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While the COVID-19 crisis continues to cause stress and uncertainty for franchise businesses across the globe, one question stands out among the many being asked: How do we get to the other side of this situation?While there isn’t a simple answer, Erik Herrmann, partner and head of <a href="http://www.capitalspring.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-franchise-industry-can-get-to-the-other-side-of-the-coronavirus-crisis-2712923" target="_blank" rel="nofollow">CapitalSpring’s</a> restaurant investment group, says that the first place to start is gathering executive teams and working closely with franchisees. He said, “This is an all-hands-on-deck situation, so you have to make sure you have the lines of communication open.”Justin Waltz, vice president of operations for <a href="https://www.bigblueswimschool.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-franchise-industry-can-get-to-the-other-side-of-the-coronavirus-crisis-2712923" target="_blank" rel="nofollow">Big Blue Swim School</a>, agrees, adding that there are key pieces of advice going around that are worth considering while the crisis is showing no signs of an end date.He said, “The feedback that I’m seeing is to minimize layoffs as much as possible, bring back staff when you can get back into business, and get ready for a mass flood of consumer purchasing.”Preparing for that pent-up consumer demand is going to be a major factor that separates the brands that survive COVID-19 from the ones who suffer. While franchisors are finding ways to cut costs, that doesn’t necessarily mean that it’s time to pull back on brand messaging.“I really think that sales, marketing and business development teams need to be aggressive,” said Waltz. “It’s time to be out in front of customers with deals. You want to be the first to welcome back your consumers because when we get out of this, people are going to be excited to be out again.”He continued, adding, “This is an opportunity to grab market share. Business will come back—there’s going to be an incredible influx of consumer demand. That’s why brands need to be ready to hit the marketplace. Everyone will come back to their habits.”How franchise systems communicate with one another during the next few months will determine how they’re viewed by consumers and prospective owners down the line. According to Herrmann, so far, there has been a range of how brands have approached finding the silver lining in this situation.&nbsp;“What we’ve seen is that there are varying levels of performance across the country. Some brands are slower to respond while there are others that are way ahead of this,” Herrmann said. “That’s the learning — responsiveness is different from concept to concept. It’s important to have tight alignment between franchisees and franchisors. That will determine how you optimize and survive on the other side of this thing.”Herrmann adds that it’s important for franchisors to provide support for their franchisees throughout this entire process—not just for validation purposes, but to support their systems as a whole.&nbsp;“Franchisors generally have a more forgiving model than other standalone businesses because they’re more resilient. But right now, there has to be some pain sharing across franchise systems,” said Herrmann. “Smaller franchisees are going to be hurting right now, and the franchisor has to step in to help. If franchisees end up going dark, the franchisor suffers, too, so it’s in everyone’s best interest to be in it together.”Until more information is made available about what the “new normal” will be for businesses moving forward, the most important thing that franchisors can do to get to the other side of COVID-19 is simple.Said Waltz, “The only thing we can do right now is communicate until we know what the future will hold.”

How the Franchise Industry Can Get to the Other Side of the Coronavirus Crisis

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Industry experts tell 1851 Franchise how brands can prepare to emerge stronger than ever before on the other side of the current economic downturn.

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Jollibee

What Jollibee Learned From 100+ Corporate Units Before Franchising in the U.S.

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Wings and Rings

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Wings and Rings Launches Operating Partner Program to Reward Top Performers and Build Future Franchise Owners

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Homewatch CareGivers

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Homewatch CareGivers Franchise Network Comes Together in Reno for 2026 Conference

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Mister Sparky Electric

image of mister sparky franchise owner Michelle Glasson Levittown, Pennsylvania.

How This Mister Sparky Franchise Owner Is Building Opportunities for Women in the Skilled Trades

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Comfort Keepers

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Comfort Keepers® Opens 3 New In-Home Care Franchise Territories, Awards 6 More in Q1, and Earns Spots on Entrepreneur Franchise 500

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Jersey Mike's Takes First Steps Towards Initial Public Offering

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

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FTC Settlement Puts New Focus on Franchise Disclosure Standards - 1851 Franchise

FTC Settlement Puts New Focus on Franchise Disclosure Standards

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Applebee’s Franchisee Files for Bankruptcy as Dine Brands Moves to Acquire 53 Units - 1851 Franchise

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

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Why Skilled Trades Are Emerging as the Economy’s Most AI-Resilient Careers

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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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<a href="https://princestreetpizza.com/">Prince St. Pizza</a> has partnered with a&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-daves-hot-chicken-franchise-costs-fees-profit-and-data-2723529">Dave’s Hot Chicken</a> franchisee to support its national expansion,&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">Pizza Marketplace recently reported</a>. The New York-based brand has joined forces with&nbsp;<a href="https://www.linkedin.com/in/lawrencekourie/">Lawrence Kourie</a>, founder and largest franchisee of Dave’s Hot Chicken, to grow its footprint across the country. Kourie’s experience opening and operating locations in multiple markets will help the brand as it enters new territories."Lawrence has built and operated one of the fastest-expanding restaurant concepts in the country, but what stands out is his disciplined approach to growth and brand integrity," said&nbsp;<a href="https://www.linkedin.com/in/lawrence-longo-342856/?skipRedirect=true">Lawrence Longo</a>, CEO of Prince St. Pizza. "He understands how to develop a concept without losing what made it special in the first place, which is critical as we enter this next phase."The expansion will use Kourie’s existing infrastructure and operations to introduce Prince St. Pizza into new markets. Each location will aim to reflect the same experience as the brand’s original Nolita shop."I have spent years evaluating restaurant concepts, and it is rare to find one that delivers both a strong product and a clear identity," Kourie said. "What Prince St. has built is difficult to truly replicate. The focus now is on growing the brand in a way that preserves that foundation while introducing it to new communities."Kourie is a key operator within the Dave’s Hot Chicken system,&nbsp;<a href="https://1851franchise.com/daves-hot-chicken-sold-to-roark-capital-in-1-billion-deal-to-fuel-global-expansion-2729557#stories">which Roark Capital acquired in a $1 billion deal in 2025</a>. The partnership connects Prince St. Pizza to an operator with experience scaling a brand that has attracted major private equity investment.Read the full article&nbsp;<a href="https://www.pizzamarketplace.com/news/prince-st-pizza-partners-with-daves-hot-chicken-franchisee-for-national-expansion/#:~:text=Prince%20St.%20Pizza%2C%20a%20New%20York%2Dbased%20pizzeria,the%20country%2C%20according%20to%20a%20press%20release.">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Prince St. Pizza is teaming up with a leading Dave’s Hot Chicken franchisee to expand nationwide, tapping proven operator experience to drive growth.

<a href="https://www.jerseymikes.com/franchise">Jersey Mike’s</a> is preparing for a potential initial public offering after confidentially filing an S-1 with the U.S. Securities and Exchange Commission,&nbsp;<a href="https://www.prnewswire.com/news-releases/jersey-mikes-announces-confidential-submission-of-draft-registration-statement-for-proposed-initial-public-offering-302746694.html">according to a recent press release</a>.&nbsp;The brand’s rapid expansion is a key driver behind this decision. Jersey Mike’s has grown from 2,387 locations at the start of 2023 to more than 3,200 stores in early 2026, positioning itself as a serious challenger to&nbsp;<a href="https://1851franchise.com/what-subway-reviews-reveal-about-the-brands-franchise-experience-2729934">Subway</a> in the sub sandwich category. This growth has been further accelerated by&nbsp;<a href="https://1851franchise.com/blackstone-acquires-majority-stake-in-jersey-mikes-signaling-ambitious-growth-plans-2727945">Blackstone's acquisition of a majority stake in 2024</a>.A major differentiator for&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-jersey-mikes-franchise-costs-fees-profit-and-data-2720908">Jersey Mike’s is its strong unit-level performance</a>. The brand reports an average unit volume of about $1.4 million for mature stores, significantly higher than&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-subway-franchise-costs-fees-profit-and-data-2722471">Subway’s estimated $500,000 AUV</a>.&nbsp;While IPO activity was relatively quiet in 2025, the successful public debut of&nbsp;<a href="https://ir.br.coffee/news-releases/news-release-details/black-rock-coffee-bar-announces-closing-initial-public-offering">Black Rock Coffee Bar</a> has raised optimism that more brands could follow. At the same time, several restaurant companies, such as&nbsp;<a href="https://1851franchise.com/dennys-franchise-outlook-triartisan-acquisition-2731234">Denny’s</a>, have moved in the opposite direction, going private or exploring alternatives to avoid public-market pressures.Read the full press release&nbsp;<a href="https://www.prnewswire.com/news-releases/jersey-mikes-announces-confidential-submission-of-draft-registration-statement-for-proposed-initial-public-offering-302746694.html">here</a>.&nbsp;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.

With more than 3,200 locations and backing from Blackstone, Jersey Mike’s positions itself as a top contender for investor interest amid shifting restaurant market dynamics.

Private equity firm&nbsp;<a href="https://skylineinv.com/">Skyline Investors</a> has acquired rent-to-own franchisor&nbsp;<a href="https://buddysfranchising.com/">Buddy’s Home Furnishings</a> in a deal that signals continued investor confidence in franchise-based retail models, according to a&nbsp;<a href="https://www.retailtouchpoints.com/features/mergers-and-acquisitions/rent-to-own-franchisor-buddys-home-furnishings-purchased-by-private-equity-firm">report from Retail TouchPoints</a>. The transaction, announced Feb. 4, brings new ownership to a system of more than 220 locations across 18 states and Guam, positioning Buddy’s for its next phase of growth within the franchising sector.Financial terms of the deal were not disclosed, but the acquisition reflects a broader trend of private equity firms targeting established franchise brands with recurring revenue and strong unit-level performance. For Buddy’s, which specializes in furniture, electronics and appliances, the partnership is intended to strengthen its operational platform and expand long-term opportunities for franchisees.“This is an exciting new chapter for Buddy’s,” CEO&nbsp;<a href="https://www.linkedin.com/in/michael-bennett-cfe-a9309538/">Michael Bennett</a> said in a statement. “Skyline brings a collaborative mindset that our franchisees and customers will feel immediately. We’re not just changing ownership; we’re gaining committed partners who understand our business, value our franchise network and are ready to invest in our collective success.”Skyline structured the investment alongside&nbsp;<a href="https://www.linkedin.com/in/jeffrey-jaeger-bb48b43/">Jeffrey Jaeger</a> and&nbsp;<a href="https://www.linkedin.com/in/scott-alter-7aa99311/">Scott Alter</a>, co-founders and principals of affordable housing developer&nbsp;<a href="https://standard-communities.com/">Standard Communities</a>. Their involvement adds financial and strategic expertise aimed at supporting capital formation, balance sheet management and disciplined expansion.For franchise operators, the deal offers potential benefits in the form of increased corporate resources, enhanced systems and renewed investment in technology and infrastructure. Private equity-backed franchisors often prioritize scalability, data-driven decision-making and operational consistency, all of which can influence franchisee performance and long-term brand stability.Skyline brings prior experience in the rent-to-own space, including investments in&nbsp;<a href="https://www.gomajik.com/">Majik Rent-to-Own</a>, which may help accelerate Buddy’s development efforts and refine its franchise support model. Company leaders say the firm’s approach is centered on partnership rather than short-term returns.“Buddy’s represents exactly the type of platform opportunity we’re built to support,”&nbsp;<a href="https://www.linkedin.com/in/kevintom/">Kevin Tom</a>, founder and managing partner at Skyline Investors, said in a statement. “With Buddy’s proven brand and strong franchise network, there’s a clear runway for growth.”As private equity continues to expand its footprint in franchising, deals like this highlight the sector’s appeal to institutional investors. For Buddy’s franchisees, the acquisition marks a transition that could shape everything from marketing strategies to multi-unit development in the years ahead, reinforcing the brand’s position in the competitive rent-to-own marketplace.Read the original article&nbsp;<a href="https://www.retailtouchpoints.com/features/mergers-and-acquisitions/rent-to-own-franchisor-buddys-home-furnishings-purchased-by-private-equity-firm">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.

Buddy's Home Furnishings Acquisition - Skyline Investors - 1851 Franchise

Skyline Investors’ acquisition highlights how rent-to-own operators with dense unit networks and steady demand are drawing long-term capital and operational playbooks.

Buddy’s Home Furnishings Deal Signals More Private Equity Interest in Franchise Retail

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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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Big O Tires Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Big O Tires is a full-service auto care franchise offering tires, brake repair, alignments, oil changes and preventive maintenance under a nationally recognized brand.

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

Franchise Opportunity Deep Dive: Visiting Angels is a senior home care franchise focused on in-home support for seniors and individuals with disabilities.

visiting-angels-franchise-costs-fees-profit

BrightStar Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: BrightStar Care is a home health care franchise that provides both medical and non-medical services.

franchise-deep-dive-brightstar-cares-franchise-costs-fees-profit-and-data

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

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

How the Franchise Industry Can Get to the Other Side of the Coronavirus Crisis

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