Here’s a reality check: if your net worth is under $100,000, franchise ownership is probably off the table for now. That’s the bare minimum most brands require, and in many cases, you’ll need more.

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However, a $100,000 net worth does not mean $100,000 in cash on hand. It means a combination of cash, assets and a decent credit score to get you past that threshold. If your net worth is below that, you would have to explore financing options (something that we do with our clients), such as an SBA loan.

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Why? Because franchising isn’t just about writing a check for the franchise fee—it’s about proving you have the financial stability to sustain the business until it becomes profitable. Skimping on this requirement isn’t an option, and it’s non-negotiable.

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And every franchise has its own requirements for cash assets and net worth.

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It's about ensuring that there is enough operating capital to sustain and grow the business like you want to. It's always better to be over-capitalized than under-capitalized, and there are straightforward ways to put yourself in that position.

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Here's what to do to see if you clear the financial hurdle.

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Are you ready to make sacrifices?

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Before jumping into any financials of owning a franchise, take the time to decide if you're willing to make the sacrifices in your life required to scale a business. You not only have to support your business for the first year, but also yourself and your family.

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Are you willing to cut out your vacations? Is your family willing to as well?

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Have you talked to your family about what these sacrifices will mean?

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Think of this as your time and motivation net worth. If you're willing to live lean, put in long hours, frequently visit the business and tolerate some risk for the first year, then moving to exploring the financials makes sense.

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Calculating your net worth

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So, how do you calculate your net worth? Start with the basics: list all your assets—cash, investments, retirement accounts, property, vehicles, and other valuables. Then subtract your liabilities—debts, loans, and outstanding bills.

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For example, if you own a home worth $400,000 but still owe $300,000 on the mortgage, only the $100,000 in equity counts toward your net worth.

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Pitfall alert: don’t make the rookie mistake of including your home’s full value without subtracting what you owe. This error can lead to embarrassing conversations with franchisors or lenders when they dig into the details.

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Franchise brands do their homework

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Speaking of details, franchise brands will do a deep dive into your finances before approving your application. They’ll review your net worth, liquidity (how much cash or easily accessible funds you have), and overall financial health.

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Their goal? To ensure you’re not stretching yourself too thin. After all, they want franchisees who can weather the ups and downs of running a business, not those who will be drowning in debt within six months.

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So do lenders

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Lenders will scrutinize your financials too. If you’re planning to take out a loan to cover startup costs, expect them to ask for detailed documentation, from tax returns to bank statements. They’ll want to see a solid financial history, proof of income, and a plan for how you’ll handle repayment.

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Any inconsistencies or overestimations in your net worth will come to light, and if you’re not prepared, it could derail your franchise dreams.

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Confused? Don't be - that's why we're here

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The good news? We’re here to help you navigate this process. If your net worth is over $100,000 and you’re ready to explore franchise ownership, we’ll guide you through the financing options.

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From connecting you with reliable lenders to ensuring your financial picture aligns with franchisor expectations, we’ve got your back. We also help you understand what’s realistic for your budget and goals—no sugarcoating, just honest advice.

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Remember, hitting the minimum net worth isn’t just a box to check. It’s about ensuring you’re financially ready to take on the challenges of franchise ownership without jeopardizing your stability.

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If you’re serious about making this move and your numbers align, we’re ready to help you turn that ambition into reality. Let’s talk.