What’s the Average Franchise Profit Percent You Can Make?

leadership numbers profit Dec 01, 2021

Franchisees often compare their unit’s performance with others within the franchise network and the industry, to know where they are versus where they should be and if they are reaching the average franchise profit percent in the market. This comparison may help them determine how to scale their organizations.

But, is there an average profit that franchise investors can expect? What needs to happen to achieve that, considering that not everybody does? That’s what we are going to uncover in this blog post.

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The average franchise profit percent will depend largely on your average sales, which can vary anywhere between 400,000 to 1.4 thousand a year for the traditional brick and mortar franchises. How much you achieve will be determined by the type of franchise you have.

Let me point out that I’m referring to...

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How to avoid the franchisee struggle

You were excited about investing your savings into a franchise so that you could have the financial and time freedom you have wished. Even though you didn’t have experience, you thought that buying a franchise would give you everything you needed to be successful. But then, you open your first unit and the struggle begins. Sounds familiar?

Running a franchise is not as easy as many people think. After my 30 plus years of experience in this industry, I have detected the three most common reasons why franchisees struggle with their business, listed above from bad to worse. 

If you are about to invest in a franchise, take note of these topics to avoid conflict. If you are already finding it difficult, follow my recommendations to ease the pain.

Reason #3: The wrong franchise

There are different levels and types of franchisees. I categorize them in:

  • Startup franchises. These are the ones that have a handful of units and feel ready to start selling the rights for their brand....
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Protect Your Eroding Bottom Line

(Part 4 of the Multi-unit Franchising Conference)

I enjoy attending franchise events to learn from successful franchisees and brand executives. I recently went to the Multi-Unit Franchising Conference 2021, and in this post, I’m sharing my notes and perspective on the session titled Operations Track: Protect Your Eroding Bottom Line.

Watch the whole Multi-Unit Conference series subscribing to our YouTube Channel and registering at the bottom of this post to get a notification on when the rest of the post gets published.

This was a panel of four franchises from different industries that shared their thoughts and experiences on how to maximize profitability and maintain quality at all your stores. They focused on three main topics: product cost, technology, rent, and labor cost.

  1. Product cost

How to face the increasing cost? The panel agreed that you have to have the courage to increase prices to the point that you have your variable cost where they need to be so you can have ...

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