Buy a Franchise

People only picture fast food; service franchises (cleaning, home care, fitness) can start far cheaper.

1. 1

   Set your true all-in budget

   Franchise fee plus buildout plus 6 to 12 months of living expenses. Lenders typically want 10 to 30 percent down, so know your number before falling for a brand.

2. 2

   Shortlist three in one category

   Compare three franchises in a category you would actually run daily, like home services or senior care. Service franchises start far cheaper than food.

3. 3

   Study the FDD line by line

   Item 7 shows the real investment range, Item 19 shows earnings claims, Item 3 shows lawsuits. You get a mandatory 14 day review window; use all of it.

4. 4

   Call 10 franchisees

   Current and former owners are listed in the FDD. Ask real revenue, real hours, and whether they would buy again. This call list beats every sales pitch.

5. 5

   Arrange financing

   SBA 7(a) loans are the standard route for franchises in the SBA directory; ROBS and franchisor financing are alternatives. Get prequalified before discovery day.

6. 6

   Sign with a franchise attorney

   Attend discovery day, negotiate what is negotiable, and have a franchise attorney review the agreement before you sign. Then complete the franchisor's training program.

7. 7

   Launch on the playbook

   Run the grand opening marketing plan and follow the system exactly for the first year. You paid for a proven playbook; deviating early is how buyers waste it.