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FRANNET
FranNet franchises operate specialized franchise consulting businesses that serve as a third-party referral network, matching prospective franchise buyers with suitable franchise opportunities based on their profiles, skills, interests, and financial capabilities. They provide guidance, information, and support to help candidates research and select franchises while delivering prequalified leads to franchisors, potential franchisors, licensors, and business opportunity companies for sales or resales. The business model focuses on consulting services and referrals, targeting entrepreneurs seeking franchise ownership and franchisors expanding their networks.
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Franchise Costs
10% of gross consulting income retained by franchisor (tiered to 0%) + $292/mo marketing fund + $233/mo technology fee + $43-$83/mo insurance
Financial Performance
Item 19 Financial Performance
This franchise did not provide Item 19 financial performance data.
Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.
Extracted Item 19 Section
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Unlock financial performance dataFRANNET Franchise Analysis
Imagine diving into a franchise that consults on franchises—meta, right? FranNet has been franchising since 2006, building a network of referral experts, but recent FDD disclosures paint a picture of contraction rather than expansion. Item 20 reveals terminations and a dip in locations, while the absence of Item 19 earnings data leaves franchise seekers guessing about the financial reality. Is this a maturing system ripe for savvy operators, or a warning sign of deeper challenges?
FranNet's track record shows modest scale with 62 locations currently after shrinking from 63 in 2023 to 57 in 2024—a 10% contraction that signals caution. Franchising for 19 years hasn't translated to aggressive growth; projected new units are just 6, with 8 terminations, 1 non-renewal, and 1 transfer in the latest FDD year (2025). This trajectory suggests a system struggling to retain and add units, possibly due to market saturation in business services consulting or competition from free online franchise matching tools. Only 1 SBA loan on record at $150,000 average underscores limited institutional financing interest, a potential red flag for liquidity or proven performance.
Financially, entry demands a $25,000 franchise fee within a $87,042-$112,527 initial investment, reasonable for a home-based consulting model but stacked with ongoing fees: 10% royalty on gross consulting income (tiered down to 0%), $292/month marketing fund, $233/month technology fee, and $43-$83/month insurance. No Item 19 means no disclosed earnings, forcing reliance on franchisor claims or FDD Item 7 estimates—buyers must validate via discovery days. Without revenue transparency amid contraction, projected ROI looks murky; average franchisees might scrape by on referrals, but high royalties could erode margins unless volume ramps up. For risk-tolerant investors eyeing niche services, it's a gamble—system health data screams 'proceed with eyes wide open.'
Analysis based on the 2025 Franchise Disclosure Document. All figures should be independently verified before making investment decisions.
How FRANNET Compares
| Franchise | Investment | Fee | Royalty | Locations |
|---|---|---|---|---|
FRANNET Current | $87K – $113K | $25K | 10.0% | 62 |
| Bimbo Foods Bakeries Distribution, LLC | $14K – $607K | N/A | N/A | 6,454 |
| THE UPS STORE (TRADITIONAL) | $216K – $609K | $30K | 5.0% | 4,500 |
| RE/MAX | $37K – $337K | $35K | 1.0% | 2,994 |
| JACKSON HEWITT TAX SERVICE | $71K – $105K | $25K | 15.0% | 2,744 |
| CRUISE PLANNERS | $2K – $21K | $11K | 3.0% | 2,655 |
Business Services Average 198 franchises | $121K – $289K | $47K | 10.2% | – |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 198 Business Services franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+20 more states
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Unlock location growth dataSBA Loan History
Historical SBA 7(a) loan data for FRANNET franchisees (2018 – 2018)
Loans by Year
SBA 7(a) loan activity over time
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
1 SBA loans on record
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Unlock SBA loan historyFranchisee Contacts
39 franchisee contacts on file from official FDD filings.
39 Contacts Available
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Unlock contactsDue Diligence
Litigation (Item 3)
Bankruptcy (Item 4)
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
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Unlock due diligence reportsFrequently Asked Questions
The total initial investment to open a FRANNET franchise ranges from $87,042 to $112,527. This includes a franchise fee of $25,000. Ongoing royalty fees are 10.0% of gross sales.
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