Franchising opens the door to entrepreneurship with promising profit potential. Your income isn’t only based on sales―revenue, expenses, and other key factors can impact your take-home pay. Ready to find out what franchise owner earnings are possible? Let us explain the details.
Breakdown of Franchise Owner Earnings
Franchise owners do not get a salary like traditional employees, although some franchise owners may structure their income as a salary for tax or operational purposes. Typically, franchisees receive distributions from their business’s profits.
Franchise owner salary can be calculated by subtracting your total revenue from your expenses— but that is not the full story. Here is what impacts a franchisee’s earnings:
- Revenue: Sales are directly tied to how much money you make as a franchisee, which can depend on your location, demand, and the effectiveness of your marketing. If your franchise is in a high-traffic area or a region with strong demand for your product or service, you are more likely to generate higher sales. But, if you are in a less lucrative market or struggling to attract customers, revenue can be lower and dent your earnings.
- Operating expenses: Franchise owners have both fixed and variable costs that chip away at their profits. Fixed costs include expenses like rent and utilities, which you must pay regardless of how well your franchise is doing. Variable costs, such as payroll, inventory, and supplies, can fluctuate based on business performance.
- Franchise fees: A franchisee must also pay franchise fees for the right to use a brand’s name and operational playbook. Fees are typically a percentage of your gross revenue. Most franchises also have a marketing fee to help promote the brand.
- Market trends: Market trends and local competition can also impact your earnings. A highly competitive market or an economic downturn could reduce your sales potential.
- Growth strategy: Savvy business owners reinvest in their businesses to foster growth. It may limit your short-term earnings but increase your potential for long-term success.
How Much Does the Average Franchise Owner Earn?
Franchise owner earnings hinge on brand reputation, location, and operational efficiency and can vary widely between other owners in the system. Your initial investment and the length of time it takes to generate a profit will impact your earnings.
According to Franchise Business , the average annual income of a single-unit franchisee was close to $102,000. The average annual income of franchise owners with two to four locations was more than $142,000.
To determine how much you could earn with a specific franchise, crunch the numbers. Often, the earnings data of top performers can be found in the franchise disclosure document (FDD). Franchisors are required to provide franchise candidates with an FDD, which also outlines the franchise agreement. Having conversations with existing and former franchisees can offer valuable insights.
It is also important to pay attention to your local market. Is there a demand for the franchise’s products and services in your area? The type of industry—whether it is food, fitness, home services, or staffing—needs to align with demand in your market. Lack of demand will hamper your earnings potential.
Choose AtWork: A Strong ROI Franchise
AtWork can deliver strong franchise owner earnings. The high-demand staffing industry provides essential workforce solutions to businesses across various sectors. With decades of experience, AtWork has developed a proven system that helps franchisees efficiently manage operations, attract clients, and build a reliable team of professionals. In 2023, AtWork franchise owners averaged gross profits of more than $726,000.*
“The most exciting thing about opening my AtWork franchise is that I get to contribute positively to my community. I can help others find jobs and place them where they can achieve their goals,” said Ashley Russell, an AtWork franchisee in Florida. “If you are on the fence about whether you should do this or not—do it.”
Here is what makes AtWork stand out as a profitable franchise opportunity and one of the best roi franchises:
- Industry demand: Demand for staffing services is strong. Businesses turn to staffing providers to navigate workforce shortages, provide seasonal staffing solutions, and specialized hiring services. The number of U.S. temporary jobs increased by 5,300 in December to 2.66 million, the Bureau of Labor Statistics reports.
- Multiple revenue streams: AtWork offers diverse staffing solutions, including temporary, temp-to-hire, and direct-hire placements. Its diverse services enable franchisees to serve a wide range of clients and tap into various income opportunities.
- Comprehensive training: AtWork provides extensive training, marketing assistance, and ongoing support, giving franchisees the tools they need to run a successful business and focus on growth.
- Recession-resilient sector: The staffing industry can perform well even during economic downturns when businesses rely on staffing agencies to provide flexible hiring solutions.
- Tax credits: AtWork separates itself from the competition by enabling franchisees to take advantage of tax credits to increase earnings potential.
- Back-office support: AtWork’s accounting team handles payroll processing, client payment processing, garnishment management, tax filing, payments, and more.
Choose a Staffing Franchise Leader
As you explore the profit potential of franchising, consider how you can make AtWork work for you. Get started to learn more about building a future in the staffing industry with a trusted partner.
*See FDD for details.
