If the franchise requires a physical location like a storefront, warehouse, office building, then the franchise owner may be responsible for finding, leasing, and setting it up. This is a heavy lift but once everything is set up, the job transitions towards maintaining the property like any other business would.
Full Answer
What is the role of a franchise owner?
Some franchise owners choose to take an active role, and will work alongside their employees, while at the same time managing the business. Other franchise owners own more than one franchise and visit each of their locations on a regular basis to make sure things are running smoothly.
Why buy a buying franchise?
Buying a franchise establishes a relationship with the successful business (the franchisor), provides on-going brand awareness, and gives the franchise owner a proven system to work with. The business may be co-owned by the umbrella company and the franchise owner, or independently-owned.
Where is the best place to start a career as franchise owner?
Some places are better than others when it comes to starting a career as a Franchise Owner. The best states for people in this position are California, New Jersey, New York, and New Mexico.
What is a franchisee?
A franchise typically involves the granting by one party (franchisor) to another party (franchisee) the right to carry on a particular name or trade mark, according to an identified system. Franchises are usually located within a territory or at one specific location, for an agreed upon term.
What do I need to consider?
There is a host of factors to consider when selecting a franchise location. These include:
Will my franchisor help me choose a site?
Most franchisors offer support in site selection, but this help usually won’t occur until you’ve made a firm commitment to opening a franchise unit.
Does my lender get a say?
If you’re using bank financing to cover any portion of your startup costs, you should share your proposed location with your lending officer before making an offer. This is especially important if you plan to use their funds to buy land, acquire a building, or make renovations.
Who else should I talk to before making a selection?
Numerous other people can offer valuable insight as you search for a franchise location. These include:
Your real estate agent
Your real estate agent may know about properties soon to hit the market, and they may help you make sense of the turnover that’s taken place at any site you consider. Further, they can advise you on how to position an offer in light of local economic conditions.
Local real estate developers
Local real estate developers can be an invaluable source of information. Major developers in your area will know of commercial developments in the works that may fit your criteria, and they’ll be able to tell you about the availability they have in their existing developments.
Local zoning and planning boards
Your city’s zoning and planning boards may be able to help in two ways. First, they can share information on the sites of future and existing developments in your territory, which may include sites that haven’t been on your radar.
What is a Franchise Owner?
Franchise owners are entrepreneurial-minded, but rather than spending time developing a business plan and a brand, they purchase a franchise that grants them the rights to own and operate a company using a franchise organization’s name and business plan.
How do Franchise Owners Get Paid?
Like any small business owner, franchise owners get paid when their company generates revenue. However, the reality is more complex. For a company to turn a profit, their revenue must exceed any overhead costs they have. These may include:
What does it Take to Become a Franchise Owner?
So, what does one have to do to become a franchise owner? No matter what type of franchise you are looking to purchase, the requirements to start a franchise are generally the same. These are the most important steps:
Is Owning a Franchise Worth it?
Ultimately, it’s up to the would-be franchisee to determine if owning a franchise is worth it. The best way to answer this question is to calculate the costs and weigh the pros and cons. Here are some actions to take when deciding to purchase a franchise:
How much does a franchise owner make an hour?
There is more than meets the eye when it comes to being a franchise owner. For example, did you know that they make an average of $24.35 an hour? That's $50,646 a year!
What are the best states to start a franchise business?
The best states for people in this position are Rhode Island, Illinois, Pennsylvania, and New York. Franchise owners make the most in Rhode Island with an average salary of $73,161. Whereas in Illinois and Pennsylvania, they would average $65,874 and $65,020, respectively. While franchise owners would only make an average of $64,768 in New York , you would still make more there than in the rest of the country. We determined these as the best states based on job availability and pay. By finding the median salary, cost of living, and using the Bureau of Labor Statistics' Location Quotient, we narrowed down our list of states to these four.
What skills do franchise owners need?
We discovered that a lot of resumes listed communication skills, leadership skills and management skills.
How many franchise owners have a bachelor's degree?
If you're interested in becoming a franchise owner, one of the first things to consider is how much education you need. We've determined that 62.4% of franchise owners have a bachelor's degree. In terms of higher education levels, we found that 9.4% of franchise owners have master's degrees. Even though most franchise owners have a college degree, it's possible to become one with only a high school degree or GED.
What is location quotient?
Location Quotient is a measure used by the Bureau of Labor Statistics (BLS) to determine how concentrated a certain industry is in a single state compared to the nation as a whole. You can read more about how BLS calculates location quotients here
Who is responsible for setting up a franchise?
If the franchise requires a physical location like a storefront, warehouse, office building, then the franchise owner may be responsible for finding, leasing, and setting it up. This is a heavy lift but once everything is set up, the job transitions towards maintaining the property like any other business would.
How do franchise owners get paid?
Franchise owners experience business ownership, but without the upfront work it takes to develop a brand, reputation, and a product with a good track record. This is why franchising is a popular option for individuals looking to own a business.
What is the relationship between a franchisee and a franchisor?
The relationship between franchisee and franchisor is, at its most essential, a business partnership. In order to maintain that partnership and the rights to the franchise model, franchise owners are responsible for paying initial startup costs and ongoing franchise fees.
What is the percentage fee for franchises?
Percent fees are based on total gross sales, and are usually between 5 - 9%. If a franchise’s total monthly gross sales income was $10,000 and the contract states a 6% fee, then the fees for that month would equal $600.
When was Franchise.com founded?
A Trusted Industry Leader Since 1995. Founded in 1995, Franchise.com was one of the first franchise recruitment websites in the world. Today, we continue to be the 'go to' place for people beginning their business opportunity search and the journey of franchise ownership as well as for those already involved in the world of franchising.
Is overhead considered profit?
These overhead costs and franchise fees are generally baked into the final total selling prices for products and services rendered. Any left over is considered profit. That profit is often what franchise owners will take home, or use to invest further into the business.
Does franchising come down to the owner?
In the end, the success of a franchise comes down to the owner. At times, that may mean wearing several different occupational hats at any point. The responsibility not only impacts your relationship with your franchisor, but also with your personal needs and wants. You're not just working for a paycheck anymore, but doing your best to make the business work for your lifestyle. The more you put in, the more potential you have to get back.
What are some interesting jobs to do as a franchise owner?
For that reason, we discovered some other jobs that you may find appealing. Some jobs you might find interesting include a general manager of operations, general manager/partner, business manager, and general manager.
How much does a franchise owner make in 2028?
What's more, is that the projected number of opportunities that are predicted to become available for a franchise owner by 2028 is 150,600. A franchise owner annual salary averages $50,646, which breaks down to $24.35 an hour. However, franchise owners can earn anywhere from upwards of $43,000 to $58,000 a year.
What are the skills required to be a franchise owner?
These skills include "customer service," "payroll," and "customer base.
What is the difference between a franchise owner and a general manager?
A franchise owner responsibility is more likely to require skills like "own business," "new franchise," "franchise partners," and "business management.". Whereas a general manager of operations requires skills like "facility," "ensure compliance," "procedures," and "logistics.".
Do franchise owners have to go to college?
In fact, our research shows that one out of every six franchise owners were not college graduates. Those franchise owners who do attend college, typically earn either business degrees or accounting degrees. Less commonly earned degrees for franchise owners include marketing degrees or management degrees.
Why is it important to maintain the standards of a franchise?
These standards can often be strict because the franchisor wants to be sure each franchise lives up to the brand. One poorly run franchise can hurt the reputation of the entire franchise. This is why maintaining these standards is one of the primary duties of a franchise owner.
What does it mean to own a franchise?
Owning a franchise means financial freedom and being your own boss , but it doesn't come easy. It involves hard work and a lot of determination to ensure the franchise is a success. If you're ready to take on the challenge of owning a franchise, start your franchise search for the perfect franchise opportunity with All USA Franchises. At All USA Franchises, our goal is to bring together potential franchise investors, franchisees, and franchisors in a single place, making it easy for all parties involved to build and develop a great business relationship. There is no charge for this service, which means complete access to all of the opportunities available. Since franchisees never pay a fee to have their franchise opportunities listed, investors and those looking for a franchise to buy will have access to all of the franchises available, not just to those who pay a fee to be seen.
What are the responsibilities of a franchise owner?
Business Tasks: Calculating the royalties that need to be paid to the franchisor, making sure all appropriate paperwork is filled out and submitted to the franchisor, and ensuring that the franchise is maintaining profitability are primary responsibilities of a franchise owner. The franchise owner will also spend a great deal of time making sure the franchise is operating as it should and finding ways to fix issues as they arise. If a franchise owner owns more than one franchise, these tasks will increase dramatically. Some franchise owners will come into the franchise every day, working right alongside employees, while others will divide their time working on site and away from the business.
What is the difference between a franchise investor and a franchise owner?
There is a distinction between a franchise investor and a franchise owner, though there is some crossover in the duties the two perform. A franchise investor typically has several franchises and hires people to operate and handle the day-to-day activities of each of those franchises. The franchise owner, on the other hand, is involved in those operations extensively, often to the point of coming in to help run the business daily.
Why do franchise owners hire managers?
Hiring and Training: While many franchise owners hire managers to handle the hiring and firing of employees, some will personally handle these tasks as a means of better controlling the quality and consistency of the employees and the service.
What is the process behind maintaining brand integrity?
Customer Service: This is part of the process behind maintaining brand integrity. Happy customers keep the brand's reputation intact. Dissatisfied customers can hurt the brand. The franchise owner spends a lot of time making sure the customers are getting products and services that meet the standards of the franchise.
How much does a Chil Fil franchise cost?
The franchise fee for one Chil fil A franchise is only $10,000. That’s unheard of in franchising. The average franchise fee hovers around $30,000 these days-which is not a lot of money for what you get. ( See above)
What is franchising world?
Franchising is a world full of ideas, determination, grand plans and big dreams. On the flip side, it’s also a world that includes disappointments and failures ( unfortunately ). Simultaneously, franchising it’s a world of fresh starts. A forward-looking world where people fire their bosses in order to be the boss.
How does franchising affect the economy?
Franchising: Economic Impact. Franchising-as an industry, makes a huge impact on the U.S. economy. ( Other countries like England, The Philippines, South Africa, New Zealand, and even the continent of Australia, benefit tremendously, economically, from franchising.) From The International Franchise Association:
What to expect when buying into a franchise?
Another thing you’re getting when you buy into a franchise system is their business experience. That’s a huge thing to have behind you as you start your business. The franchisor has already ( hopefully) made the mistakes. They’re the mistakes you don’t ever have to make. It’s a nice way to get into business. Making no mistakes-or at least less mistakes-because they’ve been made already, saves a lot of time and a lot of money. It’s why a lot of people who want to be the boss look into investing in a franchise.
How to get a team together?
One way to get an entire “ team ” together ( if you feel you have a good shot at success with your idea) is to hire a franchise development firm. But, not all of them are created equal.
What happens when a franchise opens?
Simply stated, even before a franchise business opens in an area, several things are set in motion that contribute to the local economy. And once someone signs a franchise agreement and opens the business, some of the benefits to the local area remain in place.
What happens if you own a food franchise?
If you own a food franchise, and you purchase let’s say, milk, you will have purchasing power. The power that comes with being part of a network. A franchise network. Independent businesses in your area won’t be able to touch the price you pay for milk. That’s because they’re buying a case of milk a month, while you ( the franchise network) is buying 100 cases. Big difference. It’s a powerful advantage of franchise ownership.
What are the aspects of franchise ownership?
You will consider many aspects of franchise ownership: investments, loans, fees, industry, location. Time is yet another aspect that plays a big role. Ask yourself a few questions that impact the hours you are willing to invest:
How many days a week does a carpet cleaning franchise operate?
Based on the franchise you choose, you will have an idea of the time commitment based on the industry. For example, a carpet cleaning franchise could choose to operate only four days a week instead of seven (if OK with the franchisor). Or a child-care service might only be open on weekday afternoons after school.
