There is no denying that franchises are one of the most popular paths to entrepreneurship for new business owners and also previous business owners, but many do not understand how much money you can make from investing in a franchise and becoming a new franchisee. Today we will cover the kind of money you can expect to make from a franchise as long as you put in the hard work using data collected from franchising surveys in recent years.
The data behind franchise ownership
Although understanding how much money you can make from running a franchise is an important question, it is heavily dependent on the franchise you choose to invest in. Of course, some franchises are more profitable than others. It is essential to understand that not all franchise opportunities are created equal, some will be a more profitable opportunity than others, and the question of how much do franchise owners make is purely situational. However, in this article, we will share the most recent statistics collected by Franchise Business Reviews’ recent survey to help you understand how much money you can expect to make as a franchisee.
According to Franchise Business Review, in the recent survey they did on the food & beverage sector, their research found that 37% of franchisees earned less than $50,000 a year, and just 16% of the top performers earned more than $200,000 a year, of course, these numbers will fluctuate depending on which industry you start your franchise business in as some industries will be more lucrative than others.
What do these numbers tell us?
Overall these numbers show a food and beverage franchise can be a very profitable franchise business opportunity as long as you work hard and become a top performer or take full advantage of the support from your franchises network since there is no real reason why a franchise business should fail as long as they are getting good support and the franchisee operating the day to day operations for that franchise location is working hard.
How to get a clearer idea of how much money you will make as a franchisee?
The statistics above have been taken in the United States, so you may be wondering how can I use these to learn how much profit I could make from a franchise in the UK? The best way to do this would be to calculate the average earnings from these statistics listed above and also ask your potential franchisor before investing in a franchise for earnings projections and deduct the total franchise costs from those projections. This should help you get a good idea about how much money you can make as a franchisee in that particular franchise in your first few years running the business.
Suppose you want to find out the average salary you can expect when running a franchise in the UK instead of working this out with a potential franchisor from earnings projections. In that case, we recommend you to check out the average salary calculated by Glassdoor, which was found to be £48,000 a year. Remember, this average was calculated by several different franchises earnings in a vast and diverse range of industries.
Patience is key
If you want to make your franchise business a success, you will have to play the long game. Remember, franchise businesses do tend to generate revenue quicker than small businesses without a trusted brand names backing, but it’s essential to understand that with any business investment, it will take time to earn a high income and become a top performer for a specific franchise especially when you are a new franchisee this is why it is vital you continually reach out to your franchisor when support is needed since a franchisor can only help you after initial training if you let them know the problems you might be having this is why when you buy a franchise making use of that support resource is one of the keys to becoming a successful franchisee.
The bottom line
Becoming a franchisee is a much easier way to get into business, and franchises are known to have much higher success rates, but making a franchise business successful is always going to require hard work, just like any business venture you decide to start. If you want to learn more about the advantages that come with franchise ownership, we recommend you read previous articles at Franchise UK today to find out why franchises can be an excellent investment for previous and first-time business owners.