How Much Do Franchise Owners Make?

In the franchise world, it is the question on everyone’s mind, “how much do franchise owners make?” Answering that question is not easy. Reputable franchisors typically do not disclose this information. This protects themselves and franchisees from litigation. If a franchisor promises a specific figure and the franchisee is unable to make this figure, then the franchisor is subject to a lawsuit. For this reason, franchisors will point to item 19 of the FDD (franchise disclosure document).

Item 19 of the FDD delineates financial performance of the franchise and offers a glimpse of the average revenue a franchisee can make. Item 19 is also called Financial Performance Representations (FPR). Many times there is such a wide range offered in the FPR ($50,000-$500,000) that item 19 is a relative number. This is why some franchisors decide not to include item 19 since filling out the item is optional.

Understanding how much you can make as a franchise owner is situational. However, there is some insight into typical franchise owner salaries. It’s important to note that this information is incredibly vague. There are hundreds of business concepts in the franchise industry with varying operational costs and revenues.

Breaking Down the Figures

So, is there a conclusive way of answering how much do franchise owners make? A few research firms have attempted to crunch the numbers and supply a definitive figure. Franchise Business Review analyzed data from 28,500 franchisees surveyed, finding the average annual pre-tax income to float around $80,000.  Take this number with a grain of salt. A small number of top-performing franchises can artificially inflate this end figure. After compensating for artificial inflation, the average annual pre-tax income for the same group of franchisees was actually under $50,000. The same report showed that 51.5% of franchises earn profits of less than $50,000 a year while 7% earned upward of $250,00 a year. This reinforces the idea that individual success is contingent on how hard each franchise owner works.

Quick-service restaurants comprise 20.8% of the franchise industry. A restaurant franchise owner makes on average $82,033 a year, according to the FBR.  Restaurants usually have the highest startup costs but at the same yield some of the highest returns. A well-established restaurant brand might require anywhere from $100,000 to $500,000 in initial costs. A well-established brand can cost up to $1 million. These startup costs also come into play in deciphering how much a franchise owner can make. Return on investment (ROI) is dependent on these startup costs. Items 5, 6, and 7 of the FDD disclose these initial startup fees. Costs for royalties, advertising, and equipment purchasing will be listed here. Another thing to take into consideration is expansion. A franchise owner who owns a dozen McDonald’s is going make more than an owner of a single restaurant.

Many franchisors have guidelines that set their franchisees up for financial success. By regulating franchise owner tactics, the franchise as a whole can profit. Operation policies, territory, and use of trademark are controlled by the franchisor. This control is for the benefit of the franchisee. For instance, Splash and Dash Groomerie & Boutique aims for franchisees to break even within six months. The pet franchise strives to accomplish this with proven tactics. Maximizing profitability means focusing on three business segments–labor, rent, and cost of products sold. Franchise owners keep their overhead low by optimizing these areas. Marketing, location, and price-points all usually have guidelines or restrictions in place from the franchisor. These regulatory methods are put in place to help guide a franchise owner to succeed.

How Much can a Pet Franchise Owner Make?

The truth is franchise ownership is circumstantial but not completely arbitrary. The financial success of a franchise owner is contingent on how hard each owner works. The key to operating a lucrative franchise is favorable marketplace conditions. A franchise with a unique business model, recurring revenue, and firm hold in a recession-proof industry that is growing has favorable variables for financial success.

Splash and Dash Groomerie & Boutique owners benefit from low startup costs and a niche in a booming industry. The company’s business model focuses on uniqueness. Splash and Dash is the only pet franchise to offer a membership program. With this program, customers benefit from convenience, while owners benefit from a recurring revenue stream. On top of this, owners provide eco-friendly and holistic retail options for their customers. This niche-focus gives franchise owners an advantage over big-box stores that don’t offer these products. Also, each Splash and Dash owner is empowered with proprietary software. This software handles all operational tasks of owning a pet franchise. This software was specifically developed for this need.

The pet industry has been growing for the last three decades. In 2016, the 65% of U.S. households that own a pet spent $66.75 billion dollars on their pets. New markets are opening in upscale retail storefronts, all-natural pet food, and human spa-quality services. Of course, people want the best for their pets and consumer demand is showing this view. This is driving the financial success of retail pet spa franchises like Splash and Dash Groomerie & Boutique.

Discovering the answer to, “how much do franchise owners make” is an elusive number. Those interested in owning a franchise should do their homework. Conduct extensive research into the franchise business concept and industry you plan on investing in. Make sure you are comfortable in buying a franchise. Finding the right franchise fit could mean the difference between a failed small business or owning a thriving franchise.

Good luck!


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Everything You Need to Know Before Opening a Dog Grooming Franchise

Opening a dog grooming franchise merges two amazing things—making money and having fun. Of course, like opening any small business, a pet grooming shop requires some challenging work. The U.S. Census Bureau forecasts pet franchises to mirror or grow faster than other sectors in the industry through 2020. Not surprising, the pet industry has been rapidly growing in the last two decades. Last year in 2016, the total U.S. pet spending ended at $66.75 billion with 65% of households owning at least one pet. Since 2010, expenditures have grown by over a whopping 38%. The services and products provided in a dog grooming franchise—food ($28.23 billion), services ($5.76 billion), and supplies ($14.71 billion)—account for over 72% of the market. Strengthened by kinship between humans and pets, it seems that the pet franchise will continue to spiral upward.  

The ABC’s of Opening a Dog Grooming Franchise

A dog grooming franchise is typically a brick-and-mortar establishment. Some grooming franchises also have retail space and sell pet products and supplies. Others strictly offer grooming services. Lately, industry trends have shown that consumer-demand leans toward up-scale services and products. Many customers want their dog grooming services to mirror human spa services. Thus, many establishments like Splash and Dash Groomerie & Boutique, are filling the void with lavish pet salon services.

Splash and Dash is one of the fastest growing franchises in the grooming sector. The franchise model combines up-scale grooming services with retail, making storefronts a one-stop-shop. Unique to the pet franchise, Splash and Dash’s membership program supplies franchisees with a recurring revenue stream. The company also has proprietary technology. The software is specifically designed for a dog grooming franchise which simplifies everything. Ranked 59th in Entrepreneur Magazine’s Top New Franchises List, Splash and Dash is an amazing platform to enter the booming pet industry.

Read on for a ten-point guide to figuring out how to open a dog grooming franchise!

Test The Water First

Before you dive into owning your own small business, spend some time at a pet store. You can volunteer. Volunteering research is a smart way to ease your way into what could end up as a career change. Volunteering is a no-cost, non-risk way to find out if working alongside animals is your calling.

Find a Strong Brand

One of the strongest reasons to opt for a franchise over doing independent business is brand. A brand that resonates with consumers has a strong vantage point. Outside of the pet industry, everyone knows what those golden arches mean. It’s important to pick a brand that you are proud to represent. As the pet industry continues to grow, franchises like Splash and Dash have perfected their brand. Amazing service, inviting decors, and a convenient business model just scratches the tip of the iceberg for this dog grooming franchise’s brand.

Embrace Your Niche

As you get closer to your grand opening, you will want to select an inventory customers can’t get at big-box pet stores or department stores. This gives your dog grooming franchise an edge. Many pet parents want the absolute highest quality of food and supplies for their dog. Providing an eclectic inventory of affordable first-rate products helps distinguish your shop from competition. Splash and Dash offer unique lines of all-natural dog treats and embraces eco-friendly pet supplies. The company’s services are up-scale pampering combined with a boutique-feel to the retail side of the business.

Know How Much Capital is Required

Franchises have various price tags. Some dog grooming franchises have a minimum cash requirement of $500,000 while others are as low $25,000. You will need to pay a franchise fee, sign a lease for your storefront, and buy equipment & other supplies. For information on Splash and Dash’s cash requirement, click here!

Training & Support

Many Splash and Dash franchisees came from completely different industries than the pet care industry, like nursing or government contracting. Even if this is not the case, and you have worked with animals before, it’s always a good idea to go with a franchise with strong support. The idea of franchising is taking a business model that has been proven in the marketplace. Without a comprehensive grasp of the franchise’s business model, your probability of achieving success lowers. Splash and Dash offer on-site training and support throughout the entire process of opening and onward. The company’s goal is for franchise owners to break even with six months. Refined training and support is how the dog grooming franchise is able to do this.

Can you Conform to Guidelines?

Many military veterans make amazing franchise owners because they are disciplined and can follow direction. Within franchising, guidelines are important to keep franchisees on track. Some franchises have strict policies on marketing, equipment purchasing, and territory exclusivity. As you research and speak with various dog grooming franchises, make sure you have a clear understanding of their guidelines.

Leasing & Location

You will need to find a location that is conducive to owning a pet grooming salon. Make sure you do your homework on zoning laws, permits, and ordinances involved with live animals. You will also need to discuss territories with your franchisor. A franchise that infringes on their own territory can self-cannibalize. You will also need to keep tabs on competition in the local area as well as pet-owning demographics.

Splash and Dash Groomerie & Boutique Location Provisions:

  • 1,000 to 1,200 square feet of space.
  • Strong ingress and egress access.
  • Adequate parking to accommodate frequent visitors.
  • A 5-year base term lease with two 5 year options.
  • No percentage rent or radius restrictions

Local Competition

A dog grooming franchise has a strategic vantage point over a strictly retail store. Owners will have to physically bring their dogs into the shop to have them get their grooming. This alleviates the sharp competition with e-commerce pet stores. On the other side of this is mobile grooming. Mobile grooming has recently become popular for its convenience. A huge downside for mobile grooming is mobile businesses cannot provide the retail options a storefront can. Finally, you will need to be cognizant of other dog groomers in the area. If the local market is already dominated than you might consider looking to open elsewhere.

Big-Box Competition

Warehouse style franchises like Petco also aren’t considered direct competitors. Small-scale franchises offer niche products and services that actually give them a vantage point over impersonal big-box stores.  

Educating Your Customers

Owning a grooming salon means you will need an in-depth knowledge of animal behavior, grooming services, and health benefits. Although Splash and Dash owners aren’t the ones doing the grooming, they are often working with customers. Educating your clientele on the best options for dogs not only keeps customers and their pooches happy and healthy, it is a strong selling point. For instance, Splash and Dash offers a dog treat line called Keepin’ it Simple. The line offers treats made with 7 ingredients or less. Also, dog grooming is preventative care that can fend off veterinary visits later down the line. Explaining this to customers takes extensive knowledge of this yourself.

The Bottom Line

Opening a dog grooming franchise is tons of work but the payoff can be amazing. Splash and Dash franchise owners get the opportunity to be leaders in their community—both canine and human. Working alongside animals is an enriching experience that when done right, can also be very lucrative. It’s truly an animal lover’s’ dream.