Question 1

How does a franchise consultant get paid?

Accepted Answer

We're paid by the franchise brands when one of our candidates becomes an owner — exactly like a recruiter is paid by an employer. Our service is 100% free to you, and we earn the same fee regardless of which brand you choose, so our incentive is to find the right fit.

Question 2

Do I have to use one of your brands?

Accepted Answer

No. We work with 230+ vetted brands across most industries, but you're free to pursue any opportunity. Even if you bring us a brand we don't represent, we'll still help you evaluate it.

Question 3

What is an FDD?

Accepted Answer

The Franchise Disclosure Document is a federally required filing every franchisor must give prospective franchisees at least 14 days before signing. It contains 23 'Items' covering fees, litigation, financials, territory, and existing franchisee contact info. Reading the FDD carefully — especially Items 7 (costs), 19 (financial performance), and 20 (franchisee list) — is the single most important diligence step.

Question 4

What's the difference between royalty and ad fund fees?

Accepted Answer

Royalty (typically 5–8% of gross sales) is what you pay the franchisor for ongoing brand and operational support. The ad fund (typically 1–3%) is pooled with other franchisees to pay for national marketing. Both are recurring and should be modeled into your unit economics.

Question 5

How much money do I really need to start?

Accepted Answer

Most franchises require a minimum of $50K–$100K in liquid capital plus a $250K+ net worth, with total project costs ranging from $100K to $500K+. With SBA financing, you typically only need 20–30% of the total down. See our funding page for a calculator.

Question 6

Owner-operator vs semi-absentee vs passive — what's the difference?

Accepted Answer

Owner-operator means you work in the business full time. Semi-absentee means you keep your day job and hire a manager (typical for service brands like cleaning, fitness, or home services). Passive (truly hands-off) is rare and usually requires a multi-unit commitment with a regional manager structure.

Question 7

What is territory protection?

Accepted Answer

An exclusive geographic area where the franchisor agrees not to sell another franchise of the same brand. Definitions vary widely — some are by zip code, some by population, some by drive-time. This is a critical Item 12 of the FDD to scrutinize.

Question 8

How long does the process take from interest to opening?

Accepted Answer

Discovery (talking with us, picking 1–3 brands): 2–4 weeks. Brand discovery process and FDD review: 4–8 weeks. Funding approval: 4–10 weeks (parallel). Site selection, build-out, training, and grand opening: 3–9 months depending on the model. Mobile/home-based brands open fastest; brick-and-mortar takes longest.

Question 9

What's a Discovery Day?

Accepted Answer

An invitation-only visit (usually 1–2 days) to the franchisor's headquarters where you meet the leadership team in person before signing. Both sides are evaluating fit. You're not committed until you sign — but most brands won't award a franchise without one.

Question 10

Can I own multiple units or territories?

Accepted Answer

Yes — and most successful franchisees do. Many brands offer 'area developer' or 'multi-unit' deals with discounted franchise fees for committing to 3+ units. We can help you structure a multi-unit plan.

Question 11

What if I've never owned a business before?

Accepted Answer

That's the majority of our candidates. Franchising exists precisely so first-time owners get a proven system, training, marketing, and support. The brands we work with all train new owners from scratch — usually 1–4 weeks of classroom and field training.

Question 12

Are franchise earnings claims (Item 19) reliable?

Accepted Answer

Item 19 financial performance representations are legally regulated — franchisors can only publish numbers they can substantiate. But they often show top-quartile or 'open at least 12 months' subsets. Always validate by calling 5–10 existing franchisees from the Item 20 list and asking specific revenue and profit questions.

Question 13

What happens if a franchise fails?

Accepted Answer

You're personally liable for SBA debt, lease obligations, and supplier contracts. This is why honest diligence on Item 19, validation calls, and conservative financial modeling matter so much. We help you stress-test the model before you sign.

Question 14

Can I sell my franchise later?

Accepted Answer

Yes. Most agreements allow resale subject to franchisor approval of the buyer (Item 17 of the FDD). Established brands often have a built-in resale market and broker network. Building a 5+ year operation typically yields a 2–4x EBITDA multiple at sale.

Question 15

How is Think Franchise different from a brand's recruiter?

Accepted Answer

A brand's internal recruiter only sells you that brand. We represent 230+ brands and have no incentive to push any particular one. We act as your guide through the entire process — discovery, FDD review prep, validation, funding, and signing.

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