Franchising Explained: Costs, Earnings & Growth
6/1/202629 min
We sit down with franchise consultant Dr. Tom Dufour to get honest about what franchising really is and why it is not a set-it-and-forget-it income stream. We break down how to tell if a business can franchise, what fees and royalties actually look like, and what makes franchise systems succeed or fall apart over time.
• franchising as a growth and distribution method rather than a business type
• why “passive income” still requires training, support, and real operational work
• three franchisability checkpoints: profitable prototype, teachable operations, national demand
• how master franchising can make international expansion easier to manage
• typical royalty rates, franchise fees, and how sales get tracked with modern tech
• protecting the brand through manuals, standards, and ongoing coaching
• common franchisor and franchisee mistakes including unrealistic expectations
• exit paths for franchisees including selling the unit, renewals, and early termination risks
• why the best franchisors stay franchisee-first and what changes under investor ownership
• where franchise leads come from: internet marketing, referrals, and franchise brokers
If you want to hear more shows about entrepreneurs, business owners, and people building careers in all kinds of industries, check out our business and entrepreneurship category →
Connect with Dr. Tom Dufour:
Website: https://bigskyfranchiseteam.com
Linkedin: https://www.linkedin.com/in/tomdufore/
"How Much Can I Make?" Is nominated for 2026 Women in Podcasting Award!
Music credit: Kate Pierson & Monica Nation
Clips
Transcript preview
First 90 secondsTom Dufour· Guest0:00
[upbeat music] So I have a client called Shubh Beauty. When I started with him, he had just a few locations, and now he's got 100-plus operating, and no one's probably ever heard of him, and he does eyebrow threading. You know, that's his franchise. Who would've thought of that? They franchise that? They've got 50 of those or 100? That's amazing.
Mirav Ozeri· Host0:18
[upbeat music] Hi, welcome back to How Much Can I Make?, the podcast all about jobs and careers. I'm your host, Merav Ozery. Before we start today's show, I wanna tell you that next week's episode is with Nuta Gutier, who started a Thai spa business with just $1,000 and grew it into eight locations and 13 franchise spas. So today's conversation ties in perfectly because I'm talking with Dr. Tom Dufour, a franchise consultant who has helped hundreds of businesses grow through franchising. So let's turn to my conversation with Tom and find out how the business of franchise really works. Tom, thanks for coming on the show. So let's start by telling us what exactly you do as a franchise consultant.
Tom Dufour· Guest1:06
What I do with franchising is I work primarily with what I describe as successful entrepreneurs, and I help them franchise their businesses. So typically, it's a founder-led organization, and they've created a, a successful business of some kind. They say, "I wanna grow," or, "I, I think I wanna do this." And so franchising is one of those options to expand,