Every franchise owner pays their franchisor a cut of every dollar they make.
On almost every discovery call, there's a moment when I explain this and the line goes quiet. I can practically hear the math happening on the other end.
"Wait. I do all the work, and they take a percentage of everything I sell?"
Plenty of people stop right there. They close the tab, shelve the idea, and go back to the 9-to-5.
I think they're walking away from the best part of the deal.
Let me explain why.
When you buy a franchise, you're buying a business in a box.
Not an idea. Not a logo. A complete business that's already been built, tested, and proven in other towns before you ever open your doors.
Here's what's inside that box:
A proven system. The product, the pricing, and the process have already been figured out. Someone else paid for the trial and error so you don't have to.
Standard operating procedures. Step-by-step playbooks for how things get done, from hiring your first employee to handling an unhappy customer. You're not inventing it on the fly at 11pm.
Training and support. Real guidance when you're starting out, and a team to call when something comes up that you've never seen before.
A network of fellow owners. People running the same business in other markets who have already solved the problem sitting on your desk today.
I tell my candidates all the time: you're in business for yourself, but not by yourself.
The box is the "not by yourself" part.
Yes, you'd be paying a percentage of what you sell.
And that's exactly why it works in your favor.
Think about how your franchisor gets paid. They earn a percentage of your sales. A share of your revenue, every month, for as long as you're in business.
So the more you grow, the more they make.
That changes the entire relationship.
They're not handing you a box and wishing you luck.
They have a financial reason to want you to win. Better training. Better marketing. Better support. Better systems. Every improvement they make to help you sell more shows up in their own results.
Your success is literally how they get paid.
That's not a cost of doing business. That's a partner with skin in your game.
Not every box is packed the same way.
The royalty only works in your favor if the franchisor actually delivers on their side of the deal. So before you sign anything, it's worth asking a few honest questions:
→ What specific training and ongoing support do I get for the royalty I'm paying?
→ Are there other fees beyond the royalty, like a marketing fund contribution, and what do they cover?
→ What do current owners say about the support they really receive?
That last one matters most.
Every franchise is required to disclose a list of current and former owners in its Franchise Disclosure Document. Call them. They'll tell you their experience.
This is a big part of what I do with my candidates.
Through the Franchise Brokers Association, I have access to over 800 franchise systems.
My job is to narrow that down to the handful that genuinely fit your life, your finances, and your goals, and then walk you through the due diligence so you know exactly what you're getting.
And it costs you nothing. My fees are paid by the franchise partners, never by you.
The royalty is the reason most walk away.
But look a little closer and it's the reason the model works.
It turns a seller into a partner. It ties your franchisor's success to yours. And it gives you something no startup founder ever gets on day one: a team that profits only when you do.
So here's the question worth sitting with:
Would you rather keep every dollar of a business you have to figure out alone, or share a slice of one that someone is invested in helping you grow?
If you're a professional seriously exploring business ownership, let's have a quick, no-obligation 15-minute chat. I'll share the franchise categories and brands that fit your budget, your schedule, and your goals.
Book a time here: https://meetings.hubspot.com/keith-liscio
Ever upward!
Keith
