How do you like franchises?

intermediary profile

September 02, 2025

by an intermediary from University of Georgia in Atlanta, GA, USA

At ClearSky Equity Advisors, we sell franchise as well as independent businesses. We have a niche in the home services industry, but we will work with other industries if it is a good fit. We understand the cost of being a franchisee (royalties), but do you see it as a benefit to operate in a franchise system? Franchisors will train, audit, and mentor your business. Benefits that an independent business owner may or may not use. There is also a community in the brand that can offer support and best practices. BUT, it comes at a cost. Is it worth the royalties to be in a franchise?
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commentor profile
Reply by a lender
from University of Missouri in Denver, CO, USA
I think it is for a strong franchise. I typically look at the FUND report for a franchise which will tell its historical success rate, resale level, revenue growth, financial strength, etc
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