Yampa Sandwich Co. Blog

How Much Does a Franchise Owner Make? And Other Key Questions

Investors ask many questions when considering undertaking franchise ownership. While not necessarily the first question on the list, this one is certainly one of the most important: how much does a franchise owner make? The answer is, it depends.

How Much Does a Franchise Owner Make?

According to the Southern Council, the average franchise owner’s salary ranges between $75,000 – $125,000 per year. Much of this depends on the type of franchise being considered, along with numerous other factors.

There can also be big variations in the average income of a franchise owner, with a small number of top earners making more than $250,000 per year. This can potentially skew the results for what the annual income average truly looks like.

There are also franchise owners who have multiple locations that accumulate profits, increasing how much a franchise owner makes.

How much does a franchise make per year also does not take into account other valuation factors, such as equity in both the real estate of the location or the franchise’s brand value?

Are Franchise Earnings Guaranteed?

As with any business venture, nothing is truly guaranteed. Several factors can influence the growth of a franchise and how much a franchise owner makes, including location, the target market of the area, and the local economy.

With careful consideration to location and guidance from the franchisor—who’s done the research on where their stores might achieve the most growth and increased sales—franchise owners can get a leg up in the earnings department.

With a franchise investment, there are several advantages.

The Business Plan is Already Mapped Out

Any new business needs to know what market they’re targeting, what products their market demands, and how to deliver those products to their customers.

With a franchise, these are known quantities, so the focus can move ahead to training and opening the new location much faster, which improves how much a franchise owner makes.

The Brand is Recognizable

With a franchise investment, the franchise owner is buying access to the trademarked name and proprietary processes for running the business.

For food franchises, this includes recipes and carefully guarded ingredients. When customers already know the brand, there’s no need to get a new name or menu out there.

This saves each franchise owner time and potentially money, contributing to how much a franchise owner makes. Brand recognition can bring extra value, no matter how new the individual location of the franchise is.

Support from the Franchisor

New franchise owners may be taking on some risk when purchasing a franchise, but they’re not shouldering all of it. The brand has as much of an interest in the new franchise location’s viability as the franchise owner does.

As such, the franchise development team provides guidance with training, store opening, technology for day-to-day operations, and marketing to the local residents.

These can be a big help, particularly for owners who are new to franchising. This level of guidance helps to ensure franchise owners have a smooth grand opening and support for their ongoing business, which helps to potentially impact how much a franchise owner makes.

How Much Does a Sandwich Franchise Owner Make?

For investors looking to open a sandwich franchise specifically, what do those numbers for a franchise owner’s salary look like? The short answer is also that how much a franchise owner makes a year can vary.

Mobile Cuisine lists the average salary of a Subway franchise owner at $31,000 per year, but sources across the internet show a wide range of incomes. Mashed.com states that Jersey Mike’s franchise owners make an average of $73,000 per year.

The sandwich franchise market is as diverse as the sandwiches themselves, and with that are variations in how much a franchise owner makes.

Where Subway paved the way in the 1990s and 2000s as an alternative to burgers and fries, other sandwich companies have pivoted off that model to distinguish themselves.

The Yampa Sandwich Co. philosophy is to serve crave-able sandwiches with unique, healthier ingredients that contain no hormones, antibiotics, chemicals, additives, or pesticides for adventurous folks looking for healthy, portable sandwiches.

Available potential franchise owner financial information is disclosed in the Franchise Disclosure Document (FDD).

Based in Colorado, the flagship location of Yampa Sandwich Co. in Steamboat Springs has been in business for 20 years.

Owners Peter Boniface and David Pepin refined the business during that time and are now expanding through franchising throughout Colorado and beyond the Rocky Mountains.

How Much Does It Cost to Open a Franchise?

The Yampa Sandwich Co. franchise is one of the more competitive in the sandwich franchise market in terms of cost. The initial investment total ranges between $295,750 to $527,900 for one location, which includes the $25,000 franchise fee.

Yampa Sandwich Company locations also pay a royalty fee of 5% of gross sales, plus a $150 monthly technology fee, which allows us to fund ongoing support services to our franchise owners.

There is also a monthly marketing fee of 1% of gross sales, which is collected to develop marketing strategies across the Yampa Sandwich Co. brand and develop local marketing campaigns and materials.

The Yampa Sandwich Co. Concept Has Far-Reaching Potential

Yampa Sandwich Co. started as a brand dedicated to the delivery of high-quality, natural, harm-free menu items intended for adventurous customers taking portable food on hiking trails and outdoor adventures in the high country of Colorado.

This concept has the potential to expand as the American consciousness of what constitutes good quality food evolves.

Americans are more careful about what their food contains, what they’re feeding their children, and how those choices impact their health. The Yampa Sandwich menu is full of crave-able options for discerning palates while delivering on the promise of healthier menu options.

So if you’re looking for a franchise opportunity with an established history that fulfills many of today’s demands for quality, sustainability, and delectable flavors, the Yampa Sandwich Company’s could be the one.

For more information on our business model, including how much a franchise owner makes, contact us today.