How Much Do Franchise Owners Make? Insights for Aspiring Entrepreneurs

Curious about how much do franchise owners make? There are a lot of factors that drive the success and profitability of a franchise. Knowing what you can and should expect financially can help you make a smarter investment.

Learn more about your ability to profit as a franchise owner.

Understanding Garage Remodeling Franchise Income

How much do franchise owners make? There’s no one way to answer that question. Franchising can be incredibly lucrative. According to Franchise Business Review, top performers can earn over $250,000 per year. Depending on the industry, the average annual may be closer to $100,000. Franchising in the home services industry may give you more opportunities to profit, as these businesses provide services that people need no matter what shape the economy is in.

A lot of things – some of which you can control and others you can’t – go into the ultimate profitability of your business. Franchises take time to grow, and profits in your early years will likely be impacted by lower growth and higher expenses. While your garage remodeling franchise income is nearly impossible to predict, your franchisor’s Franchise Disclosure Document (FDD) can provide a helpful look into what’s possible. Under Item 19, your franchisor may share earnings claims for the system. Generally, this includes average unit volume, gross sales, and sales breakdowns.

What goes into my take-home pay?

Your net pay will always differ from your gross profits. Although you are responsible for certain franchise fees, the process that goes into determining a franchise owner’s take-home pay isn’t that different than it is for other business owners. To start, you’ll need to decide how you want to pay yourself. In most cases, you can either put yourself on the salary or take an owner’s draw. There are pros and cons to both. 

• When you’re on a salary, your take-home pay will be lower because you’re paying taxes through your paycheck. You’ll see the same federal, state, Social Security, and Medicare taxes removed from your paycheck as other employees do. Salaried owners can count on a steady paycheck, but it may be more challenging to cut your pay when profits are low.
• When you take the owner’s draw, you’re withdrawing tax-free money from the company account. You will have to pay self-employment taxes when you file your annual return, and you’ll need to be sure you’re accounting for that. This option is more flexible, especially for those who are in their first years of business, but it is more reliant on profits.

What Factors Influence Garage Remodeling Franchise Income?

Recurring Costs and Fees

Sales are only part of your PremierGarage franchise revenue. First of all, you won’t keep 100% of your profits. A percentage of your gross profits will go to the franchisor in the form of recurring fees and royalties. Of course, it’s important to keep in mind that you get a lot back in return: these fees help your franchisor provide robust support, including marketing, research, and technology. You can find a list of the fees specific to your franchisor in Item 6 of your franchisor’s FDD.

You’ll also need to account for standard business expenses, like equipment, payroll, and insurance. There will also be costs associated with getting your business up and running, like establishing your office or living expenses during your training. The good news is that, as a franchise owner, you get a heads up on what those will be. Item 7 of the FDD provides a thorough breakdown of their initial investment cost and other expenditures you can expect in the early years of your franchise. This information is generally presented in a low-to-high range.

Other Variables

Your profits can be impacted by everything from where you open your business to the kind of business you open. Keeping these variables in mind as you decide on a franchise investment may help you make a smarter choice.

• Industry: Franchises in the home services industry, like PremierGarage, have a well-earned reputation for being recession-resilient. Even when consumer spend softens, the demand for home improvement projects remains stable. The garage organization and storage market is on a stable growth trajectory, with a compound annual growth rate of 8.9% expected through 2033.
• Location: Some areas cost more to open a business in than others. While PremierGarage’s work-from-home, no-inventory model eliminates the cost of securing and maintaining real estate, it can still cost more over time to do business in a high cost of living area. Your franchisor can help you identify the right territory for your goals.
• Brand reputation: People are more likely to try out a new-to-them business if they’ve heard of it before, but that’s only if they’ve heard good things. Be sure that you do your due diligence about each brand you’re considering. Partnering with the right brand can help you build your business faster – and profit sooner.

How to Increase Profit Potential

You don’t need prior industry experience to create a profitable franchise business – the support and resources you receive from your franchisor will give you the tools you need to thrive. Throughout the life of your franchise, PremierGarage owners benefit from:

• National and local marketing initiatives
• Non-manufacturing business model that optimizes operational costs and increases profitability.
• Proprietary 3D design software that seamlessly integrates with our CRM and effortlessly generates proposals during client consultations
• Innovative services and products that reflect consumer preferences
• Opportunities to network within the franchise system
• Business coaching and mentorship
• Continuing education program and advanced installation classes to enhance skills and increase owner profitability

PremierGarage: A Winning Opportunity

PremierGarage is second-to-none in garage remodeling, with customizable solutions that appeal to every homeowner. Our stellar reputation, world-class resources, and unique place in the market can help any investor find franchise success, whether they have previous industry experience or not. We have what it takes to help you thrive.

Ready to get started? Inquire now, and one of our franchise advisors will be in touch with more information.