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The U.S. Federal Trade Commission&nbsp;<a href="https://www.ftc.gov/news-events/news/press-releases/2024/04/ftc-announces-rule-banning-noncompetes?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-ftcs-noncompete-ban-what-it-means-for-franchisors-and-franchisees-2726014" target="_blank" rel="nofollow">just announced a new ban on noncompete agreements</a> that’s raised concern and prompted discussion across sectors — the franchising industry no exception.&nbsp;<a href="https://www.linkedin.com/in/michaelgray2/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-ftcs-noncompete-ban-what-it-means-for-franchisors-and-franchisees-2726014" target="_blank" rel="nofollow">Michael Gray</a>, a complex-and-commercial-litigation partner at national law firm&nbsp;<a href="https://www.lathropgpm.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-ftcs-noncompete-ban-what-it-means-for-franchisors-and-franchisees-2726014" target="_blank" rel="nofollow">Lathrop GPM</a>, is an expert in employment law who’s represented major names in the franchise industry such as&nbsp;<a href="https://www.servicemaster.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-ftcs-noncompete-ban-what-it-means-for-franchisors-and-franchisees-2726014" target="_blank" rel="nofollow">ServiceMaster</a>,&nbsp;<a href="https://franchise.merrymaids.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-ftcs-noncompete-ban-what-it-means-for-franchisors-and-franchisees-2726014" target="_blank" rel="nofollow">Merry Maids</a> and&nbsp;<a href="https://www.firstlightfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-ftcs-noncompete-ban-what-it-means-for-franchisors-and-franchisees-2726014" target="_blank" rel="nofollow">FirstLight* Home Care</a>.&nbsp;<a href="https://www.lathropgpm.com/Michael-Gray?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-ftcs-noncompete-ban-what-it-means-for-franchisors-and-franchisees-2726014" target="_blank" rel="nofollow">Gray</a> spoke with 1851 Franchise to shed light on the implications this new noncompete ban could have the franchising world.&nbsp;<h3>Impact on Employment Agreements</h3>The ban will likely have less of an impact on the franchisee-franchisor relationship, and more on that of the employer-employee as both of the former handle employment agreements within their organizations."The rule as they published it excludes noncompete agreements between franchisors and franchisees,” Gray said. “So, in that sense, there is no change in the franchise relationship."The new rule forbids noncompete agreements for all but senior executives. Large franchisors are likely to have senior executive employees who remain eligible for noncompete agreements with the new rule. But most franchisees, who have mostly rank-and-file employees, will now have employees considered exempt.<h3>Uncertain Future</h3>Despite being publicly announced, the ban is not yet set in stone. In fact, it isn’t set to go into effect for 120 days. Gray acknowledged the impending legal challenges to the ban and suggested that its effective implementation in 120 days is uncertain.&nbsp;“This is going to be challenged in court,” Gray said. “There's been litigation planned in anticipation of the ruling for quite a while. I don't know when the first of those cases will be filed, but it will be filed, and it'll have to work its way through the courts to get a final decision as to whether the rule change will stand. It's unlikely to actually go into effect in 120 days.”For this reason, Gray advised exercising caution in making immediate changes to employment contracts as a result of the potential ban.&nbsp;<h3>What Employers Should Do and How They Can Protect Themselves</h3>Still, Gray recommends that franchisors and franchisees alike review their current employment contracts to identify noncompete clauses and assess their applicability to senior executive roles while remaining aware that the situation may yet change.&nbsp;One of the most important immediate actions franchisors and franchisees can take as employers is identifying other ways of safeguarding their business interests beyond noncompete clauses. Non-solicitation clauses and trade secret protection are viable alternatives.“These options are probably something employers should explore, and then revise their documents and agreements accordingly, including employee handbooks, as well as employment contracts,” Gray said. “It certainly wouldn't be a bad idea to start that process relatively soon, and be ready for the potential if [the noncompete ban] does actually go into effect.”To learn more about franchising, check out these related stories and resources:<ul><li><a href="https://www.1851growthclub.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-ftcs-noncompete-ban-what-it-means-for-franchisors-and-franchisees-2726014" target="_blank" rel="nofollow">1851 Growth Club</a></li><li><a href="https://1851franchise.com/the-role-of-franchisors-in-supporting-low-cost-franchise-success-2725551#trending">The Role of Franchisors in Supporting Low-Cost Franchise Success</a></li><li><a href="https://1851franchise.com/7-effective-strategies-for-franchise-recruitment-2725486#columns">7 Effective Strategies for Franchise Recruitment</a></li><li><a href="https://1851franchise.com/essential-lease-negotiation-tips-for-franchisees-2725451#franchisee">Essential Lease Negotiation Tips for Franchisees</a></li></ul>

The FTC's Noncompete Ban: Implications for Franchises

1851 Franchise

The controversial decision affects employers across industries. Here’s how franchisors and franchisees alike can prepare for the potential changes while still protecting their brand.

The FTC's Noncompete Ban: What it Means for Franchisors and Franchisees

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The Junkluggers

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One Hour Heating and Air Conditioning

Women in Leadership Driving Success at One Hour Heating & Air Conditioning

Women in Leadership and Strong Team Culture Are Driving Success at One Hour Heating & Air Conditioning

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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

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

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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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Understanding&nbsp;<a href="https://1851franchise.com/how-much-money-do-i-need-to-buy-a-franchise-a-guide-2730910">the total investment</a> required for a franchise is one of the first questions prospective franchise owners ask. While the answer can vary widely depending on brand, industry and market, knowing what goes into it can help entrepreneurs evaluate opportunities realistically (and avoid costly surprises).So, what&nbsp;is the total investment required for a franchise? The total investment reflects everything needed to open and operate the business and adequately navigate its early stages, from buildout to working capital.<h2>Why The Total Investment Matters</h2>Transparency is important. Investment details should be front and center early in the discovery process. It should also be a significant element of the franchise development website for any business opportunity.“The most visited page is the initial investment/start-up cost,” said&nbsp;<a href="https://thejointfranchise.com/">The Joint Chiropractic</a> Senior Vice President, Development&nbsp;<a href="https://www.linkedin.com/in/cmsherwood/">Craig Sherwood</a>. “This is not a surprise. This question is almost always the first a candidate will ask during the initial phone call. It’s critical for a brand to be transparent with not just the initial investment information but the royalties and fees associated with becoming a franchisee.”Developing an accurate understanding of the full financial picture required allows potential zees to assess affordability, tolerance for risk and long-term expectations (before moving ahead or signing a franchise agreement).<h2>What Goes Into The Total Investment?</h2>While every franchise system is different, the total investment required typically includes several core components. “The investment range includes three months of operating costs, the franchise fee and related expenses,” said&nbsp;<a href="https://www.simplycabinetryfranchising.com/">Simply Cabinetry</a> owner and CEO&nbsp;<a href="https://www.linkedin.com/in/dianasimmons-simplycabinetry/">Diana Simmons</a>. So, what is the total investment required for a franchise?&nbsp;Here are five components:<ul><li>Franchise Fee – The upfront fee paid to join the franchisor system and access the brand, training and support available. &nbsp;</li><li>Buildout and Equipment – Costs tied to general construction, leasehold improvements, signage, fixtures and equipment. &nbsp;</li><li>Inventory and Opening Supplies – The initial product, materials or inventory required to open. &nbsp;</li><li>Working Capital – The funds needed to cover payroll, marketing and operating expenses during the first few months of operation. &nbsp;</li><li>Ongoing Fees – Royalties, marketing contributions, technology expenditures and other recurring fees outlined in the franchise disclosure document (FDD).</li></ul><h2>Making An Informed Investment Decision</h2>So, what is the total investment required for a franchise?&nbsp;<a href="https://1851franchise.com/how-much-capital-is-needed-to-buy-a-franchise-2716989">The amount required</a> to launch a franchise opportunity can range from tens of thousands to several hundred thousand dollars, or more, depending on the industry, concept and recognition of the brand. That’s why a thorough review of FDD Item 7 (estimated initial investment) and consultation of experienced franchise counsel is crucial.A clear understanding of the total investment required to start a franchise can help candidates navigate the process more effectively. By asking questions early and thoroughly evaluating costs, franchisees can determine whether a brand aligns with their financial goals, laying the foundation for long-term success.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.

What is the total investment required for a franchise?

What is the total investment required for a franchise? In this guide with expert tips, learn the costs of starting a franchise, including the fees, buildout, capital and ongoing expenses required.

What is the Total Investment Required for a Franchise? A Guide For Prospective Franchisees

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What industries are trending in franchising? As consumer behavior continually shifts and technology continues to drive the further evolution of operations, some franchising sectors are gaining momentum, offering opportunities for franchise owners at any experience level.A proper assessment of trending franchise industries can help zees ensure alignment of the investment against lifestyle goals, scalability of a given model and general demand over the long-term.<h2>Why Certain Franchise Industries Are Gaining Traction</h2>Franchise trends are often driven by lifestyle changes, demographic shifts and evolving expectations in terms of desired flexibility and convenience. Lifestyle-driven franchising is playing a growing role and industries that combine the notion of service-based models (with flexibility and less overhead) are also increasingly attractive.“Recently, during our 2025 national conference, our co-CEO mentioned that this has been a booming time for leisure travel,” said&nbsp;<a href="https://worldtravelholdings.com/">World Travel Holdings</a> Public Relations and Corporate Communications Manager,&nbsp;<a href="https://www.linkedin.com/in/michael-cadigan-3a156b86/">Michael Cadigan</a>. “Not just for people booking trips but for those entering the industry because of the lifestyle it offers.”<h2>Trending Industries</h2>So, what industries are trending in franchising?&nbsp;Here are five that stand out:1.&nbsp;<a href="https://1851franchise.com/what-are-the-best-travel-agency-franchises-2721343">Travel And Leisure</a> Franchises tied to leisure travel are benefiting from renewed demand and remote-friendly operations.&nbsp;“As long as you have a stable internet connection, you can stay plugged in with clients and customers,” Cadigan said. “Being able to work from anywhere allows people to enjoy the lifestyle they’re looking for.”2.&nbsp;<a href="https://1851franchise.com/low-cost-home-service-franchises-2729482">Home And Property Services</a> Maintenance, repair and specialty home services remain popular due to aging housing stock and infrastructure, which can deliver something close to recession-resistant demand. These franchises often feature lower startup costs and scalable operations.3.&nbsp;<a href="https://1851franchise.com/best-health-and-wellness-franchises-2026-2730886">Health, Wellness And Recovery</a> From fitness studios to recovery and wellness concepts, franchises focused on physical and mental health are continuing to grow as American consumers prioritize long-term general health.4.&nbsp;<a href="https://1851franchise.com/exploring-eco-friendly-franchises-for-world-environment-day-2725492">Eco-Friendly And Sustainable Services</a> Franchises focused on cleaning, energy efficiency and sustainability-focused services appeal to entrepreneurs prioritizing values (they also tend to tout recurring revenue and tighter operating models).5.&nbsp;<a href="https://1851franchise.com/ai-impact-restaurants-franchises-human-centric-technology-2730903">Technology-Enabled Retail And Services</a> Brands utilizing tech like automation (or data and digital platforms) are improving overall efficiency while minimizing labor challenges (rendering tech-forward franchises en vogue).<h2>Key Takeaways</h2><ul><li>Follow lifestyle-driven demand (as opposed to hype) &nbsp;</li><li>Assess scalability and overhead (before investing) &nbsp;</li><li>Seek out industries with recurring or essential services &nbsp;</li><li>Assess whether the business model supports flexibility &nbsp;</li><li>Align industry trends with your long-term goals</li></ul><h2>The Bottom Line</h2>So, what industries are trending in franchising? Travel services, home services, wellness, sustainability and tech-enabled concepts are all experiencing continual momentum at the moment. By developing a thorough understanding of where demand is growing and why, prospective franchise owners can make better decisions and invest with confidence in industries well-positioned for strong long-term success.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.

What industries are trending in franchising?

What industries are trending in franchising? From travel and wellness to home services and eco-friendly concepts, these industries are trending as demand grows for flexible, scalable business models.

What Industries Are Trending in Franchising? A Guide For Prospective Franchisees

what-industries-are-trending-in-franchising-a-guide

Franchisors often face one very serious question: how do I protect my brand? Maintaining quality and core values consistently, regardless of location, can help deliver a strong customer experience, an essential ingredient when it comes to the idea of long-term success. Expert guidance from seasoned franchisors can help safeguard the brand while scaling the business.<h2>Expert Insight: Building Consistency Across Locations</h2>So, how do I protect my brand as a franchisor? According to&nbsp;<a href="https://biscuitbellyfranchise.com/">Biscuit Belly</a> CEO&nbsp;<a href="https://www.linkedin.com/in/chad-c-4663465b/">Chad Coulter</a>, detailed systems can play a significant role in establishing brand consistency. Careful selection of potential franchise owners can also help.“Franchisees can make or break you pretty quickly… If something does not smell right, does not sound right, does not feel good, then we are probably going to respectfully decline that person in our system. Because these are long-term relationships,” said Coulter. “For every item, we have a very detailed procurement schedule… prep instructions, cooking instructions and pictures of the final product. We also provide build cards called Biscuit Buddies: quick, visual guides for staff to follow. Then we send emails, videos and reminders before any new menu launch.”<h2>Practical Steps to Protect Your Brand</h2><ol><li>Create Detailed Operations Guidelines – Developing clear manuals, visual aids and step-by-step instructions for every facet of the franchised business can help deliver consistency and clear expectations, ultimately&nbsp;<a href="https://1851franchise.com/franchise-brand-protection-long-term-success-2730580">protecting the brand</a>. &nbsp;</li><li>Implement Strong Training Programs – Ensuring new franchise owners (and their staff) understand the systems and model can help avoid costly mistakes. Regular refresher courses help maintain quality and&nbsp;<a href="https://1851franchise.com/how-to-maintain-consistency-across-multiple-franchise-locations-2717735">consistency</a>, too. &nbsp;</li><li>Select Franchisees Carefully – Prioritize partners who are well aligned with your mission and values. Early franchising relationship set a tone. &nbsp;</li><li>Monitor Compliance Regularly – Conduct audits, deploy mystery shopper visits and check in regularly to confirm standards are followed on a consistent basis. &nbsp;</li><li>Constant Communication – Keeping franchise owners informed about business updates, product launches and other operational changes with clear and timely communication can help drive long-term success.</li></ol><h2>The Takeaway</h2>As a franchisor, proper&nbsp;<a href="https://1851franchise.com/the-role-of-franchise-legal-partners-in-protecting-your-brand-2728724">protection of the brand</a> requires a combination of systems, training, careful selection of potential franchise owners and strong, ongoing communication.&nbsp;So, how do I protect my brand as a franchisor? By implementing solid operational procedures and finding alignment with franchisees who share its values, a franchise business can be scaled with confidence while maintaining consistency and protecting the brand.“Make sure whatever your mission is, whatever your core values are, that you are using those to select good franchisees,” Coulter said. “Following this approach helps franchisors grow responsibly while keeping their brand strong and consistent.”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 do I protect my brand as a franchisor?

How do I protect my brand as a franchisor? In this guide with expert tips, learn how communication, strong systems, consistent training and careful franchisee selection can protect and scale a brand.

How Do I Protect My Brand as a Franchisor? A Guide For Prospective Franchisees

how-do-i-protect-my-brand-as-a-franchisor-a-guide

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

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


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The FTC's Noncompete Ban: What it Means for Franchisors and Franchisees

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