More entrepreneurs are turning to franchising to skip the startup guesswork. The number of franchises in the U.S. is expected to grow by 2.5%, to 851,000 total units in 2025. To determine if franchising fits your goals and lifestyle, learn how franchises work, including more about the benefits of the franchise business model.

What is Franchising?

Franchising provides a proven recipe for running a business instead of starting from scratch. A franchise is a licensed agreement to operate a business using a company’s name, branding, and systems. The franchisor owns the brand, and the franchisee runs the local unit. Franchising spans nearly every industry, including food, home services, fitness, senior care, and more. U.S. franchises are expected to generate $936.4 billion this year.

For someone with an entrepreneurial mindset, franchising offers lower risk and faster start-up time than starting a business alone. It’s an ideal path for a person interested in following a structured system with training and ongoing guidance.

Pros and Cons of the Franchise Business Model

Now that you know how franchises work, you can better evaluate if this path is a good choice for you. Like any new venture, there are advantages and disadvantages to opening a franchise. Explore the pros and cons to see if it will help you achieve your career goals.

PROS:

  • Proven business model
  • Ongoing training and support
  • Built-in brand awareness
  • Easier access to financing

CONS:

  • Initial fees and royalties
  • Less creative freedom
  • Must follow franchisor rules and systems
  • Territory restrictions

How Do Franchise Owners Get Paid?

Franchise owners don’t get a salary from the franchisor. Similar to starting a business from scratch, franchisees take a share of the profits as their salary. After paying expenses, such as payroll, rent, supplies, and fees, the remainder of the net profits belong to the owner. You’ll have the opportunity to reinvest your profits to add locations and territories.

Franchise earnings vary widely based on brand, location, and execution. High-performing franchisees can earn six figures or more annually. The average annual return on investment (ROI) for some franchises can be as high as 25%, according to Franchise Business Review.

Remodel Your Future with Kitchen Tune-Up

A home remodeling franchise can be lucrative with low overhead and high ROI. The average sales for 79 single-territory Kitchen Tune-Up locations were $479,767 in 2024.*

At least 82% of all buyers consider a home purchase a good financial investment, including 86% of young millennials, according to the National Association of Realtors. With millennials recently surpassing baby boomers as the largest group of home buyers at 38%, demand for home renovation is poised to climb. The home remodeling market is on track to generate $526 billion by the first quarter of 2026. 

Kitchen Tune-Up franchisees specialize in full-scale, custom remodels and affordable kitchen updates. In addition to a proven concept, Kitchen Tune-Up franchisees receive:

  • Protected territories
  • Turnkey local area marketing toolkits for lead generation
  • National brand recognition
  • Comprehensive training and ongoing support

Plus, Kitchen Tune-Up can be run as a home-based business or retail location, and is backed by the parent company, Home Franchise Concepts, a leading franchise system in the home services industry.

How to Get Started

Inquire now to learn more about owning a remodeling business with Kitchen Tune-Up.

*See Franchise Disclosure Document for details.

Explore The Next Steps

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