1851

This month, 1851 is taking an in-depth look at&nbsp;<a href="https://alec.org/publication/rich-states-poor-states-16th-edition/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">ALEC-Laffer’s 16th annual “Rich States, Poor States” Economic Competitiveness Index</a> and how it can be useful to franchisors as they expand their footprints. The report ranks all 50 states based on two criteria: 1) Economic Outlook, a state’s current standing in 15 state policy variables; 2) Economic Performance, a retrospective measure based on a state’s performance over the past 10 years.For the state of Illinois, these rankings reveal a lot about where the state economy is going and where there is opportunity for their economy to grow.&nbsp;<ul><li>2023 Economic Outlook Ranking: 46</li><li>2023 Economic Performance Ranking: 44</li></ul><h3>The State</h3>Over the year leading up to February 2023, Illinois was&nbsp;<a href="https://cgfa.ilga.gov/Upload/2023Moody'sEconomicForecast.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">one of the Midwest's stronger performers</a>, with job growth outpacing that of the region. The Chicago metro division led this growth, with most major private-sector industries moving in a positive direction. The state’s unemployment rate has been relatively flat for the past few quarters, but it is still higher than the national average. Additionally, the labor force was up from a year earlier, but it remains down compared with a few years earlier.&nbsp; Overall, the job market in Illinois is improving, but there is still some room for growth. The industries with the strongest job growth in Illinois in 2022 were professional and business services, leisure and hospitality, and transportation and warehousing.The Illinois economy is expected to grow more slowly in 2023 than it did in 2022. The state's lead on the Midwest will diminish, as other states in the region see faster growth. White-collar industries, manufacturing and logistics will hold off on adding significant jobs. Payrolls are on track to return to their pre-pandemic peak in 2024 but later than in the U.S. as a whole.&nbsp;Meanwhile, about&nbsp;<a href="https://www.statista.com/statistics/206123/resident-population-in-illinois/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">12.58 million people</a> lived in Illinois in 2022. This was a decline from the previous 2021, when about 12.69 million people lived in the state.&nbsp;<h3>Making Sense of the Data</h3>What does this mean for Illinois’ economy? To start with the Economic Performance report, the index shows that within the past 10 years, Illinois has been outperformed by 43 other state economies.&nbsp;The performance index is based broadly on a state’s performance within state gross domestic product (GDP), absolute domestic migration and non-farm payroll employment. Illinois has seen an absolute domestic migration of a whopping -1,016,236, ranking it 48th in the country.&nbsp;The Economic Outlook tells another story about Illinois’ economy. The ranking is based on a state’s current standing in 15 state policy variables. Each of these factors, ranging from sales tax burden to state minimum wage, is influenced directly by state lawmakers through the legislative process. In this ranking, Illinois appears at No. 46, with a top marginal personal income tax rate of 4.95% and a top marginal corporate income tax rate of 9.5%.The report indicates that, generally speaking, states that spend and tax less experience higher growth rates than states that spend and tax more. While this is an important finding for entrepreneurs looking to start their own businesses, it shouldn’t discourage them from investing in their dream franchises if they're in a market with a slower growth rate.&nbsp;<h3>Franchise Growth Plans</h3>So what should franchisors do with this information? When it comes to deciding where franchisors should develop their brand, it’s always important to look at the complete picture of what the region has to offer. Though most franchisors take a shotgun approach — meaning wherever a prospect franchisee inquires, the franchisor will typically entertain that marketplace — the strategy of looking at these overall policies can help them scale their business at a more efficient rate. With that said, findings within the report should not be the deciding measure for franchisors, but they should play a role in the decision.&nbsp;<h3><a href="https://1851franchise.com/fitforyoufranchising">Fitness Premier 24/7 Clubs</a></h3><ul><li>Current units in state: 17</li><li>Growth capacity in state: N/A</li><li>Total jobs created at max growth capacity: N/A</li><li>Total unit count: 18</li><li>Investment range: $295,000- $500,000</li></ul><a href="https://fitforyoufranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">Fitness Premier 24/7 Clubs</a>, the 18-unit fitness club concept, has identified its home state as a target market for growth in 2023. With multiple successful franchisees already established in the state, brand awareness is strong.&nbsp;<a href="https://1851franchise.com/fitforyoufranchising">Fitness Premier</a> is excited to add locations that will serve even more communities.“We saw incredible growth in 2022, and we’re excited to carry those changes into this year,” said&nbsp;<a href="https://www.linkedin.com/in/jason-markowicz-cfc-9a87592a?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">Jason Markowicz</a>, CEO of&nbsp;<a href="https://fitforyoufranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">Fit For You Franchising</a>. “With investments in tools to support franchisees and plans to expand member offerings, we continue to differentiate ourselves as a franchisor. Now, as we look toward 2023 growth, we’re honing in on our home state of Illinois.”<h3><a href="https://1851franchise.com/atomicwings">Atomic Wings</a></h3><ul><li>Current units in state: 1</li><li>Growth capacity in state: 25+</li><li>Total jobs created at max growth capacity: N/A</li><li>Total unit count: 23</li><li>Investment range: $155,900 to $338,500</li></ul>Kavita Venkatesh signed with&nbsp;<a href="https://www.atomicwings.com/franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">Atomic Wings</a>, an emerging New York-style Buffalo chicken wing franchise, to open 25-plus units in Illinois. She is confident that the Illinois community will embrace the concept.“Illinois is very diverse, which works well for Atomic Wings, as opposed to other concepts, because everyone loves wings,” said Venkatesh. “The brand has proven itself in other diverse locations, so I have no reservations about bringing it here. I know it will do well.”<h3><a href="https://1851franchise.com/awrestaurants">A&amp;W Restaurants</a></h3><ul><li>Current units in state: 9</li><li>Growth capacity in the state: N/A</li><li>Total jobs created at max growth capacity: N/A</li><li>Total unit count: 1,000+</li><li>Investment range: $871,000 to $1,469,554 for a freestanding restaurant; $401,000 to $1,051,088 for an inline restaurant; and $276,000 to $704,000 for a captive restaurant.</li></ul><a href="https://awfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">A&amp;W Restaurants</a>, the iconic American restaurant franchise, said it was targeting Illinois for expansion in 2022.&nbsp;<a href="https://www.linkedin.com/in/john-palumbo-3373008/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">John Palumbo</a>, the brand’s senior director of franchise development, said that A&amp;W has been eyeing growth in the market for a while.&nbsp;“The truth is, with a brand so popular across the country, we could easily set up shop just about anywhere and find a rock-solid customer base, but we're looking for more than that,” he said. “We’ve seen incredibly high demand in Illinois. That will ensure our franchisees launch their business in a booming market.”<h3>Franchise Brands Headquartered in Illinois:</h3><ul><li><a href="https://www.thetaphousegrill.com/own-a-franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">Tap House Grill</a></li><li><a href="https://www.gosarpinos.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">Sarpino's Pizzeria</a></li><li><a href="https://www.alsbeef.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">Al's Beef</a></li><li><a href="https://www.potbelly.com/franchising-why-potbelly?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">Potbelly</a></li><li><a href="https://nancyspizza.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-illinois-economic-outlook-means-for-franchisors-2723012" target="_blank" rel="nofollow">Nancy's Pizza</a></li></ul>

What Illinois’ Economic Outlook Means for Franchisors

Illinois Economic Outlook for Franchisors | 1851 Franchise

1851 Franchise

If you’re a franchisor looking to develop your business in Illinois, you’ll want to consider the state’s policy variables and growth rates when scaling your plans.

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Beef 'O' Brady's

Design with photo of Mangesh Patel, Beef ‘O’ Brady’s

Veteran Hospitality Leader Mangesh Patel Sets Sights on Central Georgia With Major Multi-Unit Deal

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Griswold

Griswold Caregiver in Hawaii Awarded National Scholarship While Pursuing Social Work Degree

Aloha State Daily: Griswold Caregiver in Hawaii Awarded National Scholarship While Pursuing Social Work Degree

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FSC Franchise Co.

With Three Brands, FSC Realizes Food Cost Savings Through Scale

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The Melt

The Melt Delivered Record-High Financial Performance in 2025, Fueling System Growth and Expansion

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Screenmobile

image of screenmobile franchise investment opportunity

Screenmobile Finishes 2025 by Entering 13 New Territories and Earning Entrepreneur’s Franchise 500 Recognition for the 27th Consecutive Year

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

KKR to Acquire Nothing Bundt Cakes in $2 Billion Deal

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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 Penny Shortage Is Creating a New Risk for QSR Franchise Systems - 1851 Franchise

The Penny Shortage Is Creating a New Risk for QSR Franchise Systems

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According to a&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">recent release</a>,&nbsp;<a href="https://rf-partners.com/">RF Investment Partners</a>, a group focused on flexible capital solutions and value-add support to lower-middle-market businesses, has teamed up with&nbsp;<a href="https://www.burlingtoncp.us/">Burlington Capital Partners</a>, a group focused on family, founder and operator-owned lower-middle-market businesses, to acquire a prominent multi-territory&nbsp;<a href="https://franchise.neighborly.com/precision-door">Precision Garage Door Service</a> franchise.The investment marks the seventh platform for RF within the service space. Precision Garage Door Service, which is part of the larger&nbsp;<a href="https://www.neighborly.com/">Neighborly</a> ecosystem, specializes in the installation, maintenance and repair of garage doors.&nbsp;“We are proud to partner with management and the Burlington team to support continued growth by investing in people and operational excellence,”&nbsp;<a href="https://www.linkedin.com/in/peter-fidler-6787143">Peter Fidler</a>, managing partner and co-founder of RF Investment Partners, said in the release. “The sector continues to present compelling opportunities given the essential nature of garage door repair, and we look forward to building on Precision’s strong foundation to drive long-term value.”This deal is part of the broader trend toward institutionalized multi-unit and multi-territory operators. Previously, franchising was largely viewed as the place for “mom-and-pop” businesses. And while franchises remain small, local businesses, the aggressive entry of private equity firms focused on operators (franchisees) rather than the brand (franchisor) is bringing new energy to small business ownership.Read the full release&nbsp;<a href="https://www.businesswire.com/news/home/20260312305776/en/RF-Expands-Residential-and-Commercial-Services-Portfolio-with-Investment-in-Precision-Garage-Door-Service-Franchisee">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="http://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Design with Precision Garage Door Service team members

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

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

rf-burlington-precision-garage-door-acquisition

Quick-service and fast-casual restaurant operators are facing new legal and operational pressure as the penny disappears from circulation, especially in franchise systems that still handle a large share of cash transactions. In a&nbsp;<a href="https://www.qsrmagazine.com/story/the-penny-shortage-and-franchise-systems-what-qsr-operators-need-to-do-now/">recent QSR Magazine article</a>,&nbsp;<a href="https://plavekoch.com/">Plave Koch PLC</a> attorney&nbsp;<a href="https://www.linkedin.com/in/amanda-bannourah-91ba4617b/">Amanda Bannourah</a> explained why restaurants should act now to create clear policies rather than wait for federal guidance that has yet to fully materialize.The challenge is significant because cash remains an important form of payment in restaurant transactions. More than one in four restaurant purchases are paid in cash, which means<a href="https://1851franchise.com/the-top-quick-service-restaurant-franchises-2728532#stories"> quick-service restaurants</a>, fast-casual brands,&nbsp;<a href="https://1851franchise.com/the-10-best-coffee-shop-franchise-opportunities-for-2024-2724760#stories">coffee shops</a> and convenience-focused operators are more exposed than many other businesses. Without pennies in circulation, those operators must decide how to handle totals that no longer land on exact one-cent increments.Many restaurants have started rounding cash totals to the nearest nickel. Still, that fix can create problems of its own. In places where businesses cannot charge cash customers more than card users, rounding up may raise compliance concerns. That can open the door to consumer protection complaints, deceptive practice claims and allegations that customers are being treated differently based on how they pay.Rounding down reduces some of that customer-facing risk, but it comes with a cost. If a business consistently rounds down, it can lose up to 4 cents per transaction. For high-volume restaurant systems, these costs can add up quickly and put additional strain on margins.For franchise systems, the issue is even more complicated because consistency matters across every location. If one franchisee handles rounding differently from another, the brand can end up with customer confusion, uneven execution and greater legal exposure. The challenge is heightened by the fact that state laws vary, particularly around anti-surcharging rules, unfair trade practices and other consumer protections. A policy that works in one market may not work in another.That is why franchisors need to take a more structured approach now. Systemwide policies should be clearly defined, tailored where necessary to state-level requirements and communicated consistently to franchisees. Staff also need training on applying the policy correctly, and customers should be informed at the point of sale through clear disclosures.The takeaway for QSR operators is straightforward. This is not just a small cash-handling adjustment. It is a compliance, training and brand-consistency issue that needs attention now. For franchise systems in particular, waiting too long could lead to avoidable operational problems and legal risks across multiple markets.Read the original article&nbsp;<a href="https://www.qsrmagazine.com/story/the-penny-shortage-and-franchise-systems-what-qsr-operators-need-to-do-now/">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.

As cash transitions continue and guidance lags, franchisors need clear policies to avoid compliance issues, customer confusion and operational inconsistency.

<a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/">Yum! Brands</a> is considering a potential sale of Pizza Hut and plans to close 250 underperforming U.S. locations, according to a&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">recent article on Simply Wall St</a>. For the franchising industry, the significance is less about the stock and more about what it says about how large franchisors are managing brand portfolios in a high-cost operating environment.<a href="https://1851franchise.com/pizza-hut-franchise-deep-dive-2722519">Pizza Hut</a> is one of the most recognizable names in franchising. If Yum! decides to sell it, that would be a notable shift for a company built on a multi-brand platform. For years, large brand groups have argued that operating multiple concepts creates advantages, including shared resources, stronger purchasing power and the ability to invest in technology across the system. A sale would suggest Yum! believes those benefits no longer outweigh the effort required to improve Pizza Hut’s performance.The planned closures may have the most immediate impact on franchisees. When a franchisor reduces its footprint, it can change how the brand performs in local markets. Fewer locations can mean less convenience for customers, which can hurt overall traffic. It can also weaken the effect of local advertising when there are fewer restaurants supporting promotions in the same trade area.Closures can also affect store-level economics in ways that go beyond the locations that shut down. In some markets, remaining franchisees may pick up some displaced demand. In others, customers may switch to competitors. The changes can also affect local co-op advertising budgets and, depending on how purchasing and distribution are structured, can influence costs tied to volume.The move comes as competition in pizza remains intense, with&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dominos-pizza-franchise-costs-fees-profit-and-data-2725506">Domino’s</a> and&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-papa-johns-franchise-costs-fees-profit-and-data-2724607">Papa Johns</a> continuing to push delivery, digital ordering and value-focused offers. Simply Wall St notes Yum! has been rolling out its Byte digital platform across brands. If Yum! changes Pizza Hut’s role in the portfolio, it could also change where the company focuses its technology and marketing investment.For franchise systems watching from the outside, Yum!’s review is a reminder that growth is not always the main priority. Sometimes the bigger decision is whether a legacy brand can be improved inside a platform or whether it will perform better under a different owner and a different plan.Read the original article&nbsp;<a href="https://simplywall.st/stocks/us/consumer-services/nyse-yum/yum-brands/news/yum-brands-weighs-pizza-hut-sale-as-portfolio-reset-accelera">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit&nbsp;<a href="https://www.1851growthclub.com">www.1851growthclub.com</a> and start your journey.

Yum! Brands Pizza Hut Sale - 1851 Franchise

Yum! is reviewing the brand and closing 250 U.S. locations, a move that could affect franchisees and reshape its restaurant portfolio.

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

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North County Pizza Inc., a major&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-dominos-pizza-franchise-costs-fees-profit-and-data-2725506">Domino’s</a> franchisee, has filed for Chapter 11 bankruptcy protection,&nbsp;<a href="https://finance.yahoo.com/news/major-pizza-chain-franchisee-files-173300667.html">Yahoo! Finance recently reported</a>. The bankruptcy filing gives North County Pizza time to restructure its debt and reorganize its business, while pausing any legal actions against the company during the process.The Oceanside, California-based franchisee did not explain why it filed for bankruptcy or whether it plans to close locations or lay off employees. Franchisees across the restaurant industry have pointed to tough competition, higher labor and food costs, and expensive leases as reasons for restructuring or filing for bankruptcy.The franchisee filed for bankruptcy on March 11 in the U.S. Bankruptcy Court for the Southern District of California, reporting $100,000 to $1 million in assets and $1 million to $10 million in liabilities.The announcement follows recent news that&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-papa-johns-franchise-costs-fees-profit-and-data-2724607">Papa Johns</a> plans to close 300 underperforming restaurants, including 200 by the end of 2026, and cut 7% of its workforce. It also comes just weeks after&nbsp;<a href="https://www.yum.com/wps/portal/yumbrands/Yumbrands/">Yum! Brands</a> announced it was&nbsp;<a href="https://1851franchise.com/yum-brands-pizza-hut-sale-2731599#franchise-news">considering a sale of Pizza Hut</a> and plans to close 250 underperforming U.S. locations.Together, these moves could point to a broader reset across the pizza franchise sector. For franchisees, this environment raises the stakes around site selection, cost control and operational efficiency, while also creating potential opportunities to capture market share as weaker locations exit the market.Read the original article <a href="https://finance.yahoo.com/news/major-pizza-chain-franchisee-files-173300667.html">here</a>.Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit<a href="http://www.1851growthclub.com">&nbsp;www.1851growthclub.com</a> and start your journey.

Large Domino’s Franchisee Files for Chapter 11 Bankruptcy

The California-based franchisee seeks to restructure debt as closures and strategic shifts continue across major pizza brands like Pizza Hut and Papa Johns.

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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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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

newks-eatery-franchise-costs-fees-profit

Sparkle Dog Care Franchise Costs, Fees, Profit and Data for 2025

Franchise Opportunity Deep Dive: Sparkle Dog Care is a membership-based pet grooming franchise that blends wellness-focused hygiene services with small-box retail and community engagement.

sparkle-dog-care-franchise-costs-fees-profit-and-data

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.

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Franchising has long proven an attractive prospect for independent-minded entrepreneurs seeking ownership. Delivering a proven system – one properly-marketed and tweaked over time – has long been one of the single most powerful franchising hallmarks. But diving into the deep end before learning to swim is risky.&nbsp;Choosing the right option takes preparation and work. So, what is the best franchise to buy for beginners?“There's so much to consider,” says franchise attorney&nbsp;<a href="https://www.linkedin.com/in/mario-l-herman-b9258112a/">Mario Herman</a>. “A big part of my practice is reviewing FDDs and franchise agreements for prospective franchisees. I look for 50 separate things, including inconsistencies between disclosure documents and franchise agreements. And there's a lot of work involved. So, I’d say hire competent counsel with franchise experience.”<h2>Due Diligence</h2>For over three decades as a&nbsp;<a href="https://www.franchise-law.com/mario-l-herman-esq.shtml#">franchise attorney</a>, Mario Herman has represented clients from more than 150 franchise systems, further testifying as an expert witness, and stresses the importance of the due diligence process when pondering the question of what’s the best franchise to buy into for beginners.Before diving in, there’s a number of questions to ponder. What kind of capital, or access to it, do you realistically have? Perhaps a low initial investment is crucial. How involved do you want to be in the daily operation of the franchise – hands-on or semi-absentee? Do you want to build an office or retail setting? Maybe a remote opportunity is best.&nbsp;Performing strong due diligence can go a long way toward ensuring prospective franchisees select the right opportunity.&nbsp;“Yeah, I mean, that's franchising for beginners. There have been books, podcasts and all kinds of stuff written about that,” Herman said. “From issues involving future royalties to the liquidity and capitalization of the franchise – how long they've been in business and how many franchises in the past have terminated or gone out of business. When doing due diligence, contact those who are still in the system and those who are no longer part of it. There are multiple parties, and due diligence with all of them is important. The process typically takes three to six months or more for bigger deals.”<h2>Where To Look</h2>So what is the best franchise to buy for beginners? It’s a big question. Luckily, there’s answers.<h3>Health &amp; Wellness</h3>If it’s the idea of aligned values that makes franchising an attractive opportunity, there are opportunities in the health and wellness sector that play out in a number of settings, ranging from traditional brick and mortar to remote or mobile opportunities, allowing the potential franchisee to deliver a valuable service at the local level. Recovery studios offer the idea of escape in a private, stress-free setting while fitness franchises continue to grow following the pandemic.<a href="https://1851franchise.com/top-10-gym-and-fitness-franchises-the-best-investment-opportunities-for-2025-2729614#stories">Pure Fitness</a> offers a high-value, low-price model in a 24/7 setting which helps build a diverse clientele while delivering health benefits within the community.<h3>Home &amp; Maintenance Services</h3>Touting a recession-resistant nature, home and maintenance services continue to flourish due to aging infrastructure and technological advancements that can protect valuable home investments.With a lower overhead and a more flexible, scalable business model, home and maintenance service franchises offer potential franchise owners a greater work-life balance, boasting home-based options. And unlike other industries,&nbsp;<a href="https://1851franchise.com/the-top-10-home-service-franchises-to-consider-2727601#stories">home services</a> draw consistent demand, allowing for stability while reducing startup costs.&nbsp;The unique combination of stability, lower investment risk and the ability to scale fast can offer a more accessible path to franchise ownership. Access Garage Doors maintains a specialized model, focusing on the installation and repair of garage doors with a low initial investment of about $50,000.<h3>Sustainable, Eco-Friendly</h3>Aligned values have driven many a beginner toward the idea of sustainable, eco-friendly franchise options.In the cleaning sphere, residential and commercial cleaning/janitorial services offer largely remote-based opportunities with lower overhead that provide a valuable, largely recurring revenue stream that’s safe and dependable.Solar energy franchises often require an initial investment starting under six figures, a drastic departure from the nationally-marketed brands that tend to define the idea of franchising for the beginner. Focused on the installation of solar panels for homes and businesses, this rapidly growing realm helps reduce reliance on fossil fuels, encouraging sustainability.<a href="https://1851franchise.com/ecomaids">Ecomaids</a> features professional, non-toxic and eco-friendly home and commercial cleaning services in a primarily mobile setting which lowers overall costs.<h3>Tech-Driven Food &amp; Retail</h3>The quick onset of tech like AI, robotics and automation has begun to upend the restaurant industry experience, increasing efficiency while delivering crucial data to the astute franchise owner – as well as franchisees looking to assess the best franchises to buy in 2026.Some restaurants have experimented with concepts like AI drive-thrus while other franchised chains, especially in the pizza sector, have toyed with the concept of fully automated kitchens, lowering overhead while addressing the tricky idea of staff retention.Domino’s Pizza has utilized robotics to drive consistent production of pizza while enlisting automation as a significant part of the delivery process. Elsewhere, Donato’s has experimented with fully automated kitchens.&nbsp;POS systems simplify while delivering data and in the retail setting while AI can assist with real time inventory and supply chain management, improving logistics while reining in costs.<a href="https://1851franchise.com/batteries-plus-bulbs-community-driven-approach-and-proprietary-products-continue-to-bring-in-returning-customers-2712298">Batteries Plus</a> uses tech to manage an extensive product selection while many chains use it to encourage ideas like ordering online or curbside delivery.<h2>The Takeaway</h2>So, what is the best franchise to buy for beginners? The answer to that question requires a proactive look within, honestly assessing ideas like available funds, desired work-life balance, and preferred location.&nbsp;Proper due diligence can help the prospective franchisee accurately assess opportunities in franchising realms ranging anywhere from health and wellness to eco-friendly cleaning or even the restaurant industry.But as the old adage goes, buyer beware. Teaming with qualified counsel to take a deep dive into any opportunity can go a long way toward properly assessing the best franchises to buy in 2026.“There’s an old saying in franchising: ‘If you can fog a mirror, you can buy a franchise,’” Herman said. “Many people think buying a franchise is like a cookie-cutter system where everything will be done for them – including marketing, basic P&amp;L skills and operations. But you have to maintain costs, labor and compliance with rules and regulations. You really have to be careful.”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.

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