FranNetFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A FranNet franchise requires a total initial investment of $60K – $98K, including a $25K franchise fee. Per the 2026 FDD, average unit revenue was $292K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $60K – $98K
- 14th pct Business Serv…
- Avg gross sales
- $292K
- 6th pct Business Serv…
- Royalty
- N/A
- Units
- 58
- 34th pct Business Serv…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 3.7x in gross revenue, well above the typical 1.5-2.5x range.
Franchised units fell from 69 to 58 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $60K – $98K including a $25K franchise fee.
- Average unit revenue of $292K/year (median $212K).
- Verdict A (Top Quintile) with a risk score of 51/100.
- System contracting at -15.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- FranNet, LLC
- Incorporated in
- NJ
- HQ
- 6844 Bardstown Road, Unit 645, Louisville, Kentucky 40291
- Auditor
- Deming, Malone, Livesay & Ostroff
- Audited financials
- Franchisor revenue
- $12.8M
- vs $11.8M prior year
Overview
About
FranNet franchisees operate as independent consulting brokers, primarily matchmaking between business buyers and sellers, and connecting business owners with financing, accounting, and legal service providers. Revenue is earned through consulting fees and referral commissions. Day-to-day activities include prospecting for clients, managing client relationships, conducting business valuations/exit planning consultations, and facilitating transactions.
- CEO
- Jania Bailey
- Headquarters
- KY
- Founded
- 2006
- FDD year
- 2026
- States available
- 31
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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$41K
14.0% margin
Unlevered ROIC
34%
EBITDA / total invested capital
Payback
35 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $60K – $98K
- Better than avg vs category
- Liquid capital req'd
- $30K – $50K
- Better than avg vs category
- Franchise fee
- $15K – $25K
- Better than avg vs category
- Royalty
- Tiered split: Franchisor keeps 10% of Gross Consulting In…
- Ad fund
- 292.23 per month
- Total fee load
- 10.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Technology fee | $233 |
| Transfer fee | $5K |
| Renewal fee | $6K |
| Total fee load | 10.0% of rev |
Financial Performance
- Avg gross sales
- $292K
- Per unit, per year
- Median gross sales
- $212K
- Item 19 type
- Commissions Generated and Engagements
- Sample size
- 29 units
- vs category median 32
- Range (low → high)
- $26K→$1.2M
- Cohort dispersion (min → max)
- Transparency
- 4 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
vs Business Services averages
How FranNet Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 58
- Opened
- 1
- Last reporting year
- Closed
- 7
- Turnover rate
- 12.1%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (yr3)
- -9.4%
- Net unit change last year
- 3-yr CAGR
- -15.9%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
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.
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
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 100.0%
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into FranNet's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 1 lenders with concentration factor
- Per-state charge-off rates across 1 states
- Startup risk premium and job creation velocity
- 1-year lending trend
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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.
Audited financials (Item 21)
Yes · Deming, Malone, Livesay & Ostroff
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 51 / 100 rating
- 01MINORUnit count declining 9.4% YoY (58 units) indicates system contraction and potential franchisee dissatisfaction
- 02MEDNo average net income disclosed in FDD — inability to validate profitability claims against $59,550–$97,527 investment
- 03HIGHFraud litigation in 2016 involving referral representations and Business Opportunity Statute violation, though settled
- 04MINORNo protected territory — franchisees compete directly with other FranNet consultants and independent competitors
- 05MEDTiered royalty structure heavily favors franchisor at lower revenue levels (10% up to $500k) with no disclosed breakeven threshold
- 06MINORAverage revenue of $291,700 suggests many franchisees fall in highest royalty bracket (10%), limiting net income potential
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Not allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | No |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Pennsylvania |
| Litigation count | 1 |
Items 10, 11
Training & Operations
- Classroom training
- 42 hrs
- On-the-job training
- 24 hrs
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
FDD download
FranNet · FDD (2026) PDF
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. The median is $212K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
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 69 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 A-grade franchise with a risk score of 51 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.