How much profit can I expect from a franchise?

While franchisors can show you some historical averaged results from their franchisees, how much you can expect to make depends on many factors. 

Two of the most important factors are up to YOU:

• Are you following the franchise guidelines exactly?
• What level of effort are you putting into management of the business?

Other factors include things like:

• Overhead & rent- this varies by city and province       
• Labor costs – this also ranges by city and province, and needs to be well managed
• Franchise royalty fees – you know this in advance, but do take it into consideration
• Location – is it an expensive location and is it well-placed?
• Demand for your product/services
• Changes in the economy 
• Seasonality – some brands are summer, or winter based. These may be best supplemented by a secondary brand for the off-seasons, or run as an add-on to an existing business.

Keep in mind…

There can be surprises along the way and for this reason it is good to have a contingency fund in place.

Having enough working capital available is key to a healthy (and profitable) business.

While some brands start earning right away, most brands take 1-3 years to fully ramp-up to expected returns.