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&ldquo;In the franchise marketing space, there&rsquo;s a lot of data to be had&mdash;and with that, a lot of ways to waste money,&rdquo; Zack Pike said matter-of-factly. As Vice President of Data Strategy and Marketing Analytics for Lawrence, Kansas-based <a href="https://callahan.agency/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-using-data-to-drive-your-franchise-development-and-marketing-budgets-will-make-or-break-your-brand-2711086" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">Callahan Agency</a>, Pike&rsquo;s role is centered on making sure brands take advantage of the data at their disposal to uncover insights that reveal opportunities and inform strategy, and ultimately, making sure that money-wasting part doesn&rsquo;t happen.&nbsp;

The conundrum franchisors have long faced is not only where to find the data that allows them to accurately assess the success of their system, but how to use all available data to determine how to allocate their budget most effectively. Though data-driven decision-making currently holds undeniable importance in the franchising industry today, it didn&rsquo;t always&mdash;and no one knows this better than <a href="https://www.frandata.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=why-using-data-to-drive-your-franchise-development-and-marketing-budgets-will-make-or-break-your-brand-2711086" target="_blank" rel="nofollow" style="text-decoration-line:none" target="_blank">FRANdata</a> CEO Darrell Johnson.&nbsp;

Johnson has been at the helm of the franchise market research and data analysis firm for 15 years, collecting data to derive key insights about the franchising industry at large from the inner workings of more than 5,000 franchise brands and 8,800 lenders. As he continues to watch the industry evolve to embrace data, Johnson said he&rsquo;s noticed three fundamental factors influence this evolution.

&ldquo;First, regardless of sector, every franchisor has the same 11 responsibilities, from recruitment on the front end to compliance on the back end. In between are internal functions, like support, and external functions, such as marketing,&rdquo; Johnson said. &ldquo;Second, every franchisor&rsquo;s management team&mdash;and its owners&mdash;want to understand how they are performing relative to the competition. Third, advances in data collection and technology over the last few decades have allowed us to perform this analysis more efficiently, resulting in a collectively stronger ability to define what good, better and best looks like across functions and systems.&rdquo;

Regardless of size or capital, all brands experience budget constraints in some form or another. And with these three fundamental factors in mind, it stands to reason that exploring all available ways to spend smarter is one everyone&rsquo;s agenda&mdash;yet many franchise brands fail to put the data at their disposal to proper use. One clear area where franchisors are dropping the ball? Unit-level data collection, according to Pike.

&ldquo;Where we see the biggest benefit in data collection is at the individual location-level because not every unit responds to marketing the same,&rdquo; Pike said. &ldquo;They all react a little differently, whether due to weather, management, or anything, really. Whenever possible, we encourage clients to use data at the individual store level and work from that perspective up. It&rsquo;s different than the way most businesses do things, but it tends to be the better approach.&rdquo;

Implementing data collection initiatives at the unit-level, Pike argued, allows brands to actually understand the nuances of every store and why they perform differently from one another. From there, segments can start to surface&mdash;brands have more relevant information that, for example, may reveal 10 different store personas across 500 units.&nbsp;

&ldquo;Once you have data at that level of your business and a handle on what&#39;s going on in your system, you can decide how to allocate dollars effectively,&rdquo; Pike said. &ldquo;Most brands have a set budget that is spent evenly across all franchisees because everyone has to be treated equally, but we&#39;ve found that it is not efficient. If store 1 sees a 3:1 ROI, but store 400 sees a 1:1 ROI, those two numbers alone mean spending the same across an entire system isn&rsquo;t wise because one is inefficient.&rdquo;

Johnson posed a similar hypothetical: &ldquo;As a franchisor, I may say that because I added 15 franchisees to my system last year, this year I want to add 20. As an advisor, I&rsquo;d say that number is arbitrary and doesn&rsquo;t account for the rapidly changing environment in which franchising operates,&rdquo; he said. &ldquo;Franchisors should ask themselves, &lsquo;How do we make a better decision? What is the right business plan to put into place? How do we look at the information available to us differently so it leads us to a better outcome?&rdquo;

Achieving better outcomes is at the core of approaching business with an analytical mindset, and both experts proposed a few suggestions for how franchisors can use data to arrive at their ideal outcome and spend more effectively in the process.&nbsp;

According to Pike, better outcomes&mdash;and effective spending&mdash;can be achieved by data collection via two different strategies: Upfront analysis before ever spending a dollar, or testing.&nbsp;

&ldquo;Testing is something marketers don&#39;t do enough; everyone shies away from trial and error,&rdquo; Pike said. &ldquo;Putting money at risk to try something and see if it&rsquo;s effective or how to make it better over time is a great data-collection method. Unfortunately, testing isn&#39;t easy or cheap, but it is the single best way to figure out what works and doesn&#39;t.&rdquo;

Johnson&rsquo;s perspective on utilizing data to drive franchise development spend also emphasizes assessing the outcome of a given plan to effectively modify based off of these learnings to achieve better results.&nbsp;

&ldquo;Look at the number of units your brand opened last year. How long did it take to break even?&rdquo; Johnson asked. &ldquo;Take this information, including economic forecasts, and look at your target prospect. Here is where data comes into play: If you&rsquo;re properly assessing the environment in which you&rsquo;re asking new owners to perform based on previous rates and future climate, you&rsquo;re now equipped to put a plan into action. And when executing, dig into the consequences of your plan to prepare for the future. All of these connecting dots should influence your overall strategy.&rdquo;

Because there&rsquo;s more competition inside (and outside) of the franchise space than ever, and now, more pressure on expenses as the economy slows, finding a way to effectively grow and remain profitable is a challenge that is facing every franchise brand. Such is the reason that running a brand based on intuitive feel or simply by doing what was done last year plus or minus 10% won&rsquo;t cut it&mdash;brands need to be nimble and pursue specific channels that they can ensure are producing measurable results.&nbsp;

As far as where there&rsquo;s the most opportunity for brands to harness data to help dictate future budget allocation, &ldquo;The more targeted a channel can be, the better,&rdquo; Pike said. &ldquo;The things you can do in a channel like Facebook is something that can drive benefit for a gigantic franchisor and a single-unit franchisee alike. It really does level the playing field. Unless their footprint is massive, we push our clients to use more targeted mechanisms initially, then work up to traditional mediums like TV and radio.&rdquo;&nbsp;

There&#39;s no franchisor out there operating in a vacuum as it relates to lead generation and marketing, and the targeting capability of how a dollar is being spent is continuing to get better and smarter by the day.&nbsp;

&ldquo;Leveraging data better than we are today is what will propel brands toward the future,&rdquo; Pike said. &ldquo;No matter who I talk to, no one is doing what they should. The focus needs to be on how you can best be driving strategy on the front end with data&mdash;as people realize data is more than just a measurement, you&#39;ll start to see more of that happening. We think of using data on the back end to measure, but the real benefit comes from using it before ever spending a dollar.&rdquo;

As money gets tighter, using data-driven decision-making to drive budget allocation will be the deciding factor in whether a brand has the systems and structure to survive an economic downturn or not. Where will your brand be?

Why Using Data to Drive Your Franchise Development and Marketing Budgets Will Make or Break Your Brand

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KKR Nears Deal for Nothing Bundt Cakes at $2 Billion

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

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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

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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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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

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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://kbpbrands.com/">KBP Brands</a>, the multi-brand franchisee group with over 1,100 restaurants across 32 states,&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">has announced</a> its acquisition of 78 additional SONIC units. The new units are spread across Ohio, Kentucky, North Carolina, Tennessee and Virginia.This is the second SONIC acquisition KBP has completed in less than two years, and it makes KBP the fourth-largest SONIC franchisee in the system with 164 total locations across eight states.“We’ve had a successful five-year partnership with Inspire Brands and have seen strong results from our initial SONIC purchase,” KBP CEO&nbsp;<a href="https://www.linkedin.com/in/mike-kulp-820820">Mike Kulp</a> said in a statement. “We look forward to expanding that with a larger footprint and additional operational efficiencies.”KBP is one of the country’s largest franchisee groups, reporting approximately $1.5 billion in annual sales across its portfolio, which includes KFC, Taco Bell and Arby’s, another Inspire Brands franchise."Our relationship with KBP Brands continues to grow due to their operational excellence and our shared commitment to guest satisfaction and a culture that champions innovation," said&nbsp;<a href="https://www.linkedin.com/in/john-kelly-b48426b">John Kelly</a>, brand president at SONIC. "KBP's expansion with SONIC demonstrates their dedication to our vision and the brand's long-term growth."Read the full press release&nbsp;<a href="https://www.prnewswire.com/news-releases/kbp-brands-doubles-down-on-sonic-with-78-restaurant-acquisition-302695591.html">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.

Photo of SONIC franchise logo against blue sky backdrop

The franchisee group, which already operates over 1,100 units, is growing its portfolio with the quick-service brand, becoming one of SONIC’s largest franchisees.

KBP Brands Acquires 78 SONIC Locations Across Five States

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Private equity firm KKR is set to buy&nbsp;<a href="https://www.nothingbundtcakes.com/franchise-opportunities/">Nothing Bundt Cakes</a> from Roark Capital for about $2 billion,&nbsp;<a href="https://www.franchisewire.com/kkr-to-buy-700-unit-nothing-bundt-cakes-for-2-billion/">FranchiseWire recently reported</a>. The deal highlights&nbsp;<a href="https://stachecow.com/private-equity-in-franchising-why-pe-keeps-buying-franchise-brands-755">how attractive franchise brands have become for investors</a>.<a href="https://1851franchise.com/franchise-deep-dive-nothing-bundt-cakes-franchise-costs-fees-profit-and-data-2721459">Nothing Bundt Cakes</a> has expanded rapidly in recent years. The brand reached 700 locations in 2025, up from about 390 stores when&nbsp;<a href="https://www.roarkcapital.com/">Roark Capital</a> bought it in 2021. Much of that growth has come from franchisees, who own and operate most of the locations. In 2024 alone, the company added more than 100 new stores.The brand was founded in 1997 by Debbie Shwetz and&nbsp;<a href="https://www.linkedin.com/in/dena-tripp-2a74787/">Dena Tripp</a>, who started baking cakes at home in Las Vegas. Today, it is known for its variety of flavors and simple product lineup, including full-size cakes and Bundtlets.One reason the company stands out is its unit economics. Stores that have been open for at least two years average about $1.4 million in annual sales. That level of performance has made it appealing to both franchisees and investors.KKR has invested in a range of restaurant and food-related businesses. This acquisition adds another established franchise brand to its portfolio.Roark, meanwhile, continues to focus on large franchise systems. Its holdings include brands like&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-subway-franchise-costs-fees-profit-and-data-2722471">Subway</a> and&nbsp;<a href="https://www.google.com/search?q=Dunkin+franchise+deep+dive&amp;oq=Dunkin+franchise+deep+dive&amp;gs_lcrp=EgZjaHJvbWUyCQgAEEUYORigATIGCAEQRRg80gEIMTkzN2owajeoAgCwAgA&amp;sourceid=chrome&amp;ie=UTF-8#:~:text=Dunkin%27%20Franchise%20Costs%2C%20Fees,franchise%2Ddeep%2Ddive%2Ddunkin%2D...">Dunkin'</a>. The firm is also reportedly considering taking its&nbsp;<a href="https://inspirebrands.com/">Inspire Brands</a> platform public, which could raise around $2 billion.Read the full article&nbsp;<a href="https://www.franchisewire.com/kkr-to-buy-700-unit-nothing-bundt-cakes-for-2-billion/">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.

After several years of steady expansion, the brand has reached a scale and level of performance that continues to draw attention from large private equity buyers.

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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Amada Senior Care Franchise Costs, Fees, Profit and Data for 2026

Franchise Opportunity Deep Dive: Amada Senior Care is a non-medical home care, assisted living placement, and related senior-support services with multiple revenue streams.

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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.

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urSwim 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.

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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 Using Data to Drive Your Franchise Development and Marketing Budgets Will Make or Break Your Brand

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