How Much Do Franchise Owners Make? Here’s How You Find Out

June 17, 2024

Cutting ties with a regular paycheck is one of the hardest parts of launching a franchise.

How much do franchise owners make? It should be no surprise that the answer varies widely, but by researching publicly available information, you can get a clearer picture of potential earnings.

How do franchise owners get paid? Franchise owners typically earn income through the net profit of their business. A franchise’s income is the remainder after expenses — such as franchise fees, staff salaries, and operational costs — are deducted from the total revenue. The more efficiently you manage your expenses and drive sales, the higher your potential earnings. It’s important to remember the average small business takes at least two to three years to achieve profitability, according to GoBankingRates.

A franchise business owner’s income depends on factors like the industry, location, and the entrepreneur’s business acumen. Some franchise owners might earn a modest income, while others generate substantial profits. Glassdoor estimates the average salary for a business owner, which includes franchisees, is between $115,000 to $215,000.

Finding Out What Franchise Owners Make

To understand what franchise owners for a particular brand make, the franchise disclosure document (FDD) is an invaluable resource. The FDD is a legal document franchisors must provide to prospective franchisees. It contains detailed financial information and may include the financial performance of some existing franchise units.

The FDD can be complex, but Item 19 covers the financial performance representations. In this section you may see data on average sales, expenses, and, in some cases, net profits of franchise units. It's important to note that these figures are typically averages or ranges of a select number of locations and your actual earnings can vary.

Funding Your Franchise

Many franchises have the tools in place to help make franchising attainable for people getting started on their entrepreneurial journey. They partner with lenders or offer in-house financing to help new owners get started. Franchise owners often use a combination of personal savings, loans, and other financing methods to fund their business. It's essential to have a solid financial plan in place, balancing your investment with potential loans to minimize risk while ensuring adequate capital for business growth.

Creative Colors International: A Profitable Franchise Option

If you’re interested in a franchise with the potential for high returns, Creative Colors International (CCI) presents an attractive option. We’re the mobile leader in leather and vinyl restoration with approximately 73 locations in the U.S. and Canada and 150+ mobile vans. Our competitive advantage lies in our specialized services, which are often less susceptible to economic downturns, making us a recession-resistant business.

The initial investment to start a CCI business in your community is $101,380 to $121,911. Partnering with us enables you to take advantage of a proven business model with a track record of success, reducing the risk for new franchisees. From training to marketing, we provide extensive support to our franchisees, helping them maximize their business potential. Our comprehensive support helps franchisees establish their business and start generating revenue. 

Get Started with CCI

How much do franchise business owners make? The answer is up to you. Take the first step and request franchise information to learn how you can take charge of your future and write your own success story with CCI.