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Franchisees Are Using Revenue Sharing to Recruit Top Managers
A growing number of multi-unit franchisees are using revenue-sharing agreements instead of straight salaries to attract and retain top general managers. This episode examines a specific case: a five-unit Jimmy John's operator in Ohio who gave his best store manager a 10% share of store-level revenue above a baseline, boosting manager tenure from 14 months to over three years and lifting same-store sales by 8% in the first year. Lucas and Luna break down the mechanics, the tax implications, the potential pitfalls, and why this model is spreading beyond fast food into service-based…
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