Thousands of entrepreneurs take the plunge and invest in franchises as a way to grab onto the American dream. The lure is having a proven brand concept and training and marketing support to improve the odds of start-up success. But for most, the No. 1 question every prospective franchisee asks is: "How much money can I make?"
As part of the just-launched "America's Star Franchisees" list, the 50 franchisees profiled across the country provided annual gross sales figures, many running into the millions of dollars. But as part of its work on the project with CNBC, Franchise Business Review also reviewed profit figures for the vast majority of "Star Franchises" and found that these franchises as a group average three times the net income of the average U.S. franchisee.
For some, the advantage was starting with a low-cost franchise and hitting the ball out of the park. Others were able to generate a high return on investment, even at a greater initial franchise investment. And remember, the franchisees on this list are rock stars, not the average.
Unfortunately, many new franchise owners start off with unrealistic financial expectations, and never achieve the level of financial success they had hoped for. It's important to understand that relying on one financial figure provides an incomplete picture of a franchise opportunity.