A common question from franchise investors: if the brand is the same, why does one franchisee make millions while another barely gets by? The answer says a lot about where the real risk is — and why choosing the business well matters more than the name on the storefront.

The brand brings real advantages: a tested model, training, support, and recognition. But it doesn't guarantee every franchisee the same result. Several factors influence each unit's performance — which is why analyzing the right franchise, aligned with your profile, makes such a difference.

A concrete example: a signage network

To illustrate, take an American brand in the visual communication segment — storefront signs, signage, and graphics. The investment in this type of business sits in the US$ 200,000 to US$ 300,000 range. It's a decades-old, highly consolidated network with more than 500 franchisees in the United States, plus international units.

The numbers below come from 312 American units, compiled by the network itself in the FDD (Item 19). One caveat: this data wasn't audited and doesn't follow a specific accounting standard — it serves to give a general idea of performance.

The overall average (312 units)

  • Average sales: about US$ 935,000;
  • Average EBITDA: about US$ 100,000;
  • Franchisee's salary: about US$ 88,000;
  • Average total earnings: about US$ 189,000 per year (EBITDA + salary).

For a US$ 200,000–300,000 investment, that's an attractive number. But the average hides a much more unequal reality.

Top 25% vs. bottom 25%

Separating the groups, the contrast jumps out. The top 25%: average revenue of US$ 1,253,000, operating profit around US$ 200,000, and a salary around US$ 165,000 — total earnings of roughly US$ 380,000.

Among the bottom 25%, average revenue fell to about US$ 568,000, with an almost negligible EBITDA (around US$ 600) and a salary around US$ 28,000. In other words: within the same brand, the earnings gap between the two groups exceeded ten times.

How to read this data

Averages and quartiles like these come from Item 19 of the FDD and are usually unaudited. They're a snapshot of the past and of those who reported — not a promise of results for your future unit.

What explains such large differences

  • The franchisee's profile and commitment — perhaps the most decisive factor;
  • Location and territory of the unit;
  • Day-to-day management quality;
  • Time in operation — older units usually carry a built-up client base.

The practical conclusion

The brand gives you the floor; what you build on it depends on fit and execution. That's why our selection starts from your profile — matching your skills, dedication, and capital with models where people like you have thrived. It's the difference between buying "a franchise" and choosing your franchise.