care about, and something that will catch a reader’s eye. If we’re talking about a person, we don’t want a stock image that someone will scroll right past.1851: Do you have any advice that you would give brands looking to get started right away?Wood: I think many in the franchise space have heard of the franchise horror stories: “I pay my franchise fee and the franchisor disappears,” or “I'm just a store number to them, I'm not a person.”One of our clients often says that, to be a franchisor, you need to understand what the franchisee is going through. When someone at the franchisor gets home from work, their family will ask, “How was work?” When a franchisee gets home, their family is asking, “How were sales today?” or “How was traffic?” These are franchise units, but they often represent the investment of someone’s life savings and a manifestation of so many hopes and dreams for the future. We can’t lose sight of that.&nbsp;No matter how big the brand gets or how fast they're growing, franchisors need to remember that these are real people with real backgrounds. Many have real families that this is supporting, and they've invested so much into this business. They’re building something in their communities and trying to make the most of the opportunity.They can’t just be viewed as “the person that's going to help me get a PR win.” They're still people. When you start from a place of humanity, the rest comes more naturally.Growing and selling franchises is difficult. Want to learn more about how Mainland helps franchisors grow their franchises with confidence? Visit&nbsp;<a href="https://hellomainland.com/">https://hellomainland.com/</a>&nbsp;and see what we can do for you.

image of morgan wood, content manager at mainland, pr methods at mainland

Content Manager at Mainland, Morgan Wood, shares the vital theory behind achieving PR success for franchise brands and beyond.

How To Craft PR Stories That Connect: How Mainland Focuses On The Human Hero Of A Story

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Many entrepreneurs start with a proven business and a hope that, once they begin franchising, growth will naturally follow. But moving from founder to franchisor requires more than demand. It requires clarity of purpose, honest positioning and a deep understanding of what it truly means to be responsible for other people’s livelihoods.<a href="https://www.linkedin.com/in/kristenchristian/">Kristen Christian</a>, founder of&nbsp;<a href="https://beeorganized.com/pages/franchise-opportunities">Bee Organized</a>, believes that franchising starts with a gut check around mission, purpose and obligation.“We’re very clear about it here,” Christian told&nbsp;<a href="https://www.goodsparkfranchise.com/">GoodSpark Franchise Growth Accelerator</a> CEO&nbsp;<a href="https://www.linkedin.com/in/charles-internicola">Charles Internicola</a> in a recent episode of the&nbsp;<a href="https://www.youtube.com/watch?v=7jr_McWgEO8">“Building a Franchise Brand”</a> podcast. “When we’re talking about our mission for our ultimate consumer, it is basically helping people live better lives through organization. And then over here on the franchising side, really our mission is to help people build the business of their dreams to be happy and profitable.”In many cases, it’s this type of clarity — and willingness to define what a brand truly stands for — that separates short-term franchise growth from long-term franchise success. Here’s a blueprint for founders looking to build a franchise brand with real staying power:<h2>Define the Mission on Both Sides of the Business</h2>In the early days, it was easy for a founder to focus almost exclusively on product, service and operations. But franchising forces founders to zoom out and define why the business exists in the first place.Christian explains that Bee Organized operates with two simple but powerful missions: one for the end customer and one for the franchise owner.“That drives us and is kind of our litmus test of how we make decisions,” she said.For founders, this means clearly answering two questions:<ul><li>Who does your business serve, and how does it improve their life?</li><li>What does success look like for the people who will own your franchise?</li></ul>Without clear answers, it becomes difficult to build alignment across marketing, training, support and culture.<h2>Own Your Position in a Crowded Market</h2>“There’s a lot of noise out there,” Christian said. “We’ve got to know where we are in that lineup and really kind of stand up and own who we are.”Bee Organized positions itself as a home-based, lower-startup, lower-overhead service business that can begin as supplemental income and grow into replacement income. It is also unapologetically mission-driven and relationship-focused.Strong positioning is not about appealing to everyone. It is about clearly stating who the opportunity is for — and who it is not for.When founders try to stretch their positioning to capture every type of candidate, they often attract the wrong people. Honest positioning creates healthier expectations and stronger long-term alignment.<h2>Design a Scalable Model Without Selling an “Easy Button”</h2>Christian is direct about what Bee Organized is not: “If somebody is wanting the easy button, if somebody is wanting to replace a six-figure income right away, that’s not this,” she said.Early-stage franchise owners must be willing to roll up their sleeves, wear multiple hats and be deeply involved in building the business. Over time, the model can scale, but only if owners are willing to put in the work upfront.Founders do their brands a disservice when they oversell speed or simplicity. A scalable model still requires effort, patience and engagement. Saying that out loud protects both the system and the candidate.<h2>Treat Royalties as a Responsibility, Not Just a Revenue Stream</h2>Christian uses a race car analogy to explain the franchisor-franchisee relationship. “We give them the keys to that race car. That’s the franchise fee,” she said. “The royalty is us being their pit crew.”The pit crew is there to change tires, fix problems and help the car perform better. In franchising, that means providing ongoing support, training, tools and improvements.Royalties represent an obligation to over-deliver, not simply collect. The goal is for franchisees to know they are not alone and that the franchisor is invested in helping them reach their goals.<h2>Build a Relationship-First Growth Engine</h2>Without a brick-and-mortar location, service-based franchises rely heavily on local relationships. “You really have to go out and want to be the mayor of your marketplace,” Christian said.That means getting involved in the community, building referral partnerships and consistently putting yourself in front of potential clients and partners. Christian even encourages new franchisees to prioritize relationship-building in their first year.If a franchisee says business is slow, her first question is simple: how is your local marketing?Founders must bake this expectation into their model. Growth in service franchises is driven as much by human connection as it is by digital marketing.Founders-turned-franchisors are never truly finished building their system. Whether a brand has two locations or fifty, the work requires constant refinement, honest self-assessment and a commitment to putting the health of the system ahead of short-term sales.When franchising begins with mission, clear positioning and real responsibility, brands give themselves the best chance to create businesses that truly change lives.Watch the full podcast above or on&nbsp;<a href="https://www.youtube.com/watch?v=7jr_McWgEO8">YouTube</a>.For more information on GoodSpark and its services for developing franchises, visit&nbsp;<a href="https://www.goodsparkfranchise.com/">https://www.goodsparkfranchise.com/</a>.

When franchising begins with purpose instead of pace, brands gain clarity, attract better partners and build systems designed to last.

What It Really Means to Build a Franchise System  

what-it-really-means-to-build-a-franchise-system

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 To Sell Franchises in 2026 — Top Channels Franchise Buyers Use Before They Inquire

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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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Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

Franchise Opportunity Deep Dive: A drive-thru specialty coffee franchise focused on speed, quality and Southern hospitality.

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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.


Newk’s Eatery Franchise Costs, Fees, Profit and Data for 2026

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As the health and wellness business in America continues to fill out, the fitness industry is growing alongside it. The industry now generates&nbsp;<a href="https://www.ibisworld.com/united-states/industry/gym-fitness-franchises/5599/">over $7 billion</a> in annual revenue, with a revenue increase of nearly 3% in 2023 alone.Rebounding since COVID, both big box and boutique franchises have shown&nbsp;<a href="https://athletechnews.com/fitness-franchising-by-the-numbers-10-key-stats/">membership growth</a>, with premium establishments up 21% compared to a whopping enrollment bump of almost 70% on the budget gym side.&nbsp;&nbsp;<h3>The Pros And Cons Of Big Box Gyms</h3>When it comes to choosing the right fitness franchise, there are pros and cons to each.Big box gyms are able to cast a wider net, attracting a clientele ranging anywhere from newbie to seasoned veteran, with a lower cost of entry potentially attracting even the marginally curious to the idea of a well-established, properly marketed brand.&nbsp;Big box and other low-cost fitness franchises are also able to capitalize on services like personal training and retail amenities, increasing revenue.Driven by recurring membership fees, big box gyms generally cost less. However, the wider net cast in terms of building a clientele, tends to require more equipment in a bigger space, increasing costs like rent. And with a wider array of workout machines to both service and maintain, additional costs tend to follow.<h3>The Pros And Cons Of Boutique Fitness Concepts</h3>On the boutique side, franchises are typically able to offer a more personalized fitness experience, catering to niche markets with an eye on community, quality and loyalty. However, a more hands on approach to management and day-to-day operations may also be necessary to deliver the more customized, immersive experience often demanded of the more boutique environment.As a result, boutique fitness concepts are typically able to capitalize on a more premium pricing model driven by the idea of exclusivity.But, while less equipment in a smaller space can help rein in expenses, it can also be difficult to build the more specific clientele required by the boutique experience, rendering selection of proper location crucial.<h3>Finding The Right Fit</h3>As potential franchisees assess the available opportunities in the fitness franchise realm, it’s important to ponder a number of factors which can impact the bottom line.In terms of budgeting, a full understanding of both initial investment and ongoing operational costs is crucial.&nbsp;Getting to know the customer and surrounding area can help franchisees assess just how much the consumer is looking to pay for a gym membership, helping clarify the big box versus boutique decision when it comes to the question of how to buy a franchise.There’s also market saturation, with big box gyms in particular becoming an increasingly crowded marketplace.On the management side, it’s important for franchisees to seize upon a specific approach, whether it’s applying a more hands on style to the level of personal interaction required on the boutique side or focusing on the moving parts in play in the larger, more complex big box environment.&nbsp;When it comes to buying a fitness franchise, an understanding of the consumer, proper assessment of the marketplace and specific approach to management can go a long way towards avoiding potential risk, helping franchisees find success as they ponder entrepreneurship via fitness franchises.For more info on fitness franchises, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/fitness-franchises-2025-trends-opportunities-2729600">The Rise of Fitness Franchises in 2025: Trends, Opportunities and What to Expect</a></li><li><a href="https://1851franchise.com/top-health-and-wellness-franchises-2729821">Top 15 Health and Wellness Franchises Opportunities for 2025</a></li><li><a href="https://1851franchise.com/fitness-wellness-franchise-guide-2729443">How To Choose the Right Fitness or Wellness Franchise for You</a></li></ul>

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As the fitness industry continues to grow fast, the decision for potential franchisees lies in whether to invest in big box or boutique gym franchise opportunities.

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

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Window Genie Franchise - Deep Dive 2025 - 1851 Franchise

Franchise Opportunity Deep Dive: Window Genie is an owner-led, multi-service exterior cleaning brand with recurring demand and Neighborly backing that simplifies operations and supports growth.

How State Tax Policies Influence Franchise Profitability: Insights from the 2024 ALEC-Laffer Report

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