10 Ways To Find Out a Franchise Owner’s Salary and Income

Those who have gone through the process of business ownership know just how important profitability is. That’s why, prior to making the major decision to buy a franchise, prospective franchisees typically inquire about how much money they can make. 

However, some franchisors are reluctant to share this information directly, and gathering accurate information isn’t always easy. Fortunately, there are a handful of methods and resources available to help you uncover valuable insights into franchisee earnings. 

Read the Franchise Disclosure Document

In a video by Vetted Biz, a platform for accessible and analytical data on franchises and businesses, co-founder Patrick Findaro shares several tips for finding key franchisee salary information. One of the first resources he mentions is the franchise disclosure document (FDD). 

Every franchise recruiting franchise candidates is obligated by the Federal Trade Commission to provide an FDD. Within the FDD, many franchises choose to disclose not only their sales figures but also the earnings of their franchisees. This information can be presented on an aggregate basis, combining data from multiple units or on an individual unit basis.

For instance, a franchise with locations in both New Jersey and Florida may reveal the sales and profits of its owners in these different locations. Alternatively, they may provide average or median figures. It's crucial to review Item 19 of the FDD to understand how the franchise breaks down the financial information. It may vary, depending on the duration of operation (ex. 12 or 24 months).

Reach Out to Franchisees

Consider reaching out directly to current and former franchisees of the franchise opportunity you are interested in. You can obtain their contact information from the FDD, or find it listed on an individual franchise location’s website. Talking to franchisees directly allows you to inquire about their past or current financial success with the franchise. But remember to approach franchisees respectfully, clearly state your purpose and be mindful of their time constraints. 

Examine Industry Reports

Look for franchise associations or industry organizations related to the franchise sector you're interested in. They may publish reports, studies or surveys that include average earnings or salary ranges for franchise owners in specific industries. Entrepreneur, for example, offers valuable reports for understanding the income potential of franchise ownership.

Talk to Financial Advisors or Accountants

Consult financial advisors or accountants who specialize in franchising or small businesses. They may be able to guesstimate salary expectations based on industry norms and financial performance.

Join the Franchise Secrets Facebook Group

One of the largest franchise groups on Facebook is called Franchise Secrets. With nearly 5,000 members in the group, it is likely that you will find someone who is willing to give you answers. Sometimes people are willing to share directly within the group, while others prefer to message privately. 

Find Answers on Tegus.com

Another website that might hold key financial information is Tegus.com, an investment research platform. The resource is mostly used in the institutional investment community, including private equity firms and hedge funds. Although franchisors are just a small part of the site’s coverage, it has a solid amount of information about some of the larger brands such as McDonald’s, Pizza Hut and Burger King. The website includes interviews with franchisees and former executives. They often go into detail about how much the owners are making, among other financial topics. 

Contact the Franchisor Directly

In addition to reaching out to franchisees, you can also reach out to a franchisor directly and inquire about franchise owner earnings. Even though some may not provide specific earnings figures, they may be able to offer general insights or put you in touch with existing franchisees who are willing to share their experiences.

Use 1851 Franchise’s Franchise Deep Dives

On 1851 Franchise, we offer Franchise Deep Dives on various brands in the industry. Here, interested readers can find up to date information on franchise brands’ Item 19s, as well as a breakdown of the associated costs with opening a location. 

Do the Math

Some franchisors will have a general figure of the average earnings of their franchisees right on their franchise development pages. To figure out a rough estimate of how much you can make, stack this information up against the initial investment figures (which is also usually found on the franchise development page). 

Seek Professional Advice

Consider consulting with professionals who specialize in franchise businesses, such as franchise consultants, accountants or business brokers. They may have access to industry reports or financial data that can help you gauge franchisee earnings in a particular sector.

Take Everything With a Grain of Salt

Remember that financial success as a franchisee depends on numerous factors, including your dedication, market conditions and competition. Conduct thorough research, speak with existing franchisees and seek professional guidance to gather as much information as possible before making any important investment decisions.