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It&rsquo;s a tough question that many business owners face head-on: is my business ready to franchise? Although it isn&rsquo;t an automatic ticket to success, CEOs we talked to say coupled with the drive and selection of the right franchisees, it&rsquo;s a move that leads to rapid growth.

Take Josh York for example. He is Founder &amp; CEO of <a href="http://www.gymguyzfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-i-franchised-my-business-2705258" target="_blank" rel="nofollow" target="_blank">GYMGUYZ, a home personal training company that provides convenient, customized, and creative workouts</a>. York began franchising his business in 2014 and hasn&rsquo;t looked back. In just two years, GYMGUYZ now has over 140 locations across the country and has become the fastest growing fitness concept in the United States.

&ldquo;For me, franchising was a no-brainer,&rdquo; said GYMGUYZ Founder and CEO Josh York. &ldquo;I love the franchising business model in general and specifically felt it was the right model for our concept.&rdquo;

So what are the benefits? Just ask Buzz Franchise Brands CEO and President Kevin Wilson. Wilson also serves as CEO and President of <a href="https://mosquitojoefranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-i-franchised-my-business-2705258" target="_blank" rel="nofollow" target="_blank">Mosquito Joe, a mosquito control treatment franchise that provides services to both residential and commercial customers nationwide</a>. Wilson says the biggest benefits of franchising are lower costs, faster expansion and building a core team that has your brand&rsquo;s best interest at heart.

&ldquo;First, meeting lots of new people who have great ideas and helping them achieve their dreams of being a successful business owner. Second, we are able to grow a lot faster than if we attempted to do this with company-owned territories,&rdquo; Wilson said.

York agrees the biggest benefit to franchising is building your team. Franchisees are normally well established as part of the local community which can give them an advantage in gaining new business at a local level and penetration of the market.

&ldquo;Franchising GYMGUYZ helped me meet some great people, people that were perfect for my business. One of the greatest keys to success is having people on your team who can make you better, give you advice and feedback. It adds great value to your brand,&rdquo; York said.

While franchising has brought both York and Wilson success, it takes much preparation and drive. CEOs we talked to say if you&rsquo;re going to take the plunge, check all of these steps off of your checklist: consider your concept, check your financials, gather market research and prepare for change. Wilson suggests doing extensive research on your target markets before you make your key hires.

&ldquo;It all begins and ends with the economics of a single territory. This means that the size of the investment required to commensurate with the earnings potential of the business, including how quickly the business can break even and then get to steady state producing attractive income for the owner. If one can consistently demonstrate this over and over, recruiting good franchisees will not be a problem,&rdquo; Wilson said.

York says franchising was the best decision he has made for his business, but it&rsquo;s a move that comes with much research, hard work and dedication.

&ldquo;Your business model and infrastructure have to be on point and unbreakable. It&rsquo;s important to make sure your system is in place, tested and tried. If you&rsquo;re confident in all of those categories, take the risk. It&rsquo;s worth it,&rdquo; York said.

Why I Franchised My Business

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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.

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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.


Why I Franchised My Business

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