1851

As part of the <a href="https://1851franchise.com/white-house-approves-2-trillion-stimulus-package-2712612">CARES Act</a>, the Paycheck Protection Program was designed to support small businesses affected by the COVID-19 outbreak through forgivable federal loans meant to be spent on securing staff and other expenses. Many brands within the franchise industry have struggled to qualify for these loans.Now, franchisors across all segments have been working hard to educate franchise owners on the CARES Act and the application process, to ensure that each franchisee has the greatest chance of receiving funding.&nbsp;“So far, we’ve seen around 70 percent of franchisees with existing bank relationships receive funding, while those who are trying to go through a larger bank are struggling,” said <a href="https://www.mooyah.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-ppp-loans-can-help-franchisees-save-their-businesses-2713066" target="_blank" rel="nofollow">MOOYAH Burgers, Fries and Shakes</a> Vice President of Operations Mike Sebazco. “It is important to remember that this is meant to be a funding for small businesses, which is where we exist, and it has the opportunity to be the lifeblood for a lot of our franchisees.”Like many brands, the MOOYAH Burgers, Fries and Shakes leadership team worked hard to position franchisees for success and educated each franchise owner on financing options, including SBA loans and the CARES Act. Their mission was to get everybody through this crisis, and the PPP loans were the primary way to do so.&nbsp;“Overall, this PPP process has been a roller-coaster of emotions,” <a href="https://www.youtube.com/watch?v=UYJsB94XYyc&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-ppp-loans-can-help-franchisees-save-their-businesses-2713066" target="_blank" rel="nofollow">said Wisconsin-based MOOYAH franchise owner Josh Bergeson</a>. “I handle all of the accounting for our small business, and the beauty of a franchise system is having a leadership team that understands these processes and is able to communicate the best ways to apply for funding. Also, being able to leverage the franchise as a whole to get a fair shake at the PPP money has been very helpful.”While the $660 billion Paycheck Protection Program was instituted to give small business owners a lifeline during the coronavirus and economic shutdown, the application process certainly hasn’t been easy, as many struggle to be approved. <a href="https://www.cnbc.com/2020/05/04/small-businesses-squeezed-out-of-government-loans-survey-reveals.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-ppp-loans-can-help-franchisees-save-their-businesses-2713066" target="_blank" rel="nofollow">According to a CNBC/SurveyMonkey Small Business Survey released Monday</a>, which surveyed 2,200 small business owners across America,&nbsp; only 13% of the 45% who applied for the PPP were approved.Typically, the Small Business Administration classifies business as “small” only if they employ fewer than 500 people. Because of franchisor approval rights and transfer controls in franchise agreements, franchisees are often considered to be affiliated with franchisors and are prevented from accessing SBA funds without special modifications to the franchise agreement.&nbsp;However, the CARES Act contains a specific affiliation test exemption for franchised businesses (franchisors and franchisees alike) seeking relief as part of the PPP. To ensure that as many businesses as possible in the restaurant and hospitality sector — including franchised businesses — can still take advantage of CARES Act relief, the act and the interim regulations released notes that each franchise entity within a franchise system listed on the SBA Franchise Directory may apply for a PPP loan. Listing on the SBA Franchise Directory exempts only the franchise entity from the PPP affiliation test; each franchise entity still must meet the eligibility requirements for a small business to participate.Although these modifications help franchisees, <a href="https://1851franchise.com/more-large-companies-to-return-ppp-loans-2712955#stories">the program was widely criticized for favoring larger companies</a>. Unsurprisingly, the first round of PPP funding was quickly exhausted. However, Congress infused the PPP with an additional $321 billion on April 24, along with <a href="https://1851franchise.com/paycheck-protection-program-resumes-lending-but-for-how-long-2712953#home">new guidelines from the SBA designed to prevent large and publicly traded companies from receiving PPP loans</a>. The SBA began accepting new applications on April 27.&nbsp;“Borrowers still must certify in good faith that their PPP loan request is necessary,” <a href="https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-ppp-loans-can-help-franchisees-save-their-businesses-2713066" target="_blank" rel="nofollow">the SBA wrote in an FAQ</a>. “It is unlikely that a public company with substantial market value and access to capital markets will be able to make the required certification in good faith, and such a company should be prepared to demonstrate to SBA, upon request, the basis for its certification.”While many large companies, such as Potbelly and <a href="https://1851franchise.com/shake-shack-will-return-10-million-stimulus-loan-2712861">Shake Shack</a>, have returned their loans amidst the new guidelines, others are defending the rights of franchisees. <a href="https://www.cnbc.com/2020/04/29/coronavirus-subway-ceo-defends-franchise-owners-who-applied-for-small-business-loans.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-ppp-loans-can-help-franchisees-save-their-businesses-2713066" target="_blank" rel="nofollow">In a recent interview with CNBC</a>, Subway CEO John Chidsey defended the company’s franchisees who applied for small business loans to help offset the economic impacts from the coronavirus pandemic.&nbsp;Still, it is clear that franchisees are struggling to receive proper funding. <a href="https://www.franchisetimes.com/news/April-2020/SBA-Discriminates-Against-Franchises-Seeking-PPP-Loans-Lawsuit-Says/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-ppp-loans-can-help-franchisees-save-their-businesses-2713066" target="_blank" rel="nofollow">According to a new lawsuit filed in federal court in Washington, D.C.</a>, the Small Business Administration has discriminated against "franchised businesses in general and commercial cleaning franchises in particular" by "unlawfully restricting eligibility for loans" under the temporary Paycheck Protection Program.On the other hand, many small businesses have been turned off by the program’s strict restrictions. For example, the 25/75 rule that says business owners must use 75% of the funds they receive only for payroll, and 25% for rent, mortgage payments, utilities and other operating expenses in order to get loan forgiveness.While franchising comes with its own set of challenges in regards to PPP loans, for many franchisees, this crisis has further illuminated the value of a franchise network. “We are blessed to have a strong franchisor help us through this, and we are excited to come out of this stronger and continue to support our communities,” said Bergeson.

How PPP Loans Can Help Franchisees Save Their Businesses

1851 Franchise

With many franchisees struggling to receive federal financing, franchisors have been working hard to help partners navigate the Paycheck Protection Program loan process.

how-ppp-loans-can-help-franchisees-save-their-businesses

Keke's Breakfast Cafe

Keke’s Breakfast Cafe Has Bold Franchise Growth Plans for 2026

kekes-breakfast-cafe-has-bold-franchise-growth-plans-for-2026

Comfort Keepers

What Care Services Do Comfort Keepers® Franchisees Provide? A Look at Personalized In-Home Care and Owner Responsibilities

comfort-keepers-franchise-personalized-care-services

Wild Bill's Craft Beverage Company

Wild Bill's San Diego Signing - Drew St. Cyr - 1851 Franchise

From Marine to Franchise Owner: Why Drew St. Cyr Is Bringing Wild Bill’s to San Diego

franchise-san-diego-drew-st-cyr

Layne's Chicken Fingers

Photo of Layne's Chicken Fingers franchisees, UW-La Crosse alums, Luke and Josh Bergeson

Why These University of Wisconsin-La Crosse Alums Bought Into Layne’s Chicken Fingers

uw-la-crosse-alum

Right at Home

Right at Home Margaret Haynes?Named 2026 McKnight’s Women of Distinction Hall of Honor Honoree

Right at Home Leader Margaret Haynes Named 2026 McKnight’s Women of Distinction Hall of Honor Honoree

right-at-home-leader-margaret-haynes-named-2026-mcknights-women-of-distinction-hall-of-honor-honoree

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

The Top 10 Low-Cost Franchises With High ROI 

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

McDonald’s and Burger King Take the QSR Burger Wars to Social Media

mcdonalds-and-burger-king-take-the-qsr-burger-wars-to-social-media

Yum! Brands Pizza Hut Sale - 1851 Franchise

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

yum-brands-pizza-hut-sale

Restaurants Stand Out in 2025 Hiring as Consumers Look for Simple Treats

restaurants-stand-out-in-2025-hiring-as-consumers-look-for-simple-treats

Photo of SONIC franchise logo against blue sky backdrop

KBP Brands Acquires 78 SONIC Locations Across Five States

kbp-brands-sonic-acquisition

IFA Releases 2026 Franchising Economic Outlook Report, Predicting Over 12,000 New Franchised Businesses This Year

2026-franchising-economic-outlook-report

<a href="https://hardeesfranchising.com/">Hardee’s</a>, a 65-year-old burger chain best known for its Thickburgers and breakfast biscuits, is facing a fast-moving round of closures driven by a franchise dispute rather than a bankruptcy filing.&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">Inc. recently reported that</a> 77&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-hardees-franchise-costs-fees-profit-and-data-2721286">Hardee’s</a> restaurants are expected to close within two weeks as one of the brand’s largest franchisees exits the system.&nbsp;According to the report, Hardee’s is suing&nbsp;<a href="https://www.arcburger.com/">ARC Burger</a> — a franchise operator owned by&nbsp;<a href="https://www.highbluffcap.com/">High Bluff Capital Partners</a> — alleging the company fell behind on required payments and other contract obligations. Twenty-eight locations had already gone dark as of late December, with remaining sites scheduled to shutter across eight states: Alabama, Florida, Georgia, Illinois, Missouri, Montana, South Carolina and Wyoming.&nbsp;At the center of the complaint is the franchising “stack” of ongoing fees and pass-through costs that keep a system running. ARC Burger allegedly owes more than $6.5 million, including royalties, advertising fund contributions, technology and training fees, rent and taxes, and that payments stopped in December 2024. Hardee’s also argued in the lawsuit that the franchisee’s cash flow was not being used to bring accounts current.&nbsp;Hardee’s, for its part, is framing the shutdowns as a contractual enforcement issue, not a brand-wide retrenchment. “These closures are a result of ARC Burger’s failure to cure its defaults under its franchise agreements, despite solid sales,” a Hardee’s spokesperson said.&nbsp;The situation highlights a familiar franchising pressure point: unit economics. Inc. reported that Hardee’s operates more than 1,800 U.S. restaurants and that average annual sales per location are less than $1.2 million, well below averages cited for&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-wendys-franchise-costs-fees-profit-and-data-2722520">Wendy’s</a> and&nbsp;<a href="https://1851franchise.com/how-much-does-it-cost-to-buy-a-mcdonalds-franchise-2724654#stories">McDonald’s</a>. Lower volumes can leave franchisees with less room to absorb higher labor, food and occupancy costs while staying current on fees.&nbsp;Hardee’s said it is working to limit fallout for workers and communities and is looking for ways to reopen closed restaurants. For franchising, the next chapter will likely involve finding replacement operators, transferring sites and rebuilding compliance — a reminder that franchise growth depends as much on franchisee solvency and execution as it does on consumer demand.Read the original article&nbsp;<a href="https://www.inc.com/ava-levinson/hardees-shutting-dozens-restaurants/91282586">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.

Hardee's Franchise - ARC Burger Lawsuit - 1851 Franchise

The closures stem from alleged unpaid royalties and missed franchise obligations by a major operator, not a broader chainwide collapse for the Hardee’s system.

Hardee’s Lawsuit Targets Franchisee as 77 Restaurants Prepare to Shut Down

hardees-franchise-closures-arc-burger-lawsuit

As the health and wellness business in America continues to fill out, the fitness industry is growing alongside it. The industry now generates&nbsp;<a href="https://www.ibisworld.com/united-states/industry/gym-fitness-franchises/5599/">over $7 billion</a> in annual revenue, with a revenue increase of nearly 3% in 2023 alone.Rebounding since COVID, both big box and boutique franchises have shown&nbsp;<a href="https://athletechnews.com/fitness-franchising-by-the-numbers-10-key-stats/">membership growth</a>, with premium establishments up 21% compared to a whopping enrollment bump of almost 70% on the budget gym side.&nbsp;&nbsp;<h3>The Pros And Cons Of Big Box Gyms</h3>When it comes to choosing the right fitness franchise, there are pros and cons to each.Big box gyms are able to cast a wider net, attracting a clientele ranging anywhere from newbie to seasoned veteran, with a lower cost of entry potentially attracting even the marginally curious to the idea of a well-established, properly marketed brand.&nbsp;Big box and other low-cost fitness franchises are also able to capitalize on services like personal training and retail amenities, increasing revenue.Driven by recurring membership fees, big box gyms generally cost less. However, the wider net cast in terms of building a clientele, tends to require more equipment in a bigger space, increasing costs like rent. And with a wider array of workout machines to both service and maintain, additional costs tend to follow.<h3>The Pros And Cons Of Boutique Fitness Concepts</h3>On the boutique side, franchises are typically able to offer a more personalized fitness experience, catering to niche markets with an eye on community, quality and loyalty. However, a more hands on approach to management and day-to-day operations may also be necessary to deliver the more customized, immersive experience often demanded of the more boutique environment.As a result, boutique fitness concepts are typically able to capitalize on a more premium pricing model driven by the idea of exclusivity.But, while less equipment in a smaller space can help rein in expenses, it can also be difficult to build the more specific clientele required by the boutique experience, rendering selection of proper location crucial.<h3>Finding The Right Fit</h3>As potential franchisees assess the available opportunities in the fitness franchise realm, it’s important to ponder a number of factors which can impact the bottom line.In terms of budgeting, a full understanding of both initial investment and ongoing operational costs is crucial.&nbsp;Getting to know the customer and surrounding area can help franchisees assess just how much the consumer is looking to pay for a gym membership, helping clarify the big box versus boutique decision when it comes to the question of how to buy a franchise.There’s also market saturation, with big box gyms in particular becoming an increasingly crowded marketplace.On the management side, it’s important for franchisees to seize upon a specific approach, whether it’s applying a more hands on style to the level of personal interaction required on the boutique side or focusing on the moving parts in play in the larger, more complex big box environment.&nbsp;When it comes to buying a fitness franchise, an understanding of the consumer, proper assessment of the marketplace and specific approach to management can go a long way towards avoiding potential risk, helping franchisees find success as they ponder entrepreneurship via fitness franchises.For more info on fitness franchises, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/fitness-franchises-2025-trends-opportunities-2729600">The Rise of Fitness Franchises in 2025: Trends, Opportunities and What to Expect</a></li><li><a href="https://1851franchise.com/top-health-and-wellness-franchises-2729821">Top 15 Health and Wellness Franchises Opportunities for 2025</a></li><li><a href="https://1851franchise.com/fitness-wellness-franchise-guide-2729443">How To Choose the Right Fitness or Wellness Franchise for You</a></li></ul>

Buying a fitness franchise, people exercising

As the fitness industry continues to grow fast, the decision for potential franchisees lies in whether to invest in big box or boutique gym franchise opportunities.

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

<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.

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.

The fast-food “burger wars” have gained new momentum following the launch of&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-mcdonalds-franchise-costs-fees-profit-and-data-for-2025-2720737">McDonald's</a> newest oversized menu item, the&nbsp;<a href="https://www.mcdonalds.com/us/en-us/product/big-arch-burger.html">Big Arch Burger</a>. The sandwich is designed to appeal to customers who want a larger burger than the traditional Quarter Pounder offerings, and it represents a major product push for the company. CEO&nbsp;<a href="https://www.linkedin.com/in/chriskempczinski/">Chris Kempczinski</a> has been closely associated with the launch and even promoted the burger on his Instagram channel, where he frequently posts videos about menu items, travel and career advice.Kempczinski posted a promo video where he filmed himself with the Big Arch Burger, commenting on its size before finally taking a bite. But let's just say social media wasn't buying it.&nbsp;<figure class="media"><div data-oembed-url="https://www.instagram.com/p/DUTZ_ilDl41/"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Fwww.instagram.com%2Fp%2FDUTZ_ilDl41%2F" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>People immediately criticized the clip, suggesting his tiny bite and general way of acting seemed fake. The video blew up and became a big meme, with people poking fun at the whole moment and wondering if the CEO's reaction was even real.<figure class="media"><div data-oembed-url="https://x.com/TrungTPhan/status/2028174448646594902"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Fx.com%2FTrungTPhan%2Fstatus%2F2028174448646594902" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>Rival chain&nbsp;<a href="https://1851franchise.com/franchise-deep-dive-burger-king-franchise-costs-fees-profit-and-data-2720751">Burger King</a> seized the opportunity to poke fun at the situation. The company reposted a video of its North America president,&nbsp;<a href="https://www.linkedin.com/in/tom-curtis-43646018">Tom Curtis</a>, taking an exaggeratedly large bite of a Whopper — complete with mayonnaise on his face — in a playful jab at McDonald’s viral moment.&nbsp;<a href="https://news.bk.com/blog-posts/burger-king-elevates-its-most-iconic-product-the-whopper-r">Burger King recently updated its Whopper recipe</a>, making the timing of the social media exchange particularly fitting.<figure class="media"><div data-oembed-url="https://www.instagram.com/p/DVZoZQJjti8/"><div class="iframely-embed"><div class="iframely-responsive"><iframe src="//cdn.iframe.ly/api/iframe?app=1&amp;api_key=fd3b6b3731f34f55ba1fe3&amp;url=https%3A%2F%2Fwww.instagram.com%2Fp%2FDVZoZQJjti8%2F" frameborder="0" allow="autoplay; encrypted-media" allowfullscreen=""></iframe></div></div></div></figure>Criticism aside, the video sparked chatter at the perfect time, just ahead of the Big Arch Burger’s nationwide launch. The takes were all over the map, but the attention lift was real for both brands. These days, the burger wars don’t just happen at the counter — they happen in the feed.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.

A viral video of McDonald’s CEO’s tiny bite sparks online jokes, brand rivalry and fresh buzz as the Big Arch Burger enters the fast-food battle.

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

how-much-can-franchisees-make-a-guide-expert-tips

Ellianos Coffee Franchise Costs, Fees, Profit and Data for 2025

Franchise Opportunity Deep Dive: A drive-thru specialty coffee franchise focused on speed, quality and Southern hospitality.

ellianos-coffee-franchise-costs-fees-profit-and-data

The linear sales funnel is dying. Prospective buyers are no longer filling out a form at first glance and waiting for the phone to ring. They’re doing the majority of the heavy lifting before they even make themselves known to the franchisor. For franchisors, this means one key thing: you must know exactly where candidates spend their time. No guesswork. And you have to adjust your strategy accordingly.And, in today's buyer world, the biggest buzz term is 2026's ride or die for franchise brands – Ai.&nbsp;If you are trying to sell a franchise today, you must meet candidates where they are (four walls, Ai, website, social advertising).&nbsp;Focusing on a strong digital footprint first and then lead generation will help the brand with validation and will lay the foundation for trust before the first conversation even happens. Still, franchisors must know where to find their candidates and be confident the candidates are being sent to the right place.“We consistently see the strongest lead performance from Google Search (paid and organic), social platforms such as Facebook, Instagram and LinkedIn and our franchise development website,” said&nbsp;<a href="https://www.linkedin.com/in/erinlsnyder">Erin Snyder</a>, head of franchise development at&nbsp;<a href="https://handelsicecream.com/handels-franchise/">Handel’s Homemade Ice Cream</a>. “Because all awareness and advertising efforts ultimately funnel candidates to our development site, maintaining a highly optimized, mobile-first web presence is critical for conversion.”<h2>The "Hidden" Channels: Authentic Research via AiSEO</h2>While Google and major portals are often where a candidate might start a broad search, the deep research happens in the shadows. This is where candidates scroll, mindlessly or otherwise, simply observing rather than clicking “apply” immediately; or, ask Ai chatbots about the best franchises to buy, the blind spots, the why nots, and, of course, the whys.Right now, Ai plays a key role in this research stage. Buyers want the truth.&nbsp;For franchisors, this means your content strategy must pivot. It is no longer enough to post stock photos of happy business owners. You must document the journey, showing the behind-the-scenes reality that proves your concept has staying power.<h2>The Pivot From Print to Digital Interactivity</h2>While print media has been a channel for franchise development in the past, its static nature has made it less effective as the buyer’s journey has shifted to digital. Buyers are generally looking for channels that will allow them to click, read and continue the search immediately.“Traditional print media has largely become a thing of the past for franchise development,” Snyder said. “What has been encouraging, though, is seeing many of these publications successfully pivot to digital formats that offer greater interactivity, stronger analytics and far better linkability than print ever could.”This creates a more dynamic experience for the candidate. In addition to a digital article, franchisors can embed a “day in the life” video, for example, or hyperlink a deeper dive on costs and profits for instant validation.This shift also allows franchisors to track return on investment more effectively. Instead of guessing if an article or ad worked, digital publications allow you to see exactly who clicked through, allowing for retargeting and smarter budget allocation.<h2>The Conversion Hub: Your Mobile-First Website</h2>Once a candidate has discovered you on Google, watched your videos on TikTok and read about you in a digital publication, they finally arrive at the destination: your franchise development website.This is the bottom of the funnel, where you will win or lose a candidate. Because all other channels point here, your website cannot just be a digital brochure. It has to be a conversion engine. And crucially, it must work perfectly on a smartphone.The question can’t just be “Do we have a website?” Questions about the website should surround usability and readability. Is navigation easy on a smartphone? Does the site load quickly? Is it readable? If a prospect has to pinch-and-zoom to read your investment costs and financial performance, they will leave.An optimized, mobile-first presence is critical because it serves as the collection point; all other awareness efforts funnel potential franchisees to the site. The user experience here should validate the trust built on other channels. However, accessibility is only half the battle; the content itself must be unsparingly open. The website is the channel where you must prove your value proposition with hard data.“Across all channels, the messaging needs to be clear, concise and consistent,” Snyder said. “Candidates should be able to easily find transparent investment ranges and financial requirements, a clear value proposition, compelling franchisee success stories, key differentiators from competitors and straightforward next steps for how to inquire.”When you treat your website as a transparency engine rather than a gatekeeper, you change the dynamic of the eventual sales call. A candidate who has already consumed your financial data and success stories arrives at the inquiry stage educated and qualified. This allows the development team to skip the basic fact-finding and move straight to strategy and fit.“When a candidate submits an inquiry, the first conversation should build on what the candidate has already learned,” Snyder said “ensuring they understand the opportunity they are considering, clarifying details, personalizing the discussion to their goals and moving them into a structured education process rather than starting from scratch.”<h2>Allocating the Budget: The "Ideal Candidate" Approach</h2>While a presence across multiple channels — from search and social to digital publications — is key, understanding exactly how much to invest in each option is the next hurdle. There is no single, magical approach to budgeting; a brand selling multi-million-dollar franchises needs to develop a presence in different places than a low-cost, mobile franchise will.To spend effectively, you must deeply understand your ideal franchisee profile. Once you know who is investing, you can begin working on where to find them. For example, a high-net-worth investor might be on LinkedIn and reading digital trade journals, while a first-time investor or someone seeking an owner-operator model might be influenced by local Facebook ads.“Franchisors should start by understanding their ideal franchisee profile and then allocate budget toward the channels where those prospects spend the most time,” Snyder said. “The mix will naturally look different for a high-investment, multi-unit candidate than for a first-time owner-operator. Beyond that, it’s critical to consider overall brand awareness and invest in channels that consistently get both the brand and the franchise opportunity in front of qualified prospects. A balanced approach that supports both awareness and lead capture tends to produce the strongest results.”<h2>Key Takeaways and Next Steps:</h2>Make sure you have a content footprint that answers the top 25 questions asked about your brand in Ai and Google searchs.Review your mobile experience: Open your franchise development site on your phone. If it takes more than three seconds to load or if the "Apply" button is hard to find, fix it immediately.Embrace "lo-fi" video content: You don't need a production crew. Use a smartphone to record "day in the life" videos with your franchisees and post them to social to build authentic trust.Ensure transparency and continuity:&nbsp;Candidates need to be able to find the information they’re looking for, and the experience should be consistent between a social page and a franchise development site. Make sure your value proposition is clear across all channels.Embrace innovation, but don’t count out the classics:&nbsp;Look at the whole picture. Many candidates are exploring opportunities on supplemental platforms like social media or in the results of a Google search, but they’re still looking at the franchise development site, too. Don’t confine yourself to the “old reliable” methods, but don’t leave them behind, either.Budget by persona, not platform: Don't just "do Facebook ads." Define exactly who your buyer is, and spend your money only on the channels where that specific person consumes content.For more information on franchise growth channels, check out these related stories on 1851 Franchise:<ul><li><a href="https://1851franchise.com/how-to-use-social-media-marketing-to-promote-your-franchise-2727185#stories">How To Use Social Media Marketing To Promote Your Franchise</a></li><li><a href="https://1851franchise.com/building-a-franchise-website-that-converts-key-features-and-best-practices-2727363#stories">Building a Franchise Website That Converts: Key Features and Best Practices</a></li><li><a href="https://www.youtube.com/watch?v=vlfduHqGy7I">How to Sell Franchises | The Buyer Persona</a></li></ul>

To succeed in the shifting landscape, franchisors must understand the buyer’s journey, identify the ideal franchisee profile, and build a digital presence that meets candidates where they are.

How To Sell Franchises in 2026 — Top Channels Franchise Buyers Use Before They Inquire

top-channels-franchise-buyers-use

Window Genie Franchise - Deep Dive 2025 - 1851 Franchise

Franchise Opportunity Deep Dive: Window Genie is an owner-led, multi-service exterior cleaning brand with recurring demand and Neighborly backing that simplifies operations and supports growth.

How PPP Loans Can Help Franchisees Save Their Businesses

MORE STORIES LIKE THIS