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This summer, ALEC-Laffer published its annual <a href="https://www.alec.org/app/uploads/2020/08/RSPS_13th-Edtion_State-Pages_final.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Economic Competitiveness Rankings</a>, which forecasts a state’s current standing within 15 state policy variables. The report features two different rankings: Economic Outlook — a forecast based on a state’s current standing in 15 state policy variables — and Economic Performance — a retrospective measure based on a state’s performance over a 10-year period from 2008 until 2018. For the state of Virginia, 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>2020 Outlook Ranking: 16</li><li>2008–2018 Performance Ranking: 29</li></ul>&nbsp;<h4>The State</h4>Virginia’s economy is relatively diverse and does not rely heavily on any one industry for their income. Though <a href="https://www.vdacs.virginia.gov/markets-and-finance-agriculture-facts-and-figures.shtml?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">agriculture is the top sector in the Purple Heart State</a>, balance is derived from heavy hands in other industries like health care, defense contracting, and software.&nbsp;Although the state has faced its share of issues under the COVID-19 pandemic, Virginia is currently ranked 12th among the 50 states for recovery. In June, the <a href="https://www.thecentersquare.com/virginia/covid-19-era-economy-in-virginia-ranked-12th-best-among-50-states/article_c80f1d54-f246-11ea-86b0-133f79b56148.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">number of jobless Virginians</a> hit 8.4 percent, a rate that was lower than many other states. It was reported that Virginia <a href="https://www.thecentersquare.com/virginia/virginia-revenue-projections-remain-stable-economic-boost-not-likely-until-covid-19-vaccine-available/article_cf2a6600-f7a2-11ea-909d-db9586afc353.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">revenue projections have stabilized in September</a>, but projections are about $2.5 billion less than originally expected at the beginning of 2020. Virginia economists have predicted that the state’s economy is unlikely to see a boost in revenue until a vaccine for the COVID-19 virus is developed.<h4>Making Sense of the Data</h4>What does this mean for Virginia’s economy? To start with the Economic Performance report, the index shows that within the past ten years, Virginia has been outperformed by 21 other state economies. The performance index is based broadly on a state’s performance within State Gross Domestic Product, Absolute Domestic Migration and Non-Farm Payroll Employment. The category that slowed the state down was their State Gross Domestic Product, which saw a 33.5 percent growth in ten years, raking them 34. However, it didn’t completely squash their ranking, as the state was listed in the middle of the pack for all three data points. With an already diverse economy, Virginia only grew 6.9 percent in this category and was ranked 25 overall. The state also lost 30,217 in their overall population in a ten-year span, which led to what was perhaps their best ranking of the three at 29.The Economic Outlook tells another story about the Virginia 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, are influenced directly by state lawmakers through the legislative process. In this ranking, Virginia is seated 16th. Of all the variables, Virginia ranked highest for Estate &amp; Inheritance Tax Levied and State Minimum Wage.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 business, it shouldn’t discourage them from investing in the franchise of their dreams if they're in a market with a slower growth rate. For states like Virginia, this presents an opportunity to grow.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. Although in the past Virginia has been in the middle of the pack in performance, its comparatively stable economy in the pandemic may put them ahead in the coming years.<h4>Franchise Growth Plans</h4>So what should franchisors do with this information? 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, the findings within the report should not be the deciding measure for franchisors, but they should play a role in the decision.&nbsp;<h4><a href="https://www.atomicwings.com/franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Atomic Wings</a></h4><ul><li>Current units in state: 0</li><li>Growth capacity in state: 5+</li><li>Total jobs created at max growth capacity: 75+</li></ul>&nbsp;Zak Omar, CEO of <a href="https://1851franchise.com/atomicwings">New York-based wing franchise Atomic Wings</a> said growing concentrically within the region makes the most sense for their brand to capitalize on brand recognition.&nbsp;"We have great brand recognition in the Northeast,” said Omar. “We've done a brand survey in the tri-state area, and we realize that our brand awareness is strong within those states. That's why it's not a reach for us to expand up and down the East Coast. It's similar to what Dunkin' did when they first started expanding — we're going to build our base and then take on major markets to the West. We've done well in the largest city in America, so we're looking forward to taking that model and getting it up and bringing it to other metropolitan areas and suburbs as well."<h4><a href="https://sylvanfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Sylvan Learning</a></h4><ul><li>Current units in state: 17</li><li>Growth capacity in state: 27</li><li>Total jobs created at max growth capacity: 270</li></ul>John McAuliffe, <a href="https://1851franchise.com/sylvanlearning">Sylvan Learning</a> CEO, seconded the notion of strategic growth. According to the early education franchisor, the state has opportunities for the right businesses that currently fit the needs of the population.“We pick areas to focus our franchise development efforts based on demographic data we receive from our mapping system provider,” said McAuliffe. “We look for areas with a high concentration of families with school-age children whose annual income is $50k or above. We also look at some other factors such as shopping centers, where tutoring centers can be located, schools and competition.”<h4><a href="https://homecleanheroes.com/franchise-opportunity/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Home Clean Heroes*</a></h4><ul><li>Current units in state: 2</li><li>Growth capacity in state: 20</li><li>Total jobs created at max growth capacity: 140</li></ul>President of <a href="https://1851franchise.com/homecleanheroes/search-results?by_author=1&amp;by_title=1&amp;by_desc=1&amp;by_keywords=1&amp;_csrf=LnCpidZ4P1sCQ7F0gTXtHp5vqPQIgDGyqpZuytzNnnliF-_ZryBuHHEc4xzObZUrxF6enGbGWf_L-1qT75jNLw%3D%3D&amp;id=bc02eed46e&amp;EMAIL=&amp;subscribeNews=on&amp;search_input=&amp;brandId=460&amp;advsrch=7d&amp;date_range=&amp;loadMoreUrl=%2Fhomecleanheroes%2Fhome%2Floadmoreresults.html&amp;covarAjaxLimit=12&amp;searchOffset=0&amp;totalResultsCnt=-10&amp;date_range_2=">Home Clean Heroes</a> franchise Joe Delatte says building out the brand concentrically and regionally where the brand is already known is critical to its growth projection.“It’s no secret we aren’t the first residential cleaning business model, but we are excited to bring a fresh approach to markets in states where this particular model and franchise opportunity haven't been available,” said Delatte. “We’ve gained great traction in the Southeast and are looking to build out neighboring territories to existing locations. We look at income and household numbers in these markets and along with website analytics. States like Virginia, North Carolina, South Carolina, Georgia, Florida and Texas are some of the areas we're excited about expanding into.”<h4>Franchise Brands Headquartered in Virginia</h4><ul><li><a href="http://www.abrakadoodle.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Abrakadoodle</a></li><li><a href="https://www.benjerry.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Ben &amp; Jerry's Franchising, Inc.</a></li><li><a href="https://bgrtheburgerjoint.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">BGR The Burger Joint</a></li><li><a href="https://www.franchising.com/crumbgetitcookiecompany/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Crumb &amp; Get It Cookie Company</a></li><li><a href="https://nashvilledailygrind.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Daily Grind Coffee House and Café</a></li><li><a href="https://doodycalls.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Doody Calls</a></li><li><a href="https://dramakids.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Drama Kids International, Inc.</a></li><li><a href="https://www.fatbrands.com/elevation?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Elevation Burger</a></li><li><a href="https://www.engineeringforkidsfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Engineering for Kids</a></li><li><a href="https://www.firenzapizza.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Firenza Pizza</a></li><li><a href="https://www.fiveguys.com/contact-us/franchisee-form?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Five Guys Famous Burgers and Fries</a></li><li><a href="https://www.fostersgrille.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Foster's Grille</a></li><li><a href="http://www.geeksoncall.com.au/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Geeks On Call</a></li><li><a href="https://www.glorydaysgrill.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Glory Days Grill</a></li><li><a href="https://www.kinderdance.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Kinderdance</a></li><li><a href="https://www.libertytaxfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Liberty Tax Service</a></li><li><a href="https://mosquitojoefranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Mosquito Joe</a></li><li><a href="http://nestlecafe.com/franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Nestle Toll House Cafe by Chip</a></li><li><a href="https://www.precisiontune.com/franchising/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Precision Tune Auto Care</a></li><li><a href="https://www.premiumservicebrands.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Premium Service Brands</a><ul><li><a href="https://www.premiumservicebrands.com/360-painting/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">360° Painting</a></li><li><a href="https://www.premiumservicebrands.com/handyman-pro/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Handyman Pro</a></li><li><a href="https://www.premiumservicebrands.com/kitchen-wise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Kitchen Wise&nbsp;</a></li><li><a href="https://www.premiumservicebrands.com/maid-right/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Maid Right</a></li><li><a href="https://www.premiumservicebrands.com/prolift-garage-doors/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">ProLift Garage Doors</a></li><li><a href="https://www.premiumservicebrands.com/renew-crew/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Renew Crew</a></li></ul></li><li><a href="https://franchising.leafspringschool.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Leaf Spring School</a></li><li><a href="https://www.outdoorlightingfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Outdoor Lighting Perspectives</a></li><li><a href="https://www.revolismfranchise.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">REVOLISM</a></li><li><a href="https://rompnroll.com/franchise?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Romp N Roll</a></li><li><a href="https://www.siempretax.com/en/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Siempre Tax</a></li><li><a href="https://securis.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Securis</a></li><li><a href="https://sweetfrogfranchising.com/investment/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">SweetFrog</a></li><li><a href="https://www.vapiano.com/en/franchising-concept/franchise-requirements/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Vapiano</a></li><li><a href="https://western-sizzlin.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=what-virginias-economic-outlook-means-for-franchisors-2714109" target="_blank" rel="nofollow">Western Sizzlin</a></li><li><a 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Virginia's Economy & Its Impact on Franchisors | 1851 Franchise

1851 Franchise

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

What Virginia’s Economic Outlook Means for Franchisors

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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

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Wild Bill's Craft Beverage Company

How This Franchisee Built a Sustainable Business With Wild Bill’s Craft BeverageCo.

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Layne's Chicken Fingers

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Why Layne’s Chicken Fingers Shines as the Real Chicken Finger Contender: What Franchisees Should Know

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Right at Home Targets Clermont County and Nearby Rural Communities for In-Home Care Growth

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Minuteman Press International

Minuteman Press franchise team, Galveston, Texas.

Minuteman Press Franchise Owner Dennis Murray Talks Career Change to Printing in Galveston, TX

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

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Yum! Brands Pizza Hut Sale - 1851 Franchise

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

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

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Photo of SONIC franchise logo against blue sky backdrop

KBP Brands Acquires 78 SONIC Locations Across Five States

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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

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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>

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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?

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<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&nbsp;<a href="https://www.franchise.org/">International Franchise Association</a> has released its annual&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">Franchising Economic Outlook</a> report for 2026, painting the picture for a positive year of growth after notable economic turbulence in 2025.“The resilience of franchising has enabled our model to adapt, endure and thrive in the face of challenging macroeconomic headwinds,”&nbsp;<a href="https://www.linkedin.com/in/matthewhaller">Matt Haller</a>, IFA president and CEO, said in a release. "After a year of recalibration, franchising is better positioned to navigate an improving economic environment than independent businesses due to tax certainty, lower interest rates and investments in AI that will propel brand growth, franchisee unit-level economics and wage growth for the franchise workforce."The report features key industry projections for the year, including:<ul><li>The addition of over 12,000 new franchised businesses</li><li>The addition of over 150,000 jobs — meaning the industry will represent nearly 8.9 million jobs</li><li>An increase in total franchise GDP from $549.9 to $558.4 billion</li><li>An increase in multi-unit ownership as current single-unit franchisees pursue scale</li></ul>In addition to the strength of the industry as a whole, the organization highlighted segment-specific trends.&nbsp;<ul><li>This year, child services and commercial and residential services are recognized as top performers, expected to achieve a 3.2% year-over-year growth rate.</li><li>A focus on experiential dining, rather than value alone, may drive full-service restaurants to outpace quick-service brands in output growth.</li><li>Preventive health care has risen to be the third-largest franchised industry, and it represents strong opportunities as consumer awareness surrounding preventive health care persists.</li></ul>In terms of growth markets, Texas continues to lead the country as the fastest-growing state for franchising, followed by Florida, Georgia, Arizona and North Carolina. Michigan, Ohio and Utah have joined the top 10 this year thanks to their relative affordability and the potential they offer for market leadership and long-term growth.The outlook for 2026 is upbeat, and the drivers behind it look different than they did a few years ago. More brands are putting AI and automation to work in day-to-day operations, which helps franchisees move faster on basics like scheduling and inventory and stay tighter on margins.The growth in multi-unit ownership points to a shift in how people are approaching franchising. More operators are treating it like a scalable investment, focused on building an asset, not just buying themselves a job.As the year ramps up, IFA’s data suggests growth in 2026 will be driven by those leveraging the scale of the franchise model, embracing a tech-forward approach to business ownership, and staying agile in an evolving business landscape.Find the full 2026 Franchising Economic Outlook report&nbsp;<a href="https://www.franchise.org/franchising-economic-outlook/">here</a>.

Highlighting child services and commercial and residential services as top performers, the organization predicts the industry will add over 150,000 jobs and increase its GDP by billions this year.

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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For&nbsp;<a href="https://1851franchise.com/trubluehomeserviceally/why-these-tenured-franchisees-continue-to-grow-with-trublue-2726985">Tim and Kay Diemont</a>, owning a&nbsp;<a href="https://www.trubluefranchise.com/">TruBlue Home Service Ally</a> franchise in Yorktown, Virginia, is a shared purpose. Over the past decade, the couple has built one of&nbsp;<a href="https://1851franchise.com/trubluehomeserviceally/info">TruBlue’s</a> most successful and enduring operations, all while strengthening their marriage, deepening their community connections and setting an example for what family-owned franchising can achieve.By the time TruBlue came into their lives, both Tim and Kay were ready for a new chapter.“Tim was working as a regional director of stores and in charge of the East Coast. I had been with the same architectural firm for 20 years,” Kay said. “Tim was tired of the corporate demands, traveling and wanted to be home more. He also wanted to be doing something that would be rewarding and help in our community — the community where we raised our two sons. My employer was getting ready to retire and, since [Tim and I] had always wanted to work together, the timing seemed perfect for both of us.”The couple’s shared vision aligned perfectly with&nbsp;<a href="https://1851franchise.com/trubluehomeserviceally/why-trublue-is-a-strong-franchise-choice-in-the-growing-senior-industry-2728519">TruBlue’s mission of helping seniors and busy families maintain their homes with ease and peace of mind</a>.<h2>From Marriage Partners to Business Partners</h2>Transitioning from life partners to business partners came naturally to the Diemonts.“Since we were already partners, this new partnership was an easy transition,” Kay said. “Tim knew how to manage people and had been in a leadership position for many years. I was already trained administratively and had worked in marketing for both the architectural firm and for a local mayor. So, my community connections were very strong in this area.”Their complementary skill sets have proven invaluable. A U.S. Air Force veteran originally from Michigan, Tim brought strong operational and leadership experience from his years managing retail teams. Kay, who has lived in the Yorktown area her entire life, leveraged her local relationships and administrative background to handle marketing and office management.The couple’s oldest son, Derrick, is a systems engineer who has contributed to the business over the years. “His expertise with setting up our computer needs and just his overall help with the business was and continues to be a huge plus,” Kay said.The Diemonts say that working together has improved their&nbsp;<a href="https://1851franchise.com/strategicfranchising/work-life-balance-as-a-franchise-owner-is-it-possible-2728825">work-life balance</a> rather than complicating it. “Since we work together, our schedules are the same,” Kay said. “We can take as much time off as we want or need, and we enjoy traveling extensively every year.”<h2>Choosing TruBlue for Their Family’s Next Chapter</h2>When the Diemonts first began exploring franchise ownership, they were drawn to opportunities that allowed them to&nbsp;<a href="https://1851franchise.com/the-top-25-franchise-brands-committed-to-serving-their-communities-2724335">serve their community</a>.“Tim was looking into a senior care franchise and at the time the one he was interested in pursuing was already taken in our area,” Kay said. “The person he was speaking with at&nbsp;<a href="https://strategicfranchising.com/">Strategic Franchising</a> mentioned a new franchise they were developing. It sounded like a perfect fit for someone who already knew managerial and handyman skills. We were one of the first to open a TruBlue, and we have been the proud owners since 2013.”The TruBlue model — focused on home maintenance, handyman services and senior safety — felt like the right blend of purpose and practicality. “Tim always had faith and knew we would be a success,” Kay said. “The model for TruBlue was perfect! Our co-workers, family and friends loved the concept, and we had customers lined up before we ever purchased our territory.”<h2>Family Ownership in Action</h2>As business partners, the Diemonts run their franchise with the same&nbsp;<a href="https://1851franchise.com/how-a-franchisor-can-cultivate-a-strong-franchise-community-2722789">teamwork and communication</a> that have defined their marriage for nearly five decades.“We have great partners, who are like-minded to bounce ideas through,” Kay said. “All our employees know they can come to either one of us with a question or a problem and 98% of the time, they will get the exact response from us. The other small percentage is only due to Tim’s knowledge of certain handyman jobs and mine would be administrative questions regarding invoicing or payroll.”That united front has helped them build a loyal team and a strong reputation throughout Yorktown and the surrounding Peninsula communities. “Our client base is strong because we provide our customers with a good service at a great value, and it is continually growing,” Kay said. “Our employees are happy to be a part of our team and we are sure all of them would stay with or continue with any new owner, whether it be family or someone new.”<h2>Building a Family Legacy</h2>After more than 10 years in business, the Diemonts have watched TruBlue grow from a small emerging concept into a&nbsp;<a href="https://1851franchise.com/trubluehomeserviceally/trublue-accelerates-growth-in-2025-with-record-breaking-midyear-momentum-2730055">nationally recognized brand</a>. But for them, the most important growth has been personal — and local.“Hopefully, we have built a business that either one of our sons would be proud to carry on in the future,” Kay said. “Our client base is strong because we provide our customers with a good service, at a great value and it is continually growing.”The couple takes special pride in supporting local seniors, veterans and busy families. “Making our customers and employees happy and doing something good within our community for our seniors and veterans has been the most rewarding,” Kay said. “As a veteran and family-owned business, we take great pride in providing a service to those who have served our country and to their families. For our seniors and busy adults, providing them with peace of mind and someone they can trust in their homes is a very big deal to us as a company and as a family. Everyone’s home is their castle, and we always hope TruBlue of Yorktown makes them feel that way.”<h2>The Rewards of Working Together</h2>When asked about the hardest or most surprising part of running a family business, Kay didn’t hesitate: “Probably how easy it has been to work together. Nothing has been hard about it for us personally. Our skill sets matched pretty good.”For Tim and Kay, the past decade has been defined by collaboration, connection and community — and the next one promises more of the same.“Overall, everything we dreamed about running our own business has come true,” Tim said. “This is a great way of life.”

Discover how Tim and Kay Diemont leveraged their personal partnership to create a thriving, lasting legacy in the home maintenance franchise space.

Why This Couple Left Corporate America to Build a Community-Focused TruBlue Business in the Town Where They Raised Their Sons

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