Open TerritoryFAQ
Straight answers about buying a franchise
Cost
Does it cost me anything to work with Open Territory?
No. Franchisors pay us when a match is made. Your franchise fee is the same with us or without us, so the only thing you spend is time.
If franchisors pay you, why would you ever tell me no?
Because placing you in the wrong business is the fastest way to ruin a reputation we need for the next 20 years. We'd rather lose a fee than a client. We tell people to pass all the time, including on brands that pay us.
What does a franchise actually cost, all-in?
Add the franchise fee (often $25,000 to $50,000), the build-out or equipment, and 6 months of working capital. Service businesses with a truck can start under $150,000. Food and fitness with a lease often run $300,000 to $700,000. We give you a real number for each brand, not a range on a brochure.
AI and the future
Which franchises still need people?
The ones where someone has to show up: fixing, cleaning, teaching, cooking, caring for kids, pets and grandparents. Software can book the appointment. It can't clear the drain. Those businesses tend to hold up as AI gets better, because the hard part is physical and built on trust.
Will AI replace the franchise I buy?
Some, yes. We ask one question of every franchise before we show it to you: what part of this can't be done by a laptop? If the honest answer is "the marketing" or "the app," we pass. If it's "the part where a person shows up and you trust them," we keep reading.
Are there AI-proof businesses?
Nothing is fully proof against anything. A better question is: what does the owner do that software can't? Home services, trades, senior care, kids' education, pet care and hands-on food businesses score well. Businesses whose whole value is a scheduling app or a lead list score badly.
Do you use AI yourselves?
Yes, for research, and we say so. We're not anti-technology. We're pro-human-business, which is different. A ranking can't call a franchisor's references. We do that part ourselves.
The process
What is an FDD?
A franchise disclosure document (FDD) is the legal document every franchisor must give you at least 14 days before you sign or pay. It has 23 sections, called Items, covering fees, lawsuits, financials and how many units opened and closed. We've read 140 of them so you can read one carefully.
What is Item 19, and why does it matter?
Item 19 is where a franchisor can show what its units earn. It's where the money is, and it's also where numbers get selective. We check which units are in the figure and which aren't, then call owners to see if reality matches.
What should I look for in Item 3?
Item 3 lists litigation. One lawsuit isn't a red flag. A pattern of franchisees suing the franchisor is. We read it with you and explain what's normal and what isn't.
What is validation, and who do I call?
Validation means calling current and former franchisees to hear how it's really going. The FDD lists them. We help you pick who to call, what to ask, and how to read the answers, including the ones people don't say out loud.
How long does it take from first call to signing?
Usually 60 to 120 days. That covers learning, narrowing brands, reading FDDs, validation calls and a discovery day with the franchisor. Rushing it is how people end up in the wrong business.
I've never owned a business. Is that okay?
Yes. Many of the people we work with are first-time owners, career changers and veterans. We start with the basics and go at your pace. Some brands want industry experience. Most want people who follow a system and treat customers well.
Do I have to be in the truck, or can I own the trucks?
Both are real answers, and they lead to very different lists. Owner-operator models cost less and grow slower. Manager-run models need more capital and strong hiring. We'll ask early which one you want.
What is a territory?
A territory is the area where a franchisor agrees not to put another unit of the same brand. Good territories are defined by population and households, not just ZIP codes. Territories do sell out, and we'll tell you only when it's true.
Can I buy more than one location?
Yes. We work with single-unit, multi-unit and area representative buyers. Multi-unit deals need more capital and a plan to hire managers, and we'll show you what that looks like before you commit.
How many brands can you introduce me to?
Through the IFPG network we have access to hundreds of brands. You won't see hundreds. You'll see a short list, chosen on purpose, with reasons, plus one we'd tell you to avoid.
Where are you based, and do you work outside your area?
We're based in Austin, TX, and we work with buyers across the US by phone and video. Territory availability depends on the brand, so we check your market first.
What happens after I fill out Find My Franchise?
A real person reads your answers within 1 business day and replies with a time to talk. On that call we'll ask about budget, timeline and what you want your days to look like.
Money and financing
How do people pay for a franchise?
Most use a mix of savings, an SBA loan, a 401(k) rollover (often called ROBS), home equity or equipment financing. We introduce you to lenders who know franchising and help you see the monthly payment, not just the loan size.
How much cash do I need to get started?
Lenders usually want 20% to 30% of the total project in cash or liquid assets, plus good credit. A $250,000 project often means about $50,000 to $75,000 of your own money.
How long until a franchise makes money?
Plan on a 12- to 24-month ramp for most brands and keep 6 months of runway. Anyone who promises faster without showing you an Item 19 that supports it is guessing.
Is passive income realistic with a franchise?
Rarely in year one. Semi-absentee models exist, but they still need you to hire, manage and check the numbers. If the FDD doesn't support a passive claim, we won't make one.
After you sign
What happens after I sign a franchise agreement?
We don't disappear. Ron stays with you for 12 months after signing, at no extra fee. He helps with lease review, site selection and plan review.
How do you help with the lease and build-out?
Ron has opened locations himself. He helps you read the lease (tenant improvement allowances, free rent, personal guarantees), review the layout, and keep the contractor on schedule.
Let's find your Open Territory.
A few friendly questions, about five minutes. No cost, no pressure.