Franchise Income: What New Owners Can Expect to Earn

If you’re thinking about opening a franchise, you’re likely to wonder what your franchise income could be. Let’s take a closer look at franchise income factors and how you can increase your profitability potential with the right franchise partner.

What Do Franchise Owner Earnings Look Like?

Franchising can be quite lucrative, with franchisees in some industries reporting an annual average franchise income of $130,000. Your franchise’s gross profits will depend on several factors, not all of which are controllable. Although it’s hard to say what any individual franchisee will make, your franchisor will share helpful information about what’s possible.

During the franchise process, you’ll receive a copy of their Franchise Disclosure Document, or FDD. One of the FDD’s items, Item 19, may share earning claims for the system. This generally includes sales breakdowns, gross sales, and average unit volume. The figures may be broken down into performance tiers, often by quartile.

It’s important to keep in mind that you won’t get to keep 100% of your gross profits. Elsewhere in the FDD, you’ll find an accounting of your initial franchise investment, as well as the recurring fees you’ll be responsible for throughout the life of your franchise.

• Item 6 includes a list of the fees and royalties specific to your franchisor. At minimum, you can expect a royalty and a marketing fee or fund. These fees allow the franchisor to support you through marketing, technology, and research.
• Item 7 includes a breakdown of your initial investment, covering the expenses associated with starting and running your franchise. This information usually comes in the form of a chart and is presented in a low-to-high range.

This level of financial transparency makes it simpler to budget and plan for all contingencies.

Understanding Your Take-Home Pay

Aside from franchise fees, a franchise owner’s take-home pay is much the same as it is for other business owners. The biggest decision will be whether you take an owner’s draw or a salary.

• Owners who take the owner’s draw pay themselves from the company’s account, making it contingent on profits. The owner’s draw is tax-free, so you’ll need to account for paying self-employment taxes when you file your return. Though it may be hard not to receive a steady paycheck, having more flexibility to cut your pay if profits are low can be helpful.
• Owners who take a salary receive a regular paycheck with the same federal, state, Medicare, and Social Security taxes removed as other employees. Salaried owners receive a steady paycheck, but it can be more difficult to cut your pay if needed to keep the business in good financial shape.

Setting Franchise Profit Expectations

Being realistic about your franchise income from the outset is key. There’s no way to know for sure when you’ll break even or become profitable, especially since you’re likely to experience lower growth and higher expenses during your first years in business. Don’t be discouraged if growth is slower than you hoped; sticking to your franchisor’s systems and processes will help keep you on the path to profitability. If you’re concerned about a lack of growth or meeting your KPIs becomes a challenge, take advantage of any mentorship or coaching resources your franchisor provides. Your success is their success, and they’ve got your back.

How can I increase franchise revenue potential?

Fortunately, many of the factors that help increase profits are well under your control. Choosing a franchise is a great start! Your franchisor’s business model has been perfected over time and is proven to be profitable in all kinds of settings.

All franchisors provide some support and resources, but leading opportunities like Kitchen Tune-Up offer:

• Business coaching and goal-setting assistance
• National and local advertising initiatives
• Networking opportunities within the franchise system
• Initial and ongoing training
• Industry expertise
• Continuous technological innovation

As you’re deciding on a franchise investment, it’s also a good idea to keep the following variables top of mind:

• The cost of opening a business relies more on where the business is located than you may realize. Even though choosing a business that can be operated from home will help you save money on real estate, operating in a high cost-of-living area can still lead to higher overall expenses over time. Let your franchisor know what kind of flexibility you have in where you open your business. They’ll help you determine the best territory for your goals.
• Brand reputation. While franchising offers much in the way of brand awareness, you want to be sure their reputation is positive. Do careful research about each franchise you consider. Customers are more likely to try a new business if they’ve heard good things, making it possible to grow your business faster.
• Franchise opportunities in the home services industry, of which Kitchen Tune-Up is a part, have a deserved reputation for being stable, resilient, and profitable. Home services are always needed; in fact, demand for these services remain steady even when consumers are spending less. According to the National Association of Home Builders, home improvement spending share reached 44% in 2025, with a 3% increase in remodeling activity expected in 2026.

Your Opportunity with Kitchen Tune-Up

Kitchen remodeling is a smart investment, right now. The 2026 Houzz Renovation Plans Report notes that 91% of homeowners plan to follow through with their remodeling plans and 93% intend to work with professionals. Of those homeowners, a third are planning to work with kitchen designers. Houzz also found that the median spend for kitchen remodeling projects ranges from $20,000 to $50,000. Partnering with a leader like Kitchen Tune-Up is the best way to take advantage of this market.

With Kitchen Tune-Up, you’ll benefit from instant recognition and trust, aiding in quicker customer acquisition. The potential for high franchise income, coupled with world-class support and training, makes it the ideal option for new entrepreneurs and seasoned investors alike. As part of the industry-leading Home Franchise Concepts family of brands, we know what it takes to help you succeed.

Ready to seize your opportunity in the kitchen remodeling industry? Inquire now, and one of our franchise advisors will be in touch with more information.