FranNet Franchise Cost, Revenue & Review 2026
- Investment
- $60K – $98K
- Disclosed sales
- $292K
- gross sales, not profit
- SBA charge-off
- Under 10 loans (1)
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranNet is a franchise consulting franchise that helps aspiring owners find and evaluate franchise opportunities. Franchisees work as local consultants, coaching candidates and earning referral fees from matched franchisors.
FranchiseVerdict summary · 2026
A FranNet franchise requires a total initial investment of $60K – $98K, including a $15K – $25K franchise fee. Per the 2026 FDD, average revenue per franchisee was $292K. This franchisor reports Item 19 per franchisee rather than per outlet, so the figure is not comparable with per-outlet averages[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored5 of 5 headline figures on this page cite a page of the filing.
Overview
- Investment
- $60K – $98K
- 17th pct Business Serv…
- Avg gross sales
- $292K
- Per franchisee, not per outlet
- Royalty
- Set by a formula
- Units
- 58
- 39th pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $60K – $98K including a $25K franchise fee.
- RETURNSAverage revenue per franchisee of $292K/year. Averaged per franchisee, not per outlet - not comparable with per-outlet figures.
- RISKVerdict B (Above average), verdict score 55/100 (higher is better).
- GROWTHNegative: net -6 franchised outlets in the latest year (1 opened, 7 closed); 1 signed but not yet open (Item 20).
- FLAG7 units terminated last reporting year (12.1% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- FranNet, LLC
- Predecessor
- FranNet Franchising, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer, Secretary and Director
- Jania Bailey
- Incorporated in
- NJ
- HQ
- 6844 Bardstown Road, Unit 645, Louisville, Kentucky 40291
- Auditor
- Deming, Malone, Livesay & Ostroff
- Audited financials
- Franchisor revenue
- $11.8M
- vs $12.8M prior year
Overview
About
- CEO
- Jania Bailey
- Headquarters
- KY
- Founded
- 2006
- FDD year
- 2026
- States available
- 31
Can you afford it, and what does the money buy?
Entry cost runs 41% below the typical business services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $25K | $25K |
| Working capital (3–6 mo) | $30K | $50K |
| Equipment, build-out, other | $5K | $23K |
| Total initial investment | $60K | $98K |
Source: FranNet 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $60K – $98K
- Top 40% of category vs category
- Liquid capital req'd
- $30K – $50K
- Middle of category vs category
- Franchise fee
- $15K – $25K
- Top 40% of category vs category
- Royalty
- Franchisor retains 0-10% of Gross Consulting Income (fran…
- Ad fund
- $292.23 per month per consultant (fixed flat fee, may inc…
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $233 |
| Training fee | $5K |
| Transfer fee | $5K |
| Renewal fee | $6K |
| Total fee load | 10.0% of rev |
What do units actually make?
Average unit sales run 57% below the business services norm.
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for FranNet until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$119K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one FranNet unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for royalty rate, ad fund rate, COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Averaged per franchisee, not per outlet - not comparable with per-outlet figures
- Avg gross sales
- $292K
- Per franchisee, per year — not per outlet
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- commissions generated
- Sample size
- 29 franchisees
- vs category median 37
- Range (low → high)
- $26K→$1.2MCited, not corroborated — printed on page 27 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
The average franchisee generates $292K/year in gross sales.
Fee burden
Total ongoing fee load of 10.0% (near the Business Services median).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -15.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How FranNet Compares
Per franchisee, not per outlet - the category median is per-outlet only, so no comparison is shown
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 58
- Opened
- 1
- Last reporting year
- Closed
- 7
- Terminated
- 7
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 12.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -15.9%
- Net unit change over 3 years
- 3-yr CAGR
- -15.9%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 7
- Not renewed
- 0
- Transferred
- 0
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 1
- 0.02 per open outlet · Item 20 Table 5
- Projected new
- 3
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 24 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
37 current owners across 22 states; 4 former (terminated, transferred or not renewed) listed separately.
- CA 5
- CO 3
- NJ 3
- TX 3
- FL 2
- KY 2
- NC 2
- NY 2
- OH 2
- AZ 1
- GA 1
- IL 1
- +10 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
A system losing more than 10% of its units year-over-year is a red flag. Check whether closures are concentrated in specific regions.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $150K
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- Under 10 loans (1)
- Insufficient SBA coverage: 1 loan, rate hidden below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Under 10 loans (1)
- 5-yr charge-off
- Under 10 loans (1)
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
FranNet presents meaningful acquisition risks due to system contraction, missing profitability data, prior fraud litigation, and aggressive royalty structure on lower-revenue franchisees, warranting careful validation before investment.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
Edward T. Bower et al. vs. Zounds Hearing Franchising, LLC et al. (Case No. CV16863098, Ohio Court of Common Pleas, 2016). Settled with FranNet and one franchisee collectively paying $28,000 to Zounds with mutual releases. FranNet denied all allegations.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Deming, Malone, Livesay & Ostroff
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Total contract revenue (consolidated, FranNet, LLC and Subsidiary), FY ended Dec 31, 2025. Largest component is commissions income of $9,030,415. Other income of $75,330 is reported separately below operating income. Auditor report signed in Jeffersonville, Indiana, March 12, 2026; firm name not present in extracted text.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Kickbacks from required suppliers: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 55 / 100 verdict
- 01MINORUnit count declining 9.4% YoY (58 units) indicates system contraction and potential franchisee dissatisfaction
- 02HIGHFraud litigation in 2016 involving referral representations and Business Opportunity Statute violation, though settled
- 03MINORNo protected territory — franchisees compete directly with other FranNet consultants and independent competitors
- 04MEDTiered royalty structure heavily favors franchisor at lower revenue levels (10% up to $500k) with no disclosed breakeven threshold
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Territory type | No territory protection |
| Protected territory | No |
| Exclusive territoryℹ | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | No |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | Louisville, Kentucky (mediation); Philadelphia, Pennsylvania (litigation) |
| Jury trial waiver | Yes |
| Governing law | PA |
| Litigation count | 1 |
View Item 3 litigation summary
Edward T. Bower et al. vs. Zounds Hearing Franchising, LLC et al. (Case No. CV16863098, Ohio Court of Common Pleas, 2016). Settled with FranNet and one franchisee collectively paying $28,000 to Zounds with mutual releases. FranNet denied all allegations.
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 24 hrs
- Training location
- Bee Cave, Texas (or other designated location); virtual option available
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee
- Franchisor financing
- Not offered
- Item 10
Items 5 & 11
Franchisor Support
Item 20 · call current owners
Franchisee Contacts
41 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a FranNet franchise?
The total investment to open a FranNet franchise ranges from $60K – $98K, with an initial franchise fee of $25K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do FranNet franchise owners earn?
According to Item 19 of the FranNet FDD, the average gross sales per unit is $292K. Important context: Averaged per franchisee, not per outlet - not comparable with per-outlet figures. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns FranNet?
FranNet is franchised by FranNet, LLC. Source: FDD Item 1, 2026 filing.
What is Item 19 in the FranNet FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the FranNet FDD and qualifies whose outlets they describe.
What is FranNet's franchise failure rate?
SBA 7(a) loan charge-off data is not available for FranNet (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many FranNet franchise locations are there?
As of their most recent FDD filing, FranNet has 58 total units in the United States, including 58 franchised units and 0 company-owned units. 1 new units were opened in the latest reporting year.
Is FranNet a good franchise to buy?
FranchiseVerdict rates FranNet as a B-grade franchise with a verdict score of 55 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.