When you are researching franchise business opportunities, one of the most anticipated sections of the Franchise Disclosure Document (FDD) is Item 19: Financial Performance Representations (FPRs). This is where franchisors may (but are not required to) share historical revenue, expense, or profit data from their franchise system.  

On the surface, it feels like the holy grail of decision-making: Finally, some numbers! But here’s the reality: Relying solely on Item 19 to decide whether to buy a franchise is a mistake.

Additionally, Item 19 is not a good source to compare one franchise business to another. Comparing franchise opportunities based on their Item 19 information is the epitome of comparing apples and oranges!

Sit down for this one… Here is why:

1. Not All Franchisors Provide the Same Information (Not Kidding!)

Franchisors are not required to include Item 19… But they do because it helps sell franchise businesses. Some provide detailed financials, while others give partial or limited data (e.g., gross revenue averages without expenses). You might be looking at a “best-case scenario” instead of a complete financial picture.  “It’s like a box of chocolates…”

Fit Tip: Whether you are looking at high or low cost franchise opportunities, Item 19 is just part of the whole picture. If your goal is to find the most profitable franchise for you to own, there are many other sources of data to investigate in order to have a better understanding of a brand’s financial landscape.

2. Averages Tell You What?  Not Much.

Many Item 19 disclosures are based on averages, which can be misleading. An “average” can be skewed by a handful of top-performing franchisees, while the majority may be operating below that number. Without context, the average can set unrealistic expectations.

Fit Tip: Talk to existing franchise owners (and not just the ones the brand recommends) to get a better picture of what a day in the life really looks like. The key to success is not just finding the most profitable franchises to own, but also finding the best FIT for you.

3. Expense Data = Absent.

Even when revenue is disclosed, net income is rarely shown. Item 19 often leaves out critical costs of a franchise business (think rent, labor, marketing, or debt service), which directly impact what you take home. High revenues don’t equal high profits.

And don’t forget – what one owner might expense is wildly different from how another owner manages write-offs and compensation. We are over here expensing home improvements, and another person is expensing their new Audi.  See my blog featuring net income – that is another story for another day.

4. The numbers are HISTORY!

The numbers in the Item 19 are historical data points. They are not futuristic. They are not current year-to-date. They do not represent the current market landscape. The numbers are completely a reflection of the previous year’s performance by owners that were operating a full calendar year prior to updating the FDD (yearly occurrence).

5. Performance Depends on You – And That Is a FACT!

Yes, I mean to tell you that just because this is a franchise, it does not mean you automatically make money! Sorry. Your results won’t just depend on the franchise brand… the most profitable franchises to own will depend on the location, market size, your management style, and your ability to execute the model too. Item 19 can’t tell you how well you will perform—it only shows what others have done under different circumstances.

Fit Tip: When you are looking at a franchise business, how well others have done monetarily is at the bottom of the list of reasons to choose a certain model. You need to pick a franchise that will let your strengths shine, aligns with your expectations around day-to-day life and flexibility, and more.

6. There is Gold In Validation

Numbers are important, but the real insights come from conversations with existing franchise owners. They’ll tell you what margins look like, what unexpected expenses come up, and how long it took them to cover expenses monthly, operate in the “black” or hit break-even. Validation calls reveal the day-to-day realities that Item 19 cannot capture. In essence, we can break it down to simple math:  How much does it cost to run the business monthly (without bells and whistles), and how much does the average ticket bring in? Go ahead… Pull your napkin out and see how many customers you need to break even monthly. Can you do it PLUS some?  

As for the validation stage, we can talk later about how to manage validation calls and pull out the data to use in how YOU will operate. Remember, you are going to run the franchise business… And you may not run it exactly like them. Can you get excited about the typical day-in-the-life?

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Fit Tip:  Item 19 is a useful tool, but it’s only one piece of the puzzle. Don’t let it be the deciding factor. Pair it with thorough validation, market research, and an honest evaluation of your goals and resources – Find Your Fit, and that will show you the money!

Ready to Find Your Fit? Contact us today to get started with your 100% free Franchise Fit consultation. We will help you kick off your journey to pinpointing your perfect fit – whether that is a home renovation franchise, a pet franchise, a fitness franchise, or something else altogether.

FAQs About Franchise Business Opportunities and the Item 19

What is an Item 19 in franchising?

In franchise businesses, “Item 19” refers to a specific section of the FDD (Franchise Disclosure Document). This section covers Financial Performance Representations, or FPRs. Things that could be shared in an Item 19 include earnings information, expense data, revenue, and more. Franchisors are not required to include an Item 19 section in their FDD, but many do, as it helps to sell both high-end and low cost franchise opportunities.

What is the best franchise to own?

The best franchise to own is actually a MYTH. There is no one best franchise – rather, the “best” or most profitable franchises to own are the ones that capitalize on your strengths and skills. If you hate the day-to-day management of a certain franchise, you will not succeed as an owner.

What is the most profitable franchise to own?

The most profitable franchise to own depends on finding the right FIT. When you pinpoint a franchise that lets your strengths shine and plays into your skill set, that is where you will be most successful.

What is the cheapest franchise to buy?

There are many low cost franchise opportunities available in markets like Winston-Salem, Raleigh, Jacksonville, Chattanooga, and many other areas. We can discuss finding a territory and a brand with an affordable entry point into franchising that fits your ideal franchise business profile and everyday needs.

There are affordable businesses in areas like home renovation franchises, pet franchises, fitness franchises, gym franchises, wellness franchises, electrical franchises, plumbing franchises, and many other niches that may not have even crossed your mind!

How much does it cost to buy a franchise?

The cost of buying a franchise varies greatly – and remember, buying a franchise is not just about the initial Franchise Fee. Other startup costs include marketing, hiring, buildouts or renovations, and much more. Typically, the FDD will give you an idea of the costs you will need to account for in the first year or so of getting your franchise off the ground until you break even.

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Are you ready to kick off your next chapter as a franchise business owner?

Schedule a free meeting right here. I can’t wait to chat with you and discuss franchise opportunities, building your business, and starting a new chapter in your career. Working with me is always 100% free, 100% of the time. Talk to you soon!

One of the most common questions or requirements I hear from people exploring business ownership and looking at a franchise for sale is: “Can this franchise replace my salary?”

It’s an understandable question — after all, most of us are conditioned to measure career success in terms of our paycheck, job offer, and yearly raises. But here’s the truth: replacing your salary is only one piece of the puzzle, and focusing solely on the owning a franchise salary can cause you to miss the bigger picture of what business ownership offers.  

With business ownership, you are in control.  You define your paycheck, and there are many different ways to compensate yourself as a franchise owner. Let’s jump into helping you have a different perspective:

1. Salary Is Not Take-Home Pay

Many people think in terms of their gross salary, not their actual net income. “I make $180K a year!” Well… no, you don’t!  Taxes, healthcare costs, retirement contributions, and other deductions mean your “salary” isn’t the same as the money hitting your bank account. When you consider franchising, the better question is: “How much do I actually need to run my household and live the life I want?” That number is often different — and sometimes lower — than the offer letter or raise in salary you have been chasing.

If you are looking at a franchise for sale and thinking of your salary or compensation as one concrete amount, you are thinking about this all wrong. Owning a franchise salary is dynamic, and you can make it work for you in many different ways.

2. Salary Is About Today — Ownership Is About Tomorrow

A corporate salary is predictable, but it ends the moment you leave your job. A franchise, on the other hand, is an asset. You are not just building income for yourself today; you’re building equity in a business you can grow, scale, pass on, or eventually sell. That long-term wealth creation goes far beyond “salary replacement.” Remember, you are in control of the business. You determine your raise and income based on what you put in and want out. This is a big change in mindset!

Fit Tip: There is also the pitfall of looking for the most profitable franchise. Remember, it takes time to build up your franchise to the level of profitability. Any franchise for sale will come with plenty of numbers and statistics to try to demonstrate that it is the most profitable franchise. But really, the most profitable franchise for you is the one that you will enjoy working in and that plays to your strengths.

3. Flexibility and Control Matter, Too

Think about why you’re exploring franchising in the first place. Chances are, it’s not just about money. If it is… this isn’t a “get rich quick” scheme!  Owning a franchise is about controlling your schedule, creating more time for your family, or aligning your work with your personal values. These intangibles do not show up in a salary comparison, but they’re often the reason people make the leap.  What are these important factors worth to you?  There is value and trade-offs in what you are searching for – only YOU can determine how this plays into your search decisions.  

Fit Tip: Looking at a franchise for sale or exploring low cost franchise opportunities? Here at The Franchise Fit Company, we can help you find the perfect option for you. We’ll take into account your needs, budget, skills, interests, preferences, and so much more. Remember, the most profitable franchise is one that brings you joy and makes you excited to invest in a franchise for sale.

4. Risk and Reward Look Different

Your paycheck may feel safe, but it can disappear with a layoff, restructuring, or merger. Franchising involves risk too — but it also gives you the ability to influence your results. Instead of hoping someone in a boardroom makes a decision that protects your job, you’re in charge of driving your own success. When you wake up each day, you make the decision on how hard you work, what you focus on and what happens in the business.  I have not found one business owner to-date that has fired or laid themselves off.   

The reward of investing in low cost franchise opportunities comes in many forms. You will reward yourself with compensation, but you will also reward yourself in living the dream of owning your own business and investing in your financial future.

5. Wealth Isn’t Just Income — It’s a Lifestyle of YOUR Choice

When you build a franchise, you are investing in something that has resale value or legacy for your kids. Many owners exit their businesses with a multiple of annual profits — something no salary will ever give you. Plus, the lifestyle benefits of business ownership (flexibility, freedom, fulfillment) add a dimension of wealth beyond dollars and cents.  The value I place on time is much greater than when I was trying to climb the ladder of success.  At the end of the day, who really cared about title and role? Oh, it was only me!  My family, on the other hand, cared if I was present or not.

6. It’s About Return on Life as Much as Return on Investment

If your only measure of success is whether a franchise for sale replaces your old paycheck, you’re applying an employee mindset to an ownership opportunity. The real question is:

• Does this business align with the life you want to live?
  
• Does it give you the opportunity to create wealth, not just income?
  
• Does it help you define success on your own terms?
  

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What Owning a Franchise Is Really About

Replacing your salary might be the starting point in your franchise search, but it shouldn’t be the finish line. Salary is a single number without meaning. Ownership is a whole picture — financial, personal, and lifestyle — that can transform the way you work and live. 

I only wish I could explain the feeling of being on the other side.  It is a journey each person must take individually and for their own reasons!

If you’re exploring franchise ownership, I’d love to share what I’ve learned—and help you find the path that’s truly the right fit for you.

Schedule a free meeting right here. I can’t wait to chat with you and discuss franchise opportunities, building your business, and starting a new chapter in your career. Working with me is always 100% free, 100% of the time. Talk to you soon!

FAQs About Owning a Franchise Salary

What is the best franchise to own?

The best franchise to own depends on your personal needs, preferences, and desires. During The Franchise Fit Company process, we will closely examine what you need to succeed and build a profile of your ideal brand. Then, we will explore a few different options that suit your needs to discover what is truly the best fit for YOU. Remember, the most profitable franchise to own is the one where you will succeed and put your skills to good use.

What is the most profitable franchise to own?

There are certain low cost franchise opportunities that have higher average profits than others, but the most profitable franchise to own is one where you will succeed. You can buy a franchise with high margins and a strong track record of success, but if it does not play to your strengths, you will not see the same strong results.

How much do franchise owners make?

Franchise owners compensate themselves differently from those who are paid an annual salary. You will pay yourself a certain amount, but you may also make more during certain seasons of the year. Additionally, there are many tax benefits to business ownership, as you can embrace certain write-offs and other wealth management strategies.

How much do franchise owners make a year?

During the franchise discovery process, you will find out more information about how much owners with a certain franchise brand make per year. You can also discuss this topic with existing owners on validation calls, which help you learn more about the experience of being an owner with a certain brand. Of course, your own earnings will depend on your personal business success and the market you are in.

Ready to Find Low Cost Franchise Opportunities?

Here at The Franchise Fit Company, I am here to help you find the perfect franchise for sale that meets all of your individual needs. Together, we will craft a plan to help you find a profitable franchise model that plays to your strengths and will yield you excitement and success.

Contact Me to get started today!

I took over an existing franchise for almost zero investment—literally just opened a bank account and added some operational funds. Yes, these opportunities exist. Sometimes, an owner is ready to move on, and you can get a steal of a deal.

But let’s be clear: nothing is ever truly free.

What I inherited:

• A business that had once grossed over $1M annually
  
• At takeover, it was bringing in ~$40K/month and declining
  
• 8–10 staff members, solid customer accounts, 2 office locations, and all the equipment and supplies
  

Sounds great, right?

Well, here’s what I actually found:

• Jobs were severely underpriced—no profit in sight, lots of “friends and family” discounts
  
• A team with poor attitudes and little accountability—zero leadership, zero quality control
  
• No GM in place (and I had planned on running this semi-absentee)
  
• Marketing? Nonexistent for the last 6–8 months
  
• Leads weren’t being worked, and new business came solely from word-of-mouth
  

So yes, I got a deal—but it came with surprises.

What I did next:

• Cut the business in half within 60 days—raised prices, lost some customers, but that was OK
  
• Addressed the team—some left, others were let go. Also OK
  
• Promoted a manager to oversee the day-to-day
  
• Restarted marketing efforts
  

It still took over a year (and a lot of trial, error, and tough calls) to turn a profit.

Lesson: Buying in doesn’t guarantee a head start. You must dig in, evaluate thoroughly, and be ready to do the work. 

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Starting a Franchise from Scratch

In contrast, my husband and I launched a brand-new franchise location together—and the difference was night and day.

With strong franchise training, a detailed launch plan, and ongoing support, we were able to:

• Make every decision with intention
  
• Shape the customer experience from day one
  
• Stay laser-focused on margin and quality
  

Within six months, we were closing projects, protecting our profits, and putting money back in the bank.

Yes—it was still work. But when you’re aligned with a franchisor that has proven systems, real support, and a solid structure, starting from scratch doesn’t have to be scary.

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Moral of the story:
Whether you buy existing or build new, the right FIT matters.
Know your strengths, understand the work required, and partner with a brand that aligns with your goals.

If you’re exploring franchise ownership, I’d love to share what I’ve learned—and help you find the path that’s truly the right fit for you.

Contact Me