Investing in Your First Franchise: What to Know 

Posted by digiadmin on April 12, 2023

For many individuals, the business world means many things. It represents independence, being their own boss, and achieving their dream of success through entrepreneurship as many have the world over. For those who are looking to own a business and get on the path to success, franchising provides a wealth of opportunities. If you’ve ever been curious about franchising and are unsure of where to begin, this guide will be quite helpful. 

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How do I Afford a Franchise? 

While there are hundreds of franchises in dozens of industries, one factor that ties them together is the necessity of funding. In addition to a one-time franchise fee and a required amount of liquid capital, there is also an investment cost that can run between five and seven figures, depending on the type of franchise you are buying. This is a major financial decision, and there are a variety of ways in which you can secure the necessary capital. One of the most common ways that people secure funding is through loans granted by the small business administration. Other common methods are using your 401(k) assets or having outside parties invest in you and your business for a portion of the profits you generate. If you have good credit, you might want to consider obtaining a loan from a bank, credit union, or other financial institution. 

Are All Franchises Successful? 

While many individuals have found success in the franchising world, nothing is guaranteed. One of the most important things you can do is undertake a considerable amount of research into which franchises are the most profitable and the expected length of time until a new franchise unit breaks even. If you’re working with a franchise broker – and we highly recommend that you do – you will need to do a territory check to confirm that the franchisor will allow a new unit to operate in a specific location. Before starting down this path, take inventory of your personal strengths and skills and compare to the franchisor’s description of the ideal franchise owner. Your franchise broker is a wealth of information and support in helping you narrow down your options and find the best fit. After completing the investigation process and discovery day with the franchisor you will learn whether the franchisor has decided to award a franchise to you. 

Taking the Next Step…

If you are awarded a franchise, your next steps will include finalizing funding, comprehensive training, and following an operations manual to learn how to run your new business. You will also receive support from the franchisor in hiring, marketing, and following their timeline for your grand opening 

Your Opportunity Awaits…

If you’re looking to seize the opportunities that the franchising world offers, FranSave can help. For more information on how we can be of assistance, visit us at

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This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your jurisdiction. Franchise offerings are made by Franchise Disclosure Document only.

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