Questions I get before someone signs
Buyers ask the same handful of questions once the brochure is closed. These are the answers I give from Mount Pleasant, after building 30 franchise locations across four brands and selling to private equity.
They are short on purpose. If a concept is wrong for you, I will say so. The longer file read lives in FDD red flags I learned the hard way and how I read an FDD in 20 minutes.
How much liquidity should I retain after opening?
The cash you should still have the morning after opening is not the Item 7 total. Item 7 is the franchisor's estimate of what it costs to get the doors open, and the working-capital line inside it is usually a short, tidy ramp.
What does semi-absentee really require?
Semi-absentee means the unit can run a normal Tuesday without you behind the counter. It does not mean the business runs itself, and it does not mean a Sunday dashboard is ownership.
How do I validate Item 19?
Item 19 is the only place a franchisor may put a financial performance representation in the FDD, and only if they choose to make one. The FTC does not require them to make one.
Franchise startup vs buying an existing business
A franchise startup buys a system, a brand, and a ramp you have to fund. An existing business buys customers, habits, and whatever the seller is ready to stop carrying.
Which businesses require fewer employees?
The franchises that need fewer employees are usually the ones that are not staffing a shift all day: mobile and route service, some home-based business-to-business models, and owner-operated concepts built for one or two people.