Frequently Asked Questions

What is a franchise?

A franchise is a business model where you operate under an established brand using its proven systems, processes, and support—while owning your own business.

Do I really own the business if I buy a franchise?

Yes. You own your individual business (usually an LLC or corporation), but you operate under the franchisor’s brand and guidelines.

How much does it cost to buy a franchise?

Investments can range from under $50,000 to over $1 million, depending on the industry, model (home-based vs. brick-and-mortar), and growth goals.

Glossary and helpful terms.

We’re here to support you! Our team is available to answer any questions you have. You’ll also have access to your dedicated financial advisor for guidance whenever you need it.

What is a franchise fee?

It’s a one-time upfront fee paid to the franchisor for training, brand access, systems, and support. Think of it as the “entry fee” to the business.

What are royalties?

Royalties are ongoing fees (usually a percentage of revenue or a flat fee) paid to the franchisor for continued support, systems, and brand use.

Are there franchises with no royalties?

Yes. Some models—like vending, licensing, or certain service concepts—have low or no ongoing royalties, but they often differ in support structure.

How long does it take to open a franchise?

Anywhere from 30 days to 12+ months, depending on the model, build-out requirements, licensing, and your timeline.

Do I need prior industry experience?

In most cases, no. Many franchises are designed for owners with business, sales, and/or leadership experience—not technical expertise.

Can I keep my full-time job?

Yes. Many franchises are semi-absentee/semi-involved or executive-style models where you hire a general manager and oversee the business. You will need to dedicate some time each week to manage the manager and review KPI’s.

What industries are most popular in franchising?

Home services, property management, health & wellness, senior care, pet care, fitness, children’s education, and food—especially non-traditional or simplified food concepts.

What is an Item 19?

Item 19 is the section of the Franchise Disclosure Document (FDD) that may include financial performance representations—like average revenues or profits.

Is financing available for franchises?

Yes. Common options include SBA loans, ROBS (401k rollovers), conventional loans, franchisor financing, and partnerships

What is a territory?

A territory defines where you can operate and market your franchise. Territories can be geographic, population-based, or protected.

How do I know if a franchise is a good investment?

Through due diligence: reviewing the FDD, speaking with existing franchisees, understanding costs, timelines, and aligning the business with your goals.

What support do franchisors provide?

Typically training, marketing systems, operations manuals, technology, coaching, and ongoing guidance—support varies by brand.

What is a Discovery Day?

It’s a meeting (virtual or in-person) with the franchisor’s leadership team where you learn more about the brand and they evaluate you as a candidate.

Can I sell my franchise later?

Yes. Most franchises allow resale, subject to franchisor approval and transfer fees.

What are the biggest risks in franchising?

Under-capitalization, choosing the wrong model for your lifestyle, poor territory selection, and not following the system.

How long before a franchise becomes profitable?

It varies widely. Some service franchises cash-flow in months; others may take 12–24 months or longer.

Why work with a franchise consultant?

A consultant helps you clarify goals, compare brands objectively, navigate due diligence, and avoid costly mistakes—at no cost to you.

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