What Is Net Worth?
Net Worth, simply defined, is: Your Assets Minus Your Liabilities. Franchisors have specific financial requirements in order for you to become a franchisee. Most franchise brands usually require at least $200,000 to $250,000 in Net Worth. The reason is that if you are going to have the financial power to move the company forward, you may need more capital for advertising, marketing, etc.

What Is Liquid Capital?
Liquid Capital is the amount of money either in your bank account(s) or converted from stock or a 401k plan. Franchise brands typically require a minimum amount of capital (cash) available. Typically, most brands have a minimum liquid capital requirement of at least $80,000 and sometimes more in some cases.

What Is The ‘Typical’ Franchise Process?
Most every franchise has a process. The process will vary depending on the brand, but it is typically like this:
An initial brief introductory telephone call with the franchisor.
Sometimes a second longer telephone call with the franchisor to really dive into the brand concept.
You will be provided with the Federal Disclosure Document (FDD).
You will go through a series of telephone calls, webinars to go over things like training, business development, marketing, technology, support.
Validation calls to other existing franchisees – to really hear how others like the brand and how they are doing in the business.
Interviews with senior management (CEO, etc.) of the brand.
Discovery Day – to meet the brand’s team.
Awarding of the franchise.
Again, this is just an example of a typical process – but it can vary.

What Is The Federal Disclosure Document (FDD)?
The Federal Trade Commission governs disclosure of essential information with respect to the sale of franchises. The FDD provides extensive essential information about the franchise brand and organization to help potential franchisees make an informed decision on their investment.

What Is Discovery Day?
Discovery Day allows a potential franchisee to meet the team of the brand, usually at the brand’s headquarters, to really ‘get to know each other better’ and make sure there is synergy.

What Is The Typical Training Like?
Most all franchisors provide extensive, comprehensive training and support. Each franchise varies in length and content for training.