should you invest in a franchise?

how franchises work

A franchise is a business you own and operate, but under someone else’s proven brand, systems, and support.

In exchange for an upfront franchise fee and ongoing royalty payments, you get the right to use their name, marketing, operational systems, and often gain access to negotiated vendor relationships, training, and support.

Think of franchises like McDonald’s, Chick-fil-A, Anytime Fitness, or Dog Training Elite—brands that are recognized nationwide but owned by local entrepreneurs.

But here’s the catch: franchising isn’t for everyone, and not all franchise brands are created equal.

why people choose franchises: the top 5 advantages

1. you start with a proven system

   Instead of figuring out a business from scratch, franchises give you a complete playbook—with marketing strategies, operations guides, and established processes.
   
   The good franchises have spent years (and millions of dollars) perfecting what works and what doesn't—so you don't have to.
   
   ‍Pro Tip: Look for brands that offer ongoing training and operational coaching, not just a start-up playbook.

2. Built-in Brand Recognition (You Start With Customers)

   One of the hardest things about starting a business is getting customers to trust you. With a franchise, you borrow that trust from day one—because people already know and love the brand.
   
   If you open a Chick-fil-A, you’ll have customers lining up from day one. If you open a newer brand? It better come with a strong marketing system to generate that demand.

3. Faster Path to Revenue & Profit

   Because you’re using a proven model and brand, franchisees typically start generating revenue faster than independent startups. The systems are optimized for growth—meaning you can focus on scaling, not experimenting.
   
   ‍Especially if you're transitioning out of a job, this faster path to cash flow can be critical.

4. Franchisee Support: You’re Not Alone

   Owning a business can be lonely and overwhelming—especially when challenges hit. Good franchises give you ongoing support: marketing help, operational coaching, tech tools, and access to a network of other franchisees who’ve been there and done that.
   
   ‍Lesson: Make sure the franchisor has dedicated, accessible support teams, not just a sales team focused on selling more franchises.

5. Scale and Grow Through Multi-Unit Ownership

   Many franchise owners go on to open multiple locations, creating real wealth and passive income. In fact, 60% of Anytime Fitness owners now own multiple gyms, building multi-million-dollar portfolios.
   
   This is one of the biggest upsides to franchising: scalable growth.

the downsides of franchising (that nobody talks about)

1. it can be expensive

   Most franchises require an upfront franchise fee (which can range from $20,000 to $100,000+), plus startup costs (buildout, equipment, inventory).And then you’ll pay ongoing royalties—usually 4% to 8% of gross sales—plus national marketing fees.
   
   ‍Pro Tip: Before investing, make sure the unit economics make sense—that your revenue minus expenses still gives you strong profit potential.

2. You Don’t Own the Brand—You License It

   This means you must follow strict brand standards, pricing, approved vendors, and marketing guidelines.
   
   If you like full creative freedom to "do things your way," franchising may not be the right fit.

3. The Wrong Brand Can Wreck You

   Not all franchises are well-run. Some are too young and unproven, others are cash grabs—selling locations without strong systems.
   
   This is why due diligence is crucial. (More on this below!)

4. Ongoing Royalties and Fees Add Up

   Even when you’re profitable, royalties and fees continue.
   
   Great franchises justify these fees with strong support—but some don’t, and franchisees are left frustrated, paying for a brand that isn't delivering value.

5. Lack of Franchisee Profitability Focus

   Unfortunately, many franchise brands focus more on selling new locations than helping existing owners make money. If franchisee profitability isn’t a top priority, walk away.
   
   At Better Days, this is one of our top vetting criteria when evaluating a franchise.

who franchising is right for

People looking for a proven roadmap to business ownership

Those who want support, training, and mentorship

Investors interested in scaling beyond one location

People who want to skip startup guesswork and get to revenue faster

Those who value collaboration and being part of a bigger brand

who franchising may not be right for

People who want total creative freedom

Entrepreneurs unwilling to follow someone else’s system

People looking for passive income from day one (Franchises take effort to build)

People who don’t want to invest both money and effort

3 Critical Things to Look for in a Franchise(Our FranCheck™ Method)

1. Strong Unit-Level Economics

   If franchisees aren’t making money, what’s the point?
   
   We analyze Item 19 of the Franchise Disclosure Document (FDD) to see real earnings data—and talk to actual franchisees to verify.

2. Experienced Leadership Team

   Does the franchisor team have experience growing and supporting franchisees? Or are they learning as they go?
   
   We only recommend brands where leadership has a track record of success—not just good marketing.

3. Industries with Real Growth Potential

   Some industries are booming (like home services, pet care, wellness)—others are fads. We focus on franchises in industries with real, long-term demand, high margins, and scalable models.

bonus: what about emerging brands?

Some of the best opportunities are in brands you’ve never heard of—emerging franchises with open territories and explosive potential. But this also comes with more risk.

That’s why we only recommend emerging brands that pass our rigorous FranCheck™ system—with proven models and happy franchisees.