how to become franchisee

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how to become franchisee

One of the benefits of opening a new franchise business is that you don’t have to start from scratch. A viable concept already has been established. Your job as a franchise owner is to duplicate the formula to generate a profit for yourself. You must complete a rigorous evaluation process to be approved to run a franchise operation.

1
Decide on the type of franchise you want to open. Food, cleaning and check cashing services are common franchise operations. Choose a field where you have some type of experience or expertise, as this is one of the qualifiers the parent company will use when evaluating your application. It’s also helpful to have some type of management experience.

2
Look up available franchise opportunities in your chosen industry on a franchise search website (see Resources).

3
Examine the terms, conditions and requirements for each franchise opportunity that you’re interested in exploring. Find out how much of an initial investment you need to qualify as well as credit requirements.

4
Check the background of the franchisor (parent company) to find out more about its reputation. You can look up the business on Hoovers and the Better Business Bureau and contact the American Association of Franchisees and Dealers (AAFD).

5
Research the area where you want to open the franchise to determine if there is a genuine demand for that type of business. Franchises commonly research an area before offering an opportunity there, but it’s still helpful to do your own research as well. You can examine demographics data (income, homeowners, interests) for the area using a service like ZIP Skinny (see Resources) and conduct surveys in the community to gauge interest in products or services.

6
Submit an inquiry to become a franchise owner with the company. The inquiry is just a note (or call) to the company containing your contact information. In some cases you’ll receive the application automatically, but in others you might have to include the amount of funds you have available for investment to receive the application. Note the area where you want to establish your business. The franchisor sends information about the opportunity and the application.

7
Review the application and fulfill all of the requirements. You likely will need to provide detailed background information about yourself, including your social security number, credit profile, occupation, and proof that you have the initial investment (or that you’re able to borrow the funds needed).

8
Examine the response from the parent company once you receive word back. If you qualify, you’ll receive detailed instructions for the next steps, including finding a location and establishing a lease (if applicable), borrowing funds, attending training sessions, and preparing for your grand opening.

what does a franchise owner do

Owning a franchise is a great way to get into business without having to start from scratch and build from the ground up. Buying a franchise has the built-in advantages of having an established brand that the public already knows and uses, which can give you a head start in the business world. When you buy a franchise, you also get training on how the brand operates. This means even someone who has never had experience running a business can still become a business owner. As a franchise owner, you can finally take hold of the American dream and be your own boss.

Business Owners
Is It Hard to Buy a Franchise?

Buying a franchise, assuming you have the initial investment, is not difficult. The franchisor will have everything in place to help you get started. They will help you find the location for your franchise. In fact, in many instances, there will already be a location selected based on consumer research the franchisor has already done. This ensures your franchise is in the prime location for optimal business. Some franchisors even offer financing, so you won’t even need to go through a bank to get the funding. The franchisor will also offer training on the franchise products and their methods of operation, all of which you as a franchisee will have access to. Additionally, you will be allowed to use the intellectual property of the franchise as a part of your advertising. As an added bonus, most big franchises run nationwide ads that benefit you as a franchise owner. This means that buying a franchise isn’t that difficult, which is why franchise ownership puts owning a business within reach of so many Americans.

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What Does a Franchise Owner Do?

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.

The owner of a franchise has responsibilities that are similar to any small business owner. The franchise owner will spend a great deal of time ensuring the quality and standards put in place by the franchisor. 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.

Franchise Owners
Other duties of a franchise owner:

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.
Marketing: While the franchisor takes care of a lot of the advertising, especially on a nationwide level, individual franchise owner need to do some local marketing. This means budgeting money for marketing strategies and running them by the franchisor to make sure the advertising meets the standards set forth under the terms of the franchise agreement. Franchisees who have some marketing skills are likely to have a greater degree of success as a franchise owner.
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.
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.

franchise owner salary

Franchise Owner Salary
Yearly
Monthly
Weekly
Hourly
Table View

National Average
$11,000$76,881 /year$200,000
$37 /hour
Franchise Owner Salary Comparison by Location
Nationwide
United States
$76,881
Lagos, NG
$76,881
Enter city, state or postal code

How much does a Franchise Owner make?
As of Feb 10, 2022, the average annual pay for a Franchise Owner in the United States is $76,881 a year.

Just in case you need a simple salary calculator, that works out to be approximately $36.96 an hour. This is the equivalent of $1,478/week or $6,407/month.

While ZipRecruiter is seeing annual salaries as high as $200,000 and as low as $11,000, the majority of Franchise Owner salaries currently range between $23,000 (25th percentile) to $98,500 (75th percentile) with top earners (90th percentile) making $200,000 annually across the United States. The average pay range for a Franchise Owner varies greatly (by as much as $75,500), which suggests there may be many opportunities for advancement and increased pay based on skill level, location and years of experience.

Based on recent job posting activity on ZipRecruiter, the Franchise Owner job market in both Lagos, NG and throughout the entire state of is not very active as few companies are currently hiring. A Franchise Owner in your area makes on average $76,881 per year, or the same as the national average annual salary of $76,881. ranks number 1 out of 50 states nationwide for Franchise Owner salaries.

To estimate the most accurate annual salary range for Franchise Owner jobs, ZipRecruiter continuously scans its database of millions of active jobs published locally throughout America.

Find your next high paying job as a Franchise Owner on ZipRecruiter today.

What are Top 10 Highest Paying Cities for Franchise Owner Jobs
We’ve identified 10 cities where the typical salary for a Franchise Owner job is above the national average. Topping the list is Sunnyvale, CA, with Santa Rosa, CA and Cambridge, MA close behind in the second and third positions. Cambridge, MA beats the national average by $14,173 (18.4%), and Sunnyvale, CA furthers that trend with another $20,259 (26.4%) above the $76,881 average.

Importantly, Sunnyvale, CA has a moderately active Franchise Owner job market with only a few companies currently hiring for this type of role.

With these 10 cities having average salaries higher than the national average, the opportunities for economic advancement by changing locations as a Franchise Owner appears to be exceedingly fruitful.

Finally, another factor to consider is the average salary for these top ten cities varies very little at 12% between Sunnyvale, CA and Baltimore, MD, reinforcing the limited potential for much wage advancement. The possibility of a lower cost of living may be the best factor to use when considering location and salary for a Franchise Owner role.

City Annual Salary Monthly Pay Weekly Pay Hourly Wage
Sunnyvale, CA $97,141 $8,095 $1,868 $46.70
Santa Rosa, CA $93,899 $7,825 $1,806 $45.14
Cambridge, MA $91,054 $7,588 $1,751 $43.78
Vacaville, CA $89,304 $7,442 $1,717 $42.93
New York City, NY $88,309 $7,359 $1,698 $42.46
Fairfield, CA $88,222 $7,352 $1,697 $42.41
San Mateo, CA $87,713 $7,309 $1,687 $42.17
Lynn, MA $86,950 $7,246 $1,672 $41.80
Anchorage, AK $86,814 $7,235 $1,670 $41.74
Baltimore, MD $85,482 $7,123 $1,644 $41.10
What are Top 5 Best Paying Related Franchise Owner Jobs in the U.S.
We found at least five jobs related to the Franchise Owner job category that pay more per year than a typical Franchise Owner salary. Top examples of these roles include: VP Franchise, Vice President Franchise Sales, and Director Franchise Sales.

Importantly, all of these jobs are paid between $7,603 (9.9%) and $62,639 (81.5%) more than the average Franchise Owner salary of $76,881. If you’re qualified, getting hired for one of these related Franchise Owner jobs may help you make more money than that of the average Franchise Owner position.

Job Title Annual Salary Monthly Pay Weekly Pay Hourly Wage
VP Franchise $139,520 $11,627 $2,683 $67.08
Vice President Franchise Sales $119,465 $9,955 $2,297 $57.44
Director Franchise Sales $91,896 $7,658 $1,767 $44.18
Franchise Sales Representative $84,687 $7,057 $1,629 $40.71
Franchise Director $84,484 $7,040 $1,625 $40.62

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