It’s a good question, and I get asked it all the time. Hundreds of variables will change the calculation, but the short answer is… as much as you want.
According to a 2024 survey from Franchise Business Review, the average annual income for a franchise owner with a business open for 2–10 years is $130,000, and $177,240 for businesses open for more than ten years. Those figures represent full-time ownership and an established brand. Other franchise concepts only require part-time ownership involvement and pay around $39,000.
To get a realistic picture of how much money you can earn, you first have to understand the franchise model.
After you demonstrate your interest in ownership and the franchisor decides it’s interested in you, you’ll move on to a discovery day. This is a common term for visiting the franchisor at one of their locations and learning more about what the business is all about. You’ll leave with a clear understanding of what a day in the life of an owner and the staff is like.
This is a key step in determining whether this company is a good fit for you and if you can commit to the work it will take to become successful. If it’s not a good fit, chances are you’ll have a harder time making it to the top tier of earners. That’s why my coaching model includes careful analysis of how and how much you want to work in your business.
Franchises are normally sold within a market or territory. Market size can be determined in several ways: by city, county, zip code, radius, or other geographic factors. You usually have the option to decide how large this area is, and the franchise fees scale up as you expand your “protected territory.” I encourage clients to develop a clear vision of their financial goals so we can make sure your trading area has the potential to not only replace your income, but also leave plenty of room to exceed the income you’re used to.
Your decisions at this point are a significant factor in how much you’ll be able to earn. It’s a pretty straightforward equation of risk and reward. Buying a minimal territory (for a minimal cost) is possible, but the small market will also limit your income potential. You can always try to expand your territory later, if it’s still available, but you might find yourself in a situation where the territory is sold to someone else, locking you out of any expansion in your area.
How much you can earn in a franchise then, like any other business opportunity, largely depends on your appetite for risk and how long you are willing to work to get to your Return on Investment (ROI).
The good news for you is that whatever brand or size territory you choose, the risk of failing in owning a franchise has largely been mitigated. That’s why business owners, especially first-time owners, love franchises. You’re buying into a proven business model that works across geographic and demographic lines, a recognized brand with corporate marketing support, a well-defined audience and product offerings, and clear operational guidelines and business goals.
After that, it’s all up to you. If I can help you determine which franchise would be the best fit for you, The first step would be to present you with options that match your interests and goals.
Whatthefranchise is a Strategic franchise consulting firm that has helped people for over 30 years to find the best franchise via proprietary assessment tools.
Marshall’s background includes over 41 years of business ownership, sales, marketing, and consulting experience. His first endeavor as an entrepreneur was as an independent contractor for the southeastern United States, with the Optyl International Eyewear company based in Austria. During his tenure with Optyl, he was awarded the Consultant of the Year for the United States. Marshall parlayed his success with Optyl into a successful partnership of optical retail superstores in Jacksonville. His company also worked as an outside consultant for Vistakon, a Johnson & Johnson company.