How franchising works, minus the brochure

No. Franchisors pay us when a match is made. Your franchise fee is the same with us or without us, so the only thing you spend is time.

Add the franchise fee (often $25,000 to $50,000), the build-out or equipment, and 6 months of working capital. Service businesses with a truck can start under $150,000. Food and fitness with a lease often run $300,000 to $700,000. We give you a real number for each brand, not a range on a brochure.

Some, yes. We ask one question of every franchise before we show it to you: what part of this can't be done by a laptop? If the honest answer is "the marketing" or "the app," we pass. If it's "the part where a person shows up and you trust them," we keep reading.

A franchise disclosure document (FDD) is the legal document every franchisor must give you at least 14 days before you sign or pay. It has 23 sections, called Items, covering fees, lawsuits, financials and how many units opened and closed. We've read 140 of them so you can read one carefully.

Item 19 is where a franchisor can show what its units earn. It's where the money is, and it's also where numbers get selective. We check which units are in the figure and which aren't, then call owners to see if reality matches.

Item 3 lists litigation. One lawsuit isn't a red flag. A pattern of franchisees suing the franchisor is. We read it with you and explain what's normal and what isn't.

Validation means calling current and former franchisees to hear how it's really going. The FDD lists them. We help you pick who to call, what to ask, and how to read the answers, including the ones people don't say out loud.

Usually 60 to 120 days. That covers learning, narrowing brands, reading FDDs, validation calls and a discovery day with the franchisor. Rushing it is how people end up in the wrong business.

A territory is the area where a franchisor agrees not to put another unit of the same brand. Good territories are defined by population and households, not just ZIP codes. Territories do sell out, and we'll tell you only when it's true.

Yes. We work with single-unit, multi-unit and area representative buyers. Multi-unit deals need more capital and a plan to hire managers, and we'll show you what that looks like before you commit.

Most use a mix of savings, an SBA loan, a 401(k) rollover (often called ROBS), home equity or equipment financing. We introduce you to lenders who know franchising and help you see the monthly payment, not just the loan size.

Plan on a 12- to 24-month ramp for most brands and keep 6 months of runway. Anyone who promises faster without showing you an Item 19 that supports it is guessing.