Goals
- What yearly income do I need, and by when?
- Do I want to build equity to sell later, or run the business long term?
- Owner-operator, manager of managers, or semi-absentee?
- How many hours a week, and are evenings or weekends acceptable?
Worksheet and calculator
Franchise fit worksheet and budget calculator
Last updated:
This worksheet helps you write down your goals, skills, budget, and location so you can judge any franchise against your own criteria.
How do I figure out what franchise I can afford?
Figure out what you can afford by starting from your liquid capital, setting aside the required equity and a working-capital reserve, and checking what remains. The Franchise Fit Guide calculator below does that arithmetic using published rules of thumb, with every assumption labeled, so you can test a franchise before you talk to its sales team.
Part 1: The self-assessment worksheet
Answer each question on paper or in a notes app. Be specific; vague answers lead to vague shortlists. Bring your finished answers to your consultation.
Skills
- Which three skills from my career do I use best?
- Do I enjoy selling and networking, or prefer operations?
- How comfortable am I following a set system?
- How many employees am I prepared to hire and lead?
Investment range
- How much liquid capital can I commit without touching emergency funds?
- What is my approximate net worth?
- Will I finance, and can I meet a 10 percent equity requirement?
- How many months could I live without a salary from the business?
Location and lifestyle
- Where do I want to operate, and how far will I commute?
- Would a home-based, mobile, or storefront model suit my household?
- Who in my family will be affected, and do they support the plan?
- Which industries do I want to avoid entirely?
Part 2: Budget calculator
Enter your own figures. The calculator runs in your browser and nothing is saved or sent anywhere.
Your estimate
- Minimum equity (10%)
- $36,238
- Additional capital reserve (about 10%)
- $36,238
- Cash left after equity and reserve
- $77,524
- Yearly royalties at 4% to 8%
- $20,000 to $40,000
Your cash covers the estimated equity and reserve. Confirm every figure with the brand’s FDD and a lender.
Assumptions used
- Equity: 10 percent of the total investment, based on the 2026 SBA rulebook reported by MMCG. Cash purchases need the full amount.
- Reserve: about 10 percent of the initial investment, from the Love Law Firm guidance on additional capital. Many owners hold more.
- Royalties: 4 to 8 percent of gross sales, the common range reported by Franchise Expo USA. Marketing fund and technology fees are not included.
- The default investment is MMCG's median total project midpoint of $362,381, not a recommendation.
Part 3: Score each franchise you consider
For each brand on your shortlist, give a score from 1 to 5 on goals fit, skills fit, budget fit, and location fit. Any franchise scoring 2 or lower on a single factor deserves a hard second look, no matter how strong the other scores are. A franchise that fails your budget test can put your savings at risk, and one that fails your lifestyle test is unlikely to hold your interest over a long franchise term.
Then move on to deeper research using our guide to evaluating a franchise opportunity and the consultation prep checklist.
New here? Start with the full guide on how to choose the right franchise.
Common questions
What is the first step to owning a franchise?
The first step is a self-assessment: write down your goals, preferred role, available hours, skills, investment range, and target location. With that in hand, a conversation with a franchise consultant is far more productive. The Franchise Fit Worksheet on this site gives you a ready-made template.
How much working capital should I keep in reserve?
Keep more than the minimum. The Love Law Firm suggests franchisors ideally allocate around 10 percent of the initial investment to the additional capital estimate, and you should plan for slower ramp-up than expected. Ask current owners how many months passed before their unit covered its own costs.
What ongoing fees do franchise owners pay?
Most owners pay a royalty, which Franchise Expo USA says is commonly 4 to 8 percent of gross sales, and often a national marketing fund contribution. Some systems add technology or software fees. Royalties are charged on sales, not profit, so model them against realistic revenue, not best-case figures.
Can I start a franchise with no money?
Realistically, no. Even financed deals need equity. MMCG notes the 2026 SBA rulebook requires 10 percent equity, with a 1.25x debt-service-coverage test on first-time acquisitions from October 1, 2026. Lower-cost franchises reduce the amount you need, and a consultant can help you match brands to the capital you actually have.
Can I use an SBA loan to buy a franchise?
Yes, SBA 7(a) loans are a common way to finance franchises. MMCG’s review of the SBA 7(a) loan file found a franchise-flagged charge-off rate of 9.4 percent, or 3,337 of 35,406 resolved loans approved in fiscal 2010 to 2019. Lenders will ask for equity, a business plan, and personal financial statements.
How should I prepare for a franchise consultation?
Bring your goals, a realistic investment range, your available liquid capital, your target location, the hours you want to work, and the skills you enjoy using. List any industries you want to avoid. The Consultation Prep page on this site includes a checklist and the questions to ask.
Bring your worksheet to a free consultation
A FranNet consultant can review your goals, skills, investment range, and location with you and present franchise options that fit. The consultation is free to you, and FranNet consultants do not sell franchises.