Entrepreneurship is a long road and one that requires you to constantly learn and grow. The payoff is worthwhile, as franchise businesses generate an incredible amount of revenue.
In 2022, franchises had an economic output of more than $825 billion.
But here’s the (hopefully) million-dollar question that still needs answering… How do franchise owners get paid?
Below we’ll answer this question, along with information that’ll help you along your franchise journey.
How Do Franchise Owners Get Paid?
Learning as much as possible about franchise businesses starts with making sure that you get paid as you should.
Like most aspects of entrepreneurship, there’s no set amount or guarantee that you get paid as a franchise owner. You will keep the proceeds of sales revenue and business generated after all expenses and overhead are cared for.
This will be a different amount depending on the success of your business and how much you pay to maintain it. There are several different types of fees that you’ll pay when running a franchise.
These might include fixed fees, royalties, and other costs. Always read through the franchise contract to know what fees you’re responsible for and to know what amounts you’ll have to clear to become profitable.
The Role of a Franchise Owner
As a franchise owner, you are responsible for wearing a lot of hats. The more you optimize your role as a franchise owner, the more chance you’ll have to grow the surplus.
When you grow this potential, you’ll inevitably get paid more as the owner. So, what sort of tasks are you responsible for?
Managing the Operations
As the franchise owner, it’s on you to keep the core aspects of your business running correctly. You’ll need to be a skilled planner and manager.
This way, you can put the pieces and processes in place that make your business efficient. The success of your building starts from the top down.
Handling the Staff and Personnel
Franchise owners must also be hands-on with the team that they put together. You will hire the location manager and the people that report to them.
As the franchise owner, you’ll have access to the budget, which lets you know how many positions you need to fill and at what rates. Assembling a skilled staff is one of the most critical steps for making your franchise more profitable.
Creating a Culture
The franchise owner is also responsible for creating a culture that everyone will buy into. When your franchise has a strong culture, it’ll be a place where employees love to work, and customers love to patronize.
Choose a mission statement for your franchise and constantly reinvest in the culture so that it can blossom.
Marketing and Acting as an Ambassador
You set the tone for the way that your franchise is marketed. This applies whether you own a major sports franchise or a small-town restaurant.
Come up with marketing campaigns, slogans, and other ideas that will help set you apart. You’ll also need to get the help of marketing professionals that can help execute these campaigns.
Depending on the type of franchise you run, you may need to invest in marketing strategies like search engine optimization (SEO), social media marketing, e-mail marketing, and other efforts.
As the owner, you’ll also need to be the face of the brand. This could mean playing an active role in front of cameras and other media platforms. It could also mean representing the franchise at meetings.
This requires you to know your company inside and out so that you can drive brand awareness and generate new business.
Consider the Types of Franchises
There’s always a lot to learn about being a franchise owner. A big part of embracing this role comes with understanding the type of business you’re running.
There are many different types of franchises, such as restaurants, retail, and entertainment entities. The restaurant franchise is probably the most popular type. Many entrepreneurs purchase franchise rights to fast food chains that they can open up in their city.
People look to sports franchises when they want to see businesses that are well-oiled machines. Learn all about your area of business so that your franchise can thrive.
Get the Resources You Need
Above all, be sure that you get the resources that you need to run your franchise optimally. This could mean looking into the help of a business or entrepreneurship coach. They’ll help you reach your full potential so that you’re better able to pour into your business.
Work with a certified public accountant (CPA) or finance professional who can handle your books, investing, taxes, and other issues. You’ll also need the help of a business legal professional. They’ll assist you with all filings and can help you conduct research.
Develop a close rapport with the franchise agent or representative that you’ll be in closest contact with. This is your point person when you have questions and need advice on getting the most from your franchise.
Leave no stone unturned and get any resource that you need.
How Do Franchise Owners Get Paid?
So, how do franchise owners get paid? Now that you know you’re paid from your surplus, it’s time to become the best franchise owner you can be.
You’ll be able to handle your franchise and other businesses when you begin with the words of advice above. Double down on what you just learned by staying tuned to our site and reading our other finance and entrepreneurship-related articles.
