Sandler

Franchise fee: $44,000 to $59,000 depending on territory.

Royalty: 8% of gross revenues — among the higher rates in the franchise universe, especially notable for a services business where margins are primarily labor (your time). There is no disclosed advertising fund contribution; instead, franchisees invest in local marketing and networking independently.

Total investment: $77,500 to $102,250. This is a home-based or small-office operation — no specialized equipment, no retail buildout, no inventory. The investment is weighted toward the franchise fee, initial training, and first-year operating expenses while you build your client base.

Sandler's Item 19 covers 107 of 138 franchisee-owned businesses that were active for the full 2024 calendar year. Average annual gross revenues: $737,851. Median was not separately disclosed. Only 32% of franchisees exceeded the average — meaning the top performers significantly drag the average up, and the typical franchisee earns below $737,851.

At $737,851 and 8% royalty, annual royalties are $59,028. Training businesses typically run 60–75% gross margins (your cost is primarily your own time, travel, and materials). At $737,851 revenue and 70% gross margin, gross profit is $516,496 — minus $59,028 royalty, minus marketing costs, minus any subcontractors, the income for a sole-practitioner Sandler franchise can be substantial. But only if you've built a strong client pipeline.

Sandler franchises reward longevity. The FDD's 107-franchisee sample reflects established owners — new franchisees typically take 18–24 months to reach sustainable revenue.

Sandler's US system has held at 138 franchised businesses over the reporting period — flat but stable. The Sandler methodology has been in the market for over 50 years and has genuine brand recognition among corporate sales organizations. Unlike retail franchises, professional services franchises don't require physical expansion to generate value — an established 10-year Sandler franchisee with a loyal corporate client base is a valuable asset even at the same unit count.

B2B sales training is a counter-cyclical spend in some sense: economic pressure often increases rather than decreases corporate training investment, as companies look to improve close rates with existing teams rather than add headcount.

The 8% royalty on a professional services business is a meaningful burden when you're the primary revenue-generating asset. Unlike a restaurant royalty where there are hundreds of transactions, your Sandler business might have 20–40 client engagements per year at higher average contract values. An 8% royalty on a $50,000 engagement is $4,000 — a real cost that affects your pricing flexibility.

The 32% above-average rate reveals significant variance among franchisees. In professional services, this variance is almost entirely driven by the franchisee's existing professional network and sales ability — not the brand, not the territory, not the methodology quality. If you don't have strong pre-existing relationships with mid-size business owners and sales leadership, your ramp will be longer and harder than the average suggests.

Sandler franchises are not passive investments and are not easily delegable. The value of the relationship is you, not the business entity. If you get sick, take time off, or want to sell, the business's value is primarily the methodology license and client relationships — which are hard to transfer compared to, say, a restaurant or a retail location with identifiable assets.