Franchising offers a proven brand with ongoing support to help give you a competitive edge as an entrepreneur. Unfortunately, not all franchises are profitable. Before you get started, it is essential to understand what factors influence profitability and how to increase your revenue to be a profitable franchise.

According to Franchise Business Review, the average franchise owner earns approximately $102,910 annually, reaching $115,688 after the first two years. But this number depends on many factors and can be much higher if you take the right steps. Industries such as health and wellness, fast-casual dining, and business services like AtWork, which provides staffing solutions, often boast higher franchise revenue due to ongoing demand and scalable business models.

When researching opportunities, carefully review a brand’s franchise disclosure document (FDD) to gain insights on potential earnings. The FDD provides detailed information on a franchise investment, including costs, fees, territory restrictions, training opportunities, and more. Item 19 of the FDD may provide a financial performance representation of some of the brand’s top-performing locations. AtWork, one of the fastest-growing staffing franchises, provides sales data in the FDD. The average gross profits for 76 franchise locations were approximately $726,202 in 2023. AtWork’s highest-performing locations earned $14.2 million last year.*

Factors Impacting Franchise Profitability

If you are wondering if the franchising business model can be profitable, finding a direct answer is not easy. Profitability depends on location, brand, and an owner’s business acumen. It is also affected by:

● Brand recognition: A well-known brand offers a built-in customer base. Having customers who are familiar with your brand helps drive traffic and can boost sales, especially in the early stages of starting a business. AtWork has more than 90 locations across the U.S. Each of their franchises contributes to a national marketing fund to promote the brand. AtWork’s franchisees also receive guidance on a grand opening advertising program and local marketing to introduce the brand to their community.

● Demand: Franchise profitability hinges on demand. A brand may perform well in urban locations while the popularity declines in the suburbs. Demand for your products and services needs to be strong in your local area as trends can shift as consumer tastes evolve. Staffing provided job and career opportunities for about 13 million employees in 2023, and U.S. staffing industry sales rose 10.7% in 2022 to $186.3 billion.

● Cost: The profitability of your franchise depends heavily on the initial investment and ongoing operational costs. Pay close attention to the franchise fee, royalty payments, and advertising charges when evaluating a franchise. High operating costs can put a dent in your profits. AtWork franchisees can take advantage of tax incentives to reduce operating costs. The initial investment for an AtWork location ranges from $153,500 to $210,500, including a franchise fee of $45,000.

● Territory: Territory guidelines can impact your location’s profitability and run the risk of market saturation. A protected or exclusive territory limits the number of locations a brand can open in your area. AtWork offers a protected territory with a minimum of 200,000 individuals.

● Training and support: Comprehensive training can help conquer many challenges facing new businesses. A franchise with a robust training program and ongoing support can put you on the fast track to profitability. AtWork’s franchisees receive 50+ hours of training at corporate headquarters in Knoxville, Tennessee, as well as additional training courses, programs, and events.

AtWork’s Award-Winning Brand

Entrepreneurship can be challenging. AtWork offers unparalleled support throughout your journey, including full in-house accounting services such as payroll funding and processing, to streamline the process and put you on a faster path to potential profitability. After your initial training, dedicated sales field operations team members provide ongoing support and guidance. In addition, marketing, IT, and risk management teams assist you throughout your business journey. AtWork has received numerous accolades from Staffing Industry Analysts, ClearlyRated, and Franchise Business Review.

Get started to learn how AtWork can help you launch a profitable franchise that changes lives in your community.

*See FDD for details.