How to Get Prepared for Buying a Franchise
- Jason Revere
- Jun 23
- 5 min read
By Jason Revere www.revfran.com | jason@revfran.com | (904) 441-8670
Introduction: Why Preparation Is Everything
If you’ve ever dreamed of becoming your own boss, building wealth, and taking control of your time, franchise ownership might be your ideal path. But jumping into business ownership without a plan is one of the fastest ways to get overwhelmed—or worse, make a costly mistake.
That’s where Revolution Franchise Brokers comes in. We guide aspiring entrepreneurs through the entire process of finding, funding, and launching a franchise that fits their goals and lifestyle. Whether you're just starting to explore or actively looking for a franchise opportunity, this guide will walk you through the steps you should take before signing a franchise agreement.
1. Define Your Financial and Lifestyle Goals
Franchise ownership isn’t just a business decision—it’s a lifestyle choice. Before researching brands, it’s essential to define what success looks like for you, both financially and personally.
Short-Term Financial Goals:
How much income do you need to replace?
Are you planning to run the business full-time or keep your current job?
How quickly do you need the business to become profitable?
Long-Term Financial Goals:
Are you aiming to build equity?
Would you like to eventually own multiple units?
Do you want to build a business that can be passed on or sold?
Lifestyle Considerations:
How many hours per week are you willing to commit?
Do you want a home-based business or a storefront?
Are you open to managing employees or prefer solo operation?
Having a clear understanding of your goals helps ensure you choose a franchise that aligns with your desired outcome—and avoid those that don’t.
2. Develop Your “Why”
Your “why” is your personal motivation—the reason behind your desire to own a business. When things get tough (and they will), your why will keep you focused and committed.
Ask yourself:
Why do I want to own a business?
What am I hoping this change will do for my life?
Who will benefit from this new chapter?
Common motivators include:
Time freedom and flexibility
A desire to leave the corporate grind
Building generational wealth
Creating something of your own
Serving a community or cause
At Revolution Franchise Brokers, we help you connect your goals and motivations to franchise models that can realistically deliver on them.
3. Narrow Down the Right Industry
There are over 4,000 franchise brands in the U.S. alone. Without a strategy, it’s easy to fall into the “shiny object” trap—getting excited by big names or low entry costs without considering if it’s the right fit.
Considerations for Industry Fit:
What industries do you naturally enjoy or understand?
Do you want to work with people (B2C) or other businesses (B2B)?
Are you interested in trending or recession-resistant markets?
Do you want hands-on daily involvement or a semi-absentee model?
At this stage, a franchise consultant becomes invaluable. We use a proven assessment process to match your goals, interests, and risk tolerance with vetted franchise brands across industries like home services, fitness, wellness, childcare, automotive, and more.
4. Decide on a Start-Up Budget
Once you’ve defined your goals and narrowed your industry focus, it’s time to look at your finances. Knowing your total investment range helps narrow down realistic franchise opportunities.
Key Investment Factors:
Franchise fee
Initial equipment, supplies, and real estate (if needed)
Marketing launch budget
Working capital for 3–6 months
Royalties and ongoing fees
Typical Investment Tiers:
Under $100K (mobile, home-based, solo owner)
$100K–$300K (brick-and-mortar, employee-based)
$300K+ (larger buildouts, retail, restaurants)
Not sure what you can afford? We’ll help you explore funding options and determine what makes sense based on your comfort level and goals.
5. Set a Target Open Date
Setting a target launch date gives you a practical timeline and keeps your process on track. It also helps you coordinate funding, training, and business formation steps.
Sample Timeline:
Month 1–2: Discovery, research, and matching
Month 3–4: Validation, due diligence, funding
Month 5: Franchise awarded, entity setup
Month 6–8: Training, real estate, marketing
Month 9: Business launch
Keep in mind, some franchises move faster than others. If you want to open within a specific window, let us know early—we’ll help guide you to brands that match your desired pace.
6. Build a Business Buyer Persona Online
Believe it or not, franchisors do Google you. They want to ensure they’re awarding a franchise to someone credible, professional, and aligned with their brand values.
Optimize Your LinkedIn Profile:
Use a professional headshot
Update your headline to something like: “Exploring Franchise Ownership | Aspiring Business Owner”
Write a summary that includes your “why” and business goals
Highlight transferable skills (leadership, marketing, operations)
Engage with franchise content and connect with industry professionals
This small step can set you apart in a competitive applicant pool and demonstrates that you’re serious.
7. Apply for Funding
One of the biggest misconceptions about franchises is that you need to pay for everything upfront with cash. The truth is, there are many funding strategies designed specifically for franchise buyers.
Common Franchise Funding Options:
SBA Loans: Backed by the U.S. Small Business Administration, great rates and long terms
401(k) Rollover (ROBS): Use retirement funds tax and penalty free
Unsecured Lines of Credit: No collateral needed, fast approval
Home Equity Line of Credit (HELOC): Use your home's equity to fund your franchise
Investor Partnerships: Bring on a capital partner or silent investor
Revolution Franchise Brokers works with top funding partners and can connect you with the right fit. We’ll help you prep for loan applications and coordinate with franchisors to streamline the process.
8. Review the Franchise Disclosure Document (FDD)
Once you’ve identified a franchise you love and been awarded a territory, you’ll receive the Franchise Disclosure Document (FDD). This is one of the most important documents you’ll read during the process.
Key FDD Sections to Understand:
Item 7: Total estimated investment
Item 19: Financial performance (if provided)
Item 20: Franchisee list and turnover rates
Items 5 & 6: Initial and ongoing fees
Item 11: Training and support
Litigation and bankruptcy history
You don’t have to do this alone—we recommend reviewing the FDD with a franchise attorney, and we can refer you to one we trust. We’ll also help you ask the right questions during validation with current franchisees.
9. Set Up Your Business Entity
Once you’ve signed your agreement and secured funding, the final step is forming your legal business entity. The franchisor may have preferences, but most owners form an LLC or S Corp to protect personal assets and manage taxes effectively.
Steps to Form Your Entity:
Choose your business structure (LLC, S Corp, etc.)
Register with your state
Get an EIN from the IRS
Open a business bank account
Set up accounting and payroll systems
Obtain any local licenses or permits
If this part feels overwhelming, don’t worry—we have partners who can help with business formation, bookkeeping, and more.
Final Thoughts: You Don’t Have to Do It Alone
Buying a franchise is one of the most strategic ways to become your own boss—but it doesn’t happen overnight. The good news is that you don’t have to figure it out alone.
At Revolution Franchise Brokers, we provide free expert guidance to help you:
✅ Clarify your goals
✅ Match with the right franchises
✅ Access funding options
✅ Navigate the FDD
✅ Prepare for launch
Ready to Get Started?
Let’s talk! Book a free Franchise Discovery Call and take the first step toward your new future.
📞 (904) 441-8670
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