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Year 1 Franchise

What to Expect in Year 1 of Franchise Ownership

The first anniversary of franchise ownership is a major milestone for any new franchisee. The lessons resulting from a year of experience, if acknowledged and documented, can serve as a guide for the future. Each business is different, each location is different, so the ebbs and flows of each franchise are unique. While it’s impossible for anyone to know exactly what to expect in the first year of franchise ownership, some things are standard.

The franchise fee affords owners certain rights and benefits, one of which is extensive training. Oftentimes this training will take place on the premises of another franchise location. This experience is one of the most valuable a new franchise owner can possibly have. They gain hands-on experience that will allow them to hit the ground running at the time of their grand opening.  Plus, they have the opportunity to forge a working relationship with a fellow owner who may be able to offer insight and support down the line.

It should go without saying, but regardless of the business type, the first year of franchise ownership will undoubtedly involve expenses. While perusing franchise opportunities, it’s easy for someone to become fixated on the franchise fee and forget the other expenses that accompany franchise ownership.  Before making a major commitment, it’s important to calculate all foreseeable expenses such as insurance, lease payments, marketing contributions, plus a contingency fund to help someone decide which franchise fits their budget.

Depending on the type of business, fluctuations can be expected. Some make the majority of their annual profits during the holidays or over the summer months.  Once a franchise has been open for a calendar year, it’s important to note these highs and lows to better plan for the future in terms of inventory, staffing, and hours of operation. If the business owner is unfamiliar with their local community, year one will serve as an introductory period that identifies events which may have a bearing on sales and staffing requirements as well.

Three occurrences are almost a given, and they are: hiring, firing, and quitting. It is highly unlikely that the entire staff present at the grand opening will still be under employ one year later. Choosing the staff that the business opens with will make a lasting impression on all new customers. Weak employees who are not dependable or trustworthy cannot remain with the company, the risk is too great. While some franchises can offer long term career opportunities, others are viewed by employees as waiting rooms until a better opportunity comes along. It’s important to maintain a pool of applicants to serve as replacements in the event of turnover.

The most important thing any franchise business owner can expect in the first year is uncertainty. By preparing for anything and everything, a business owner will be less susceptible to risks and adversity.

Next Steps

If you’re considering a franchise investment or just have questions, feel free to contact one of our franchise specialists to learn more about the process and all the different franchise opportunities by completing our request form or calling 1-877-650-5551.

Top Paint and Sip Franchise Opportunities

“Paint and sip” is one of the fastest growing franchise categories this year. In these workshops, you and your friends can paint, create and party. Brush up on what these top studios have to offer and get involved!

Bottle & Bottega


Bottle & Bottega is “all about friends, a canvas and a bottle of wine.” Rather than an art class, this studio hosts art parties where people can celebrate, relax, try something new and create a masterpiece. Entrepreneur Magazine’s No. 42 best new franchise of 2015, Bottle & Bottega has a total investment ranging from $62,200 to $125,600 and an initial franchise fee of $20,000. The ongoing royalty fee is 6 percent and the term of franchise agreement is renewable after 10 years. Bottle & Bottega requires a net worth of $250,000 and $75,000 of available liquid cash. The company also provides training at headquarters and online.

Painting with a Twist


Ranked No. 1 in the paint and sip category on Entrepreneur Magazine’s 2015 Franchise 500, Painting with a Twist offers step-by-step instruction for patrons while they celebrate birthday parties, bridal showers, or just a night out. This BYOB studio has a startup fee of $25,000 and a total investment of at least $94,300. The ongoing royalty fee is 6 percent and the franchise contract is 7 years and renewable. Painting with a Twist requires a $150,000 net worth and $50,000 of liquid cash available. However, the company does permit absentee ownership.

Pinot’s Palette


Pinot’s Palette offers regular painting classes as well as private, corporate and mobile events. This studio, too, encourages you to open a bottle of wine as you open your paint can. To start a Pinot’s Palette, there is a franchise fee of $25,000. The total investment cost falls between $74,200 and $173,500 with an ongoing royalty fee of 10 percent. The financial requirements for franchisees are a net worth and available liquid cash each valued between $80,000 and $100,000. Absentee ownership is not allowed, but the company does provide training both at headquarters and at the franchisee’s location.

Wine and Design


True to its name, this studio welcomes corkscrews, cups and canvases. Wine and Design hosts individuals, groups and even a kids summer camp. The total investment for opening a Wine and Design franchise unit ranges from $35,800 to $83,000 and the initial franchise fee is 6 percent. The term of franchise agreement is the shorter than the previous studios: 5 years and renewable. Franchisees are required a net worth of $25,000 as well as $25,000 in liquid assets. Only 2 employees are needed to run each unit and absentee ownership is allowed.

Next Steps

If you’re considering a franchise investment or just have questions, feel free to contact one of our franchise specialists to learn more about the process and all the different franchise opportunities by completing our request form or calling 1-877-650-5551.

By Erin Cizek

2015 Predictions

Quick-service restaurants continue to dominate the franchising landscape. They make up over 20 percent of Entrepreneur’s 36th annual Franchise 500®.  Yet, three other business sectors combined account for one-third of the companies on the 2014 list. Can one of the following fast-growing sectors overtake quick-service restaurants with the most franchise companies in 2015?

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Maintenance Service

Maintenance service franchises account for 12.6 percent of the Franchise 500®. What makes these franchises so popular? For one, they have low start-up costs, most of which are for purchasing tools and supplies. Many maintenance franchises, (especially cleaning ones), can be operated out of the owner’s home. They’re ideal for people who dream of owning a business but have a limited budget on which to operate it. Residential cleaning and restoration services are increasingly popular. So are businesses that offer environmentally friendly solutions for cleaning, pest control and odor elimination.

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Personal Care

Tied with the maintenance sector at 12.6 percent of the Franchise 500® is the personal care business sector. Fitness franchises have 21 companies on the list while senior-care companies have 23. Fitness studios are becoming more popular than the big-box gyms. Potential franchise owners find their lower costs more attractive than those for the big-box gyms. Start-up costs for one-third of the fitness franchises on the Fortune 500® are less than $100,000.

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The highest ranked senior-care franchises have been around for at least 15 years. However, America’s aging population is motivating entrepreneurs to introduce new products and services in this sector. Home-accessibility equipment and patient advocacy are just two of the developing industries. People looking for a franchise opportunity in an emerging business should look into senior-care possibilities.

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Children’s Businesses

Parents love to invest in their children. Everything from preschools to tutoring services to other programs that supplement traditional education are increasing in popularity. That’s why children’s business franchises make up 8.2 percent of the companies on the Fortune 500®. One of the hottest segments in this sector is STEM (science, technology, engineering, and mathematics). Tutoring franchise Mathnasium showed impressive growth in 2014 and made it into the top 100 for the first time.  Another popular franchise is Bricks 4 Kidz, a Lego engineering company that’s one of the youngest companies on the list.

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So is it possible for one of the three fastest growing sectors to overtake quick-service restaurants as king of the franchises?  If any of them can, it might be the personal care sector. Growth has slowed in the maintenance franchise sector due to high-profile lawsuits filed by franchisees, which are exposing some of the industry’s unsavory business practices. Children’s businesses are growing but still trail quick-service restaurants by more than 10 percent. The personal care has a lot of ground to cover to overtake quick-service restaurants, but innovative products and services and a growing need to support the country’s longer living population might give this sector the impetus it needs to become number one.

Next Steps

If you’re considering a franchise investment or just have questions, feel free to contact one of our franchise specialists to learn more about the process and all the different franchise opportunities by completing our request form or calling 1-877-650-5551.

By Annie McGreal