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Log In / Register | Apr 23, 2018

What Franchisor Managers Make

Here's a rare opportunity to glimpse into the lucrative salaries among franchisors. Before FranData came along, according to the fact-gathering firm, franchisors had relied largely on "hearsay and back-alley information" in setting pay levels. FranData's CEO, Darrell Johnson told the Wall Street Journal that his salary survey is the first-ever glimpse at how rewarding careers can be at franchising firms.

The best-paying managerial jobs were in the full-service restaurant industry, the lowest-paying in retail products and services.  Managers in food-related franchises in general tend to be paid more than those in other fields, a differential Mr Johnson attributes to "the more complex nature of food-handling businesses".

FranData also found that franchisers with more than 500 units have the highest base pay.

By specialty, the highest-paid managers were those running legal departments or overseeing site selection for a franchise's outlets.  The average annual pay of a franchiser general counsel, excluding benefits, was $US131,222 ($190,161) for the 12 months ended July 1.  The average pay for someone managing site-selection and pre-opening activities was $US130,690.

Next came managers of field operations, those charged with making sure franchised businesses are working properly and dealing with daily issues that franchisees face. Average annual salary for that post was $US111,407.

Managers of franchise development rank fourth, with average annual salary of $US109,523, followed by those directing marketing efforts, at $US106,308.

After that, there's a big pay gap. Managers of franchisee training averaged $US79,300 in annual salary, the survey found.  The lowest-paid managers by function, at $US72,968, were those in charge of compliance - making sure that franchisees carry out their contractual obligations. [via WSJ]

In a restaurant chain, that could mean whether operators are hewing to local health and cleanliness ordinances, and making sure employees' work papers are in order.

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