What’s Happening!

I hope you’re all enjoying summer as much as I am!

Today I’m breaking down what real franchises cost, what they actually make, and how fast they pay back. So you can skip the fluff and see if franchising is your fastest path to cash flow.

But first, I need you to mark your calendars!

Each quarter I do a month long deep dive on 1 of the 4 ways you can get into entrepreneurship:

1. Starting an Agency

2. Buying a Business

3. Franchising

4. Starting a Services Business

At the end, I host a webinar with a former guest to answer questions LIVE on the topic.

On THURSDAY (yes THIS Thursday!) June 26th, 1PM EST I’m hosting a LIVE webinar with Connor Groce to break down his franchise evaluation framework and answer your questions.

Totally free. Packed with value.

See you Thursday!

Let’s get into it, shall we?

How Much Money Can You Actually Make

What Franchises Really Cost (and Make)
This week, we’re talking hard numbers: startup costs, actual margins, ramp time, and whether these operators got what they expected.

From roofing to trash to chicken sandwiches; here’s what I learned after interviewing real franchise owners.

DISCLAIMER: I think each of these stories represent franchising at its BEST. None of this is “easy” or “passive” so please get educated if you are interested in franchising. See a message from a subscriber at the end of the newsletter about their terrible experience.

Clayton – Bumble Roofing Franchise (ex-Amazon)

Clayton left a $330K/year job at Amazon to launch a roofing franchise with zero roofing experience.

Investment: ~$90,000 (2 territories + truck + startup costs)
Revenue (3.5 months): $300,000
Expected margin: 20–25%
Actual margin: ~30%
Owner role: Full-time (sales + marketing + ops oversight)

Model:

• All production is subcontracted

• Franchisor provides CRM, backend support, and SOPs

• Clayton focuses on customer acquisition and leadership

Outcome:

• Profitable in the first few months

• Payback timeline: 6–9 months

• Margins matched or exceeded expectations

• Rapid scaling with a lean, replicable model

This is franchising at its best: clear playbook, big tickets, fast ramp.

Kevin – Smash My Trash

Investment: ~$250,000 (5 territories, truck, launch costs)
Annual revenue: $1M
Expected margin: 35–40%
Actual margin: ~40% (pre-debt), ~25% after debt service
Owner hours: 1 hour/day

Model:

• B2B recurring revenue from compacting commercial waste

• Route-based service with minimal equipment

• Small team, operational simplicity

Outcome:

• Business valued at $1.6M–$2M

• Built for cash flow and equity

• Exited tech job for a more passive business with asset value

Kevin did not start at 1 hour/day in the business. It has been a few years to ramp here but has gotten there through hard work and consistency.

Tim – Chick-fil-A Operator

Investment: $10,000 (operator fee only—no ownership)
Annual revenue (per store): $8M
Profit: $1.2M
Tim’s share: 50% → $600,000/year

Expected margin: Not disclosed
Actual comp: $600K/year as operator
Owner role: Intense. Tim interviews every hire himself.

Model:

• Chick-fil-A owns the store, you operate it

• Highly selective process (~60,000 applicants → 80 operators/year)

• You run the business as if it were your own—but you don’t own equity

Outcome:
Elite-level income, world-class brand, no capital risk but also no ownership upside.

Recap: What $90K–$250K Buys You in Franchising

The Big Idea

Franchising isn’t about innovation. It’s about execution.
If you want:
- Cash flow
- Playbooks
- Brand trust
- Fast ROI

Then a franchise might be your smartest bet.

Next Week — Part 4: How to Get Started in Franchising

Here’s what I’ll break down:

• The 3 questions to ask yourself before choosing a franchise

• How to actually find franchises

• What franchise brokers do (and how they get paid)

• Red flags to watch for in your first discovery call

This Week on Nikonomics

🎙️ Guest: Tim Sweetman
Business: Chick-fil-A franchise in Delaware serving 40K/month
Insight: Hiring is rigorous—Tim interviews every final candidate to preserve culture.
Model: Franchisee pays $10K to start, earns ~50% of profits with corporate handling real estate.

🔗 Listen Here: Nikonomics Episode 188 - Apple / Spotify

🎙️ Guest: Elizabeth Knopf
Topic: Meta's $14B minority stake in Scale AI + 4GW nuclear power deal
Insight: Meta is locking down AI talent and power—hiring Scale’s CEO and securing long-term energy for data centers.
Model: AI infra vertical integration—Zuck is betting big on in-house efficiency.

🔗 Listen Here: Nikonomics Episode 189 - Apple / Spotify

🎙️ Guest: Tom Stefanik
🏢 Business: $30M/yr influencer marketing agency, Small Screen
Insight: Influencers earn 72% more on average with reps like Tom—and 10K YouTube subs can be a full-time income.
Model: 20% cut to manage sponsorships, speaking gigs, product deals, and even book launches.

🔗 Listen Here: Nikonomics Episode 190 - Apple / Spotify

Subscriber Feedback

Some really good feedback from a listener on the downsides of franchising.

Ask Me Anything

Every week, I’ll be answering a question sent to me via Twitter, Speakpipe or [email protected].

Thank you for reading, please share with a friend!

Nik Hulewsky

Find me & Nikonomics on - Twitter, YouTube, Spotify, Apple