Buying and Running a Franchise

Learn what you really buy when you buy a franchise: the two sides of the deal, the playbook, the three main fees, the FTC's three-part test, how licenses and business opportunities differ, and why franchises can still fail.

Learn how to read a Franchise Disclosure Document: the 14-day rule, the 23 items, the money in Items 5 to 7, earnings claims in Item 19, the people to call in Item 20, the franchisor's lawsuits, bankruptcies, and finances, and the states that add registration.

Learn how to choose a franchise that fits you: match it to your money, skills, and life, call current and former franchisees, read Items 11 and 12 on training and territory, spot red flags, and ask brokers who pays them.

Learn how to read a franchise agreement before you sign: Item 17 as your map, term and renewal, how the deal can end, selling and the right of first refusal, non-competes and required suppliers, the personal guarantee, dispute terms, and why "standard" doesn't mean "just sign."

Learn how people pay for a franchise: budgeting for Item 7's total, the franchisor's money minimums, SBA-backed loans, other funding options, ROBS, and why a cash reserve matters.

Learn what the first stretch of running a franchise looks like: the time from signing to opening, training, royalties paid on sales, a worked monthly example, running by the manual, multi-unit deals, and planning your exit.

Learn what it takes to franchise your own business: proving the concept, protecting the trademark, the FDD and its updates, audited financials, state registration, what it can cost, the operations manual, and a franchisor's legal duties.