This is one of the most important items in the franchise disclosure document because it shows you the actual performance of the current franchisees for the previous year.

I get this question a lot:

“Can I franchise my business if I don’t have a proven track record?”

And the honest answer is no.

Let me explain why.

 It actually is. It's regulated by the FTC and even in some states. But at the state level, this is actually a good thing. I

Thinking about franchising your business?

It’s exciting.

But also a bit overwhelming.

So, where do you start?

Typically, this looks like an FBC or franchise business coach or consultant who works with the franchisees helping them establish their business.

I was talking with someone recently who said,
“I want to buy a franchise, but what industries actually work best?”

It’s a good question — and one that has a bit of history behind it.

 Turnkey means that it is ready to go. Think about when you buy a vehicle—get into the car, turn the key, and then it operates. That's how a franchise system should run—it’s business in a box.

I was chatting with someone recently who asked:

“What’s the deal with corporate owned versus franchised locations?”

It’s a great question.

And the answer is pretty simple — but worth unpacking.

 A protected territory means that's your territory. You own it. You get to run that business in that area and no other franchisee gets to market in those zip codes or in that radius that you own.

Someone asked me recently:

“Is it possible for franchising to fail?”

And honestly, the answer is yes.

Like any business, franchising comes with risks.

 Before you can actually launch your business with the franchise you have to sign this agreement that outlines everything from opening costs to ongoing fees to your territory and your role in the business and the franchisor’s responsibilities in supporting you. It's all outlined.

A friend texted me this the other day:

“Hey… random question… do I actually need a lawyer to franchise my business?”

Short answer?

Yes.
Long answer? Also yes.

But let’s talk about why.

I was chatting with someone the other day who said,
“I want to own a franchise, but I don’t want to quit my job.”

Totally fair.

There’s actually a term for that kind of setup in the franchise world:

Semi-absentee.

But let’s talk about what that really means.

 Typically you're going to see onboarding training where they're going to help you set up your business. They're going to have an in-person training where you're actually getting in the field with the brand, learning all of the systems, learning how to actually do the work, learning how to manage a team inside of the brand.

Someone asked me this recently, right after a long meeting and two coffees:

“How do you know when a business is franchise ready?”

It’s such a good question.

Because it’s easy to get excited about the idea of franchising — new cities, new teams, new energy.

But readiness? That’s something you build.

And it usually takes longer than you think.

Most franchise brands have royalties in place—typically a percentage of revenue. They can be anywhere from four to even as much as fifteen percent and even higher sometimes.

If you’ve ever thought about franchising your business, you’ve probably asked:

“How does this actually work?”

It’s easy to get caught up in the idea — the logos, the website, the big map of future locations. But like anything worth doing, it happens in stages.

And it starts before anyone signs anything.

 A franchisee is someone looking to start a business but maybe doesn't want to do it on their own. They don't want to figure everything out for themselves.

A friend of mine recently told me they were thinking about buying a franchise.

We talked about startup costs, branding, location — all the usual stuff.

But when I asked,
“Have you done franchise validation yet?”
they just blinked at me.

So let’s talk about what that means.

A franchisor is someone who has an original business trademark and system that they then license to you as a franchisee allowing you to build the same type of business that you own in your city.