How Much Do Franchise Owners Make? The Answer May Surprise You

How much do franchise owners make? Spoiler alert: it’s not a one-size-fits-all answer. Whether you’re dreaming of brewing lattes or focusing on home renovation, here’s what every potential franchisee needs to know to achieve a bright future as an entrepreneur.

Is Owning a Franchise Profitable?

If you're aiming for financial freedom and independence as a business owner, franchising provides a proven route to success. This business model enables you to open a recognized brand with operational guidelines, training, and ongoing support. You’ll get a turnkey business and join a system of like-minded entrepreneurs invested in your success. How much do franchise owners make? A study by Franchise Business Review found that franchisees who have been operating for at least two years earn an average annual income exceeding $142,000. And 85% “enjoy operating their franchise.”

While franchising can be lucrative, outcomes vary significantly depending on the brand, industry, and location. Conducting thorough research and financial planning is essential. The franchise disclosure document (FDD) can provide insights into the financial performance of a brand.

The key factors influencing how much franchise owners make include:

• Franchise revenue: The total income from sales or services.
• Operating costs: Expenses such as rent, labor, supplies, and utilities.
• Franchise investment: The initial investment, ongoing royalties, and marketing contributions are paid to the franchisor.
• Market conditions: Demand, competition, and economic factors. Having multiple revenue streams, such as providing services to both residential and commercial customers, can help decrease the impact of a dip in the economy. Other franchises, like cleaning providers, rely on recurring revenue by securing long-term contracts.
• Owner involvement: The time and effort invested by the franchisee in managing the business. Franchisees don’t need experience in the industry to be successful. All you need is a passion for customer service, an eye for detail, and good people management skills.

What to Consider Before Investing in a Franchise

Before investing in a franchise, you must evaluate your goals and financial resources. Franchising requires following a proven system. Are you willing to follow the franchisor’s guidelines? Training and continuing guidance require ongoing fees, and the success of your location hinges on the reputation of the brand.

To determine if franchising is right for you, consult with current franchisees to get first-hand knowledge about the brand and its performance. Carefully research the industry and analyze the competition to ensure the franchise aligns with your availability and energy.

Home Services: A High-Profit Potential Franchise

The home services industry is thriving, with a positive outlook for sustained growth and profitability and it offers countless opportunities for savvy entrepreneurs to excel. In 2023, the average American household spent nearly $14,000 on home services, including home maintenance, emergency services, and home improvement. Home improvements and maintenance are projected to grow from $472 billion to $477 billion through the third quarter of 2025, according to the Joint Center for Housing Studies of Harvard University. And many homeowners have projects in the pipeline. Over the next five years, Angi forecasts that 37% of homeowners plan to do a bathroom or a kitchen remodel, and 32% plan to do an outdoor makeover. Other common projects are painting, installing new flooring, and adding new appliances.

“Stronger gains in home values and thus home equity levels should boost both discretionary and ‘need-to-do’ replacement projects for owners,” said Carlos Martín, director of Harvard’s remodeling futures program, in a statement. 

Remodel Your Future with Kitchen Tune-Up

Kitchen Tune-Up strives to provide customers with a no-hassle, fun experience. We offer services ranging from original tune-ups that restore wood cabinets to like-new conditions, to a full-scale remodel.

Our franchisees take advantage of:

• Group buying power: With more than 270 locations, we can negotiate lower supply costs for our franchisees, and you benefit from those discounts, passing savings along to your customers.
• Robust training: Every new franchise owner receives four weeks of online pre-training and 14 days of virtual and in-person training. We help you formulate a 12-week post-training action plan, and you’ll be assigned a launch coach to provide support for your first three to seven months.
• First-class technology: Our 3D design tool enables customers to envision their new space. They can pick and choose different colors and styles.
• Secure territory: Each Kitchen Tune-Up territory has an average population of 260,000 and a minimum of 41,000 single-family homes. Plus, you can also work any unsold, open territory surrounding yours.
• Flexible opportunity: About 70% of our franchisees conduct business from a home office, while the rest choose to open a showroom. You can have a full retail center or space with a smaller footprint. A home-based business cuts down on overhead costs and can give you the work-life balance you desire.
• Strong parent company: Kitchen Tune-Up is one of Home Franchise Concepts’ ten home services brands. Home Franchise Concepts has more than 2,600 franchise territories and more than 30 years of experience in the industry. Its leadership provides valuable market research, industry trends, and best practices, helping franchisees stay competitive and adapt to changes in the home improvement landscape.

Get Started Today!

Inquire now to learn more about the home services industry and partnering with Kitchen Tune-Up to launch a successful business in your community.