Franchise Lighthouse guides aspiring entrepreneurs through the franchise discovery process — helping you match with proven franchise brands that fit your goals, budget, and lifestyle.
We are ready to answer your questions!
Franchise Lighthouse is a national franchise brokerage and consulting firm dedicated to helping entrepreneurs, executives, and career changers find the right franchise opportunity. As an experienced franchise broker, we simplify the search process by analyzing your goals, experience, and investment level — then connecting you with vetted franchises that align with your success vision.
Steps:
Discover Your Goals – We start with a personalized consultation to learn about your background, lifestyle goals, and investment range.
Match You with the Right Franchise – Using our data-driven franchise matching system, we recommend proven franchise brands that align with your vision.
Support Every Step of the Way – From introductions to due diligence, your franchise broker provides honest, transparent guidance throughout the entire journey.
Nationwide Expertise: As a franchise broker serving all 50 states, we have access to hundreds of top-performing franchise brands.
Proven Franchise System: We only recommend franchises with strong track records, training, and support.
No Cost to You: Our brokerage services are free to aspiring franchise owners — franchisors pay our fees, not you.
Personalized Guidance: You’re never alone. We walk you through every step of becoming a successful franchise owner.
Our Process
This streamlined approach ensures potential franchisees are well-supported and informed throughout the process, from initial interest to franchise awarding and training for the grand opening.
Share your contact info, interests, financial details, veteran status, and timeframe.
A brief call to learn about each other, your financial readiness, and franchising goals.
Complete a questionnaire to aid in identifying suitable franchises.
Review a curated list of franchises, discussing investment and ROI potential.
Discuss progress, address concerns, and prepare for the next steps.
Meet with franchise attorneys and funding experts for consultations.
Includes several steps like a discovery call with the franchise, reviewing the Franchise Disclosure Document (FDD), discussing territory and unit economics, validation calls with current owners, an executive call, Discovery Day at headquarters, and finally the Award Day.
First Responders and Veterans
Are you a first responder or veteran seeking a new career path or additional income? Discover franchising opportunities tailored to your unique skills and experiences, offering a rewarding way to transition into business ownership while continuing to make a difference in your community. Start your journey toward financial independence with a proven business model that aligns with your values and dedication.
Better Results
Candidates who work with Franchise Lighthouse can significantly increase the likelihood of being awarded a successful franchise brand.
More Data
Franchise Lighthouse provides valuable insights and advice on the franchising process, including legal and financial considerations, helping franchise candidates to make informed decisions.
A: A franchise broker (also known as a franchise consultant or advisor) is an expert who acts as a
“matchmaker” between you and franchise companies . Think of them like a real estate agent but for
franchises – they have extensive knowledge of the franchise industry and a network of franchise
opportunities across many industries. The broker’s job is to understand your goals, skills, and budget, then
help you identify franchise opportunities that align with what you want out of business ownership .
Importantly, they often know which franchises are considered reliable, profitable, and available in your area,
information you might not easily find on your own . By working with a seasoned franchise broker, you
gain an experienced guide who can save you time and money by narrowing choices to the franchises that
truly fit you, and who can streamline the entire process so you’re not overwhelmed. In short, a good
broker provides insider insight and personalized guidance – helping a first-time entrepreneur approach
franchise ownership with confidence and avoid the trial-and-error of going it alone .
A: Finding your “perfect fit” franchise is one of the biggest ways a broker brings value. They start by getting
to know you through a detailed consultation – asking about your business goals, interests, strengths, work
style, financial situation, and even lifestyle preferences . Based on this personal profile, the broker then
researches and presents a curated shortlist of franchise opportunities that match your criteria . They’ll
explain the franchise business models in depth, including the pros and cons of each option, so you
understand how each franchise operates and what it requires from an owner . Essentially, the broker
does a lot of the legwork for you: out of hundreds of franchises out there, they filter it down to a few quality
options that fit your needs. Once you have that shortlist, your broker will arrange introductions with
franchisors, help you ask the right questions, and guide you through comparing those opportunities. This
personalized matchmaking approach not only makes the search process more efficient, but also greatly
increases the chance that you’ll invest in the right franchise – one that aligns with your goals and in which
you can thrive . By having an expert guide, you won’t waste time on franchises that aren’t a good fit.
Instead, you can focus your energy on evaluating a select few promising opportunities with confidence that
they meet your objectives.
A: Here’s some good news for prospective franchise owners: using a franchise broker typically costs you
nothing. Franchise brokers are usually paid by the franchisor, not by the candidate. In other words, you pay the same franchise purchase price as you would going directly to the franchisor – there are no extra fees or
markups for working with a broker . The franchisor compensates the broker via a referral fee or
commission if you end up buying a franchise, much like how a seller pays a real estate agent’s commission
in a home purchase. Franchisors are happy to do this because brokers introduce them to well-qualified,
serious candidates (people who have been educated and vetted through the broker’s process) . This
creates a win-win-win scenario: the franchisor finds a good new franchisee, the broker earns a fee for their
matchmaking service, and you get expert guidance at no out-of-pocket cost . A reputable broker will be
upfront about this arrangement. Importantly, because their success depends on successful matches,
brokers are motivated to help you find a franchise that you’ll be happy and successful in, not to push
any one brand. Always feel free to ask a broker about their compensation – transparent brokers will gladly
explain how it works. The bottom line is that you get professional franchise consulting without having to
write the check for it, so you can take advantage of their expertise with little downside.
A: One reason franchising is so popular with first-time entrepreneurs is that it offers the chance to be “in
business for yourself, but not by yourself” . When you invest in a franchise, you’re buying into a
proven franchise business model that already has successful systems, products/services, and brand
recognition in place . Unlike starting an independent business where you’d have to figure everything out
through trial and error, a franchise comes with a playbook. The franchisor provides training, operational
manuals, marketing support, and ongoing coaching to help you run the business effectively . In
essence, you get to stand on the shoulders of those who came before you – benefitting from the
franchisor’s and other franchisees’ experience of what works (and what doesn’t) in that business . This
significantly reduces your risk as a new owner, because you’re following a time-tested model with a built-in
support system . For example, franchisors will typically train you before you open, assist with things like
location selection or marketing plans, and continue to provide guidance as you operate . Another big
benefit is the brand power – you start with an established name and reputation that can attract customers
from day one. Of course, no business is guaranteed success, but franchises generally have higher success
rates than independent startups thanks to these support systems and proven processes. In fact, studies
have found that a large majority of franchise units are still in business after five years, whereas about half of
independent small businesses will have failed in that time . All of this means franchising can be an
attractive path to business ownership for those with little experience, as it lets you launch your own
business with a safety net of training, support, and a tested model. A franchise broker will help you
understand these benefits and ensure you’re looking at franchise opportunities that leverage these
advantages – so you can step into entrepreneurship with more confidence than if you were starting from
scratch.
A: The Franchise Disclosure Document, or FDD, is one of the most important documents you’ll encounter on
your franchise journey. By law (Federal Trade Commission regulations), every franchisor must provide an
FDD to prospective buyers at least 14 days before you can sign a franchise agreement or pay any fees. The
FDD is essentially a comprehensive report on the franchise offering – it contains 23 specific sections
(“Items”) of information about the franchise . These include crucial details like the total estimated startup costs (Item 7), the franchise’s litigation and bankruptcy history, any restrictions on what you can sell,
the obligations of franchisee and franchisor, and financial performance representations (Item 19) if the
franchisor provides them . It also lists current and former franchisees and their contact information (so
you can verify information and ask them about their experience), and it includes the actual franchise
agreement contract for you to review . In short, the FDD is meant to give you a full picture of the
opportunity – both the upside and the risks – so you can make an informed decision.
Reading an FDD can feel overwhelming to a newcomer (these documents are often hundreds of pages
long!), but this is exactly where a franchise broker proves invaluable. Brokers are very familiar with FDDs
and will help break down the key points for you. While they are not a substitute for legal advice (you should
still have a franchise attorney review any agreement), a broker can guide you through the FDD and
highlight the most important sections. For example, an experienced broker will point out all the costs and
fees involved, explain how the royalty or marketing fees work, and compare the franchisor’s financial
performance claims or unit success rates to industry benchmarks. They can help translate the legal jargon
into plain English so you understand your obligations and the franchisor’s obligations. In many cases,
brokers have seen lots of FDDs from different brands, so they know what a “good” FDD looks like and can
spot potential red flags or unusual terms. As one franchise industry expert noted, “an experienced franchise
broker should understand the disclosures of the FDD and how those disclosures compare [to other brands]” –
meaning they can provide valuable context and caution if something in the document is concerning .
Additionally, your broker will make sure you take the time to actually read the FDD thoroughly (many
newbies are tempted to skim it, but it’s critical to digest it fully). Overall, the FDD is there to protect you by
disclosing all the facts; your broker ensures you interpret those facts correctly and don’t overlook any fine
print. It’s all part of doing proper due diligence before you invest in a franchise.
A: Due diligence is the research and analysis you undertake to verify that a franchise opportunity is as
good as it appears. It’s absolutely a step you should never skip, and a franchise broker will actively guide
you through this critical phase. A good broker essentially serves as your coach and sounding board during
due diligence. Here are a few key parts of the process and how brokers help:
-Researching the Franchisor: Your broker will help you evaluate the franchisor’s track record and
reputation. This includes reviewing the FDD (as discussed above), understanding the franchisor’s
financial health, and looking at how long they’ve been operating and how many franchises have
succeeded or failed. Brokers often have insight into which franchisors are strong and which ones
might have issues. They will ensure you ask the franchisor tough questions about the business
model, competition, and support systems during your discussions. Essentially, the broker brings an
investigative mindset so you don’t just take the sales pitch at face value.
-Speaking with Existing Franchisees: One of the most insightful due diligence steps is talking to people who are already running the franchise. Your broker will usually provide guidance (and sometimes contact info) so you can conduct these validation calls. They’ll even suggest what questions to ask current franchise owners – for example, “Are you achieving the financial results you expected?”, “How effective is the franchisor’s training and support?”, or “What challenges have you
faced?” . These real-world conversations let you verify the franchisor’s claims and hear the unvarnished truth about owning that franchise. Brokers often facilitate these introductions and help
you interpret the feedback you get from franchisees .
-Evaluating the Market and Territory: If your franchise will operate in a specific territory, the broker
will help you analyze the market. They can assist in examining the local competition, demographic
trends, and whether the franchisor’s brand is well-received in similar markets. Some brokers use
tools or market research to assess if your area can support the business. They want to make sure
you’re entering a viable market, not a saturated or unsuitable one.
-Analyzing Startup Costs and Financial Projections: Due diligence definitely includes getting a
handle on all the startup costs and ongoing expenses (equipment, build-out, inventory, royalties,
etc.) and projecting your revenues. Your broker will help you go through the FDD’s Item 7 (estimated
initial investment) line by line, so you understand what your total investment will likely be . Many
first-timers focus only on the franchise fee, but that’s just the tip of the iceberg – about 90% of the costs
lie below the surface in build-out, equipment, working capital, and more . An experienced broker
makes sure you consider all these costs so you’re not caught by surprise later. They might also help
you construct basic financial models or connect you with resources for building a business plan.
n summary, a franchise broker acts as a guide through due diligence, making sure you ask all the right
questions and verify everything before you sign. They have a checklist of steps (financial review, market
research, franchisee interviews, document review, etc.) and will walk through it with you so that you have a
complete picture of the opportunity . This thorough approach greatly increases your confidence that the
franchise you choose is solid and aligns with your expectations. Remember, buying a franchise is a big
decision – due diligence is how you “look under the hood,” and your broker is there to lead you through that
investigative journey so nothing important is overlooked.
A: Yes, franchise brokers can be very helpful when it comes to the financial side of buying a franchise – both
in understanding the startup costs and in connecting you with financing options. First, let’s talk about
startup costs. Every franchise requires a certain initial investment, which typically includes the franchise fee,
plus costs for equipment, build-out or renovations, initial inventory, licensing, insurance, and having some
working capital to carry the business until it breakeven. These costs are usually detailed in the Franchise
Disclosure Document (specifically in Item 7 of the FDD) . A broker will go over these numbers with you to
make sure you have a realistic picture of how much money you’ll need to launch your chosen franchise. This
is important because new franchise buyers sometimes underestimate the total cost – a broker’s guidance
ensures that you factor in all expenses (and sometimes even personal living expenses during ramp-up) so
you can plan your finances accordingly .
When it comes to financing, franchise brokers often have networks of contacts in the funding world.
They’re familiar with lenders who specialize in franchise loans, such as certain banks that do SBA (Small
Business Administration) loans, or alternative financing companies that offer products like 401(k) rollovers
or equipment leasing. A good broker will discuss your budget and funding needs early in the process and
can refer you to trusted financing sources to explore loans or other funding methods . In many cases,
they will introduce you to financing experts who can pre-qualify you for a loan or advise on the best way to
14
•
•
16
17
14
16
17
18
4
fund your investment (for example, using a combination of savings, financing, or even partnerships). This
early focus on funding is crucial – as one franchise broker group notes, “Funding a franchise purchase is
usually a major consideration… We feel it is critical to discuss financing options early on in the process so that any
problems can be addressed.” In short, the broker doesn’t provide the loan, but they act as a facilitator,
pointing you in the right direction and making sure you have a sound financial plan to actually get the
franchise off the ground. They can also help you review the franchisor’s requirements for capitalization
(many franchisors have a minimum net worth or liquid capital requirement), so you only pursue
opportunities that you can realistically afford.
Lastly, brokers help you consider how the ongoing costs (royalties, marketing fund contributions, etc.) and
revenue projections will affect your budget. They will encourage you to prepare for sufficient working
capital – meaning having enough cash reserve to cover expenses until your franchise starts turning a profit.
This kind of financial prep, with a broker’s insight, increases your chances of success because you won’t be
caught off guard by money issues. So, while writing the check is ultimately up to you, a franchise broker
ensures you’re financially informed and have access to the right resources to finance your new business.
A: Not necessarily. In fact, one of the beauties of the franchise model is that it often allows people to enter
a new industry without prior experience in that field. Most franchisors do not require you to have specific
industry expertise – they will teach you what you need to know about their business. Franchises are built on
the idea that the system and training enable a motivated newcomer to successfully run the business by
following the model. Many franchisors even prefer franchisees with no industry baggage, because they
want you to learn their way of doing things rather than bringing in outside habits. What they typically look
for instead are transferable skills and qualities: for example, leadership, the ability to manage a team,
customer service mentality, sales or marketing aptitude, and a willingness to follow a proven system .
Being “coachable” and business-savvy can count a lot more than having worked in that industry before. As
one source puts it, franchisors want people who are coachable and have general business skills, rather
than experts who might resist the franchisor’s methods .
That said, while direct industry experience isn’t required, you should be prepared to work hard and learn.
Franchisors will provide initial training (which can be anywhere from a week to several weeks of hands-on
instruction) and ongoing support to get you up to speed. You’ll learn their operations, their product or
service, and how to market and grow the business. The idea is that you are in business for yourself but
not by yourself – the franchisor’s support systems compensate for your lack of experience in that line of
work . Many first-time business owners have successfully launched franchises in fields completely new to
them, from running restaurants to operating home services businesses, because the franchise model gave
them the playbook and coaching they needed. A franchise broker will take into account your background
and skills when recommending franchises. They’ll steer you toward opportunities where your personal
strengths can be an asset. For instance, if you have a strong sales background, a broker might suggest a
sales-driven service franchise, whereas if you excel at operations and managing teams, they might
recommend something like a retail or automotive franchise with employees. They will avoid matching you
with a business that requires skills you don’t have or don’t enjoy – this helps set you up for success.
Also, during due diligence, talking to other franchisees about their backgrounds can reassure you; you’ll
often find many of them came from different careers themselves. In short, lack of industry experience is
not a deal-breaker in franchising. With the right training and support (and the right franchise choice),
people from all walks of life can become successful franchise owners. Your franchise broker will make sure you understand the training provided and that you feel comfortable you can learn the business. If you have
some general business experience or management experience, that’s usually more than sufficient. And if
you have none at all, a broker might recommend starting with a franchise known for extra-strong training
and support for newcomers.
A: Going into business always involves some risk, but working with a franchise broker can significantly
stack the odds in your favor as a first-time entrepreneur. There are a few ways they do this:
Steering You Toward Proven Models: Perhaps the biggest risk reducer is the franchise model itself
– you’re joining a business with a proven concept and support system, rather than testing an
unproven idea. A broker further reduces risk by helping you pick a high-quality franchise. They
know which franchises have strong track records (and which to maybe avoid). By matching you with
franchises that have a history of success, solid training programs, and satisfied franchisees, they
increase the likelihood that your business will succeed too. The difference can be dramatic: nearly
94% of franchises are still operating after five years, whereas about half of independent startups fail
in that same time . That higher success rate isn’t magic – it comes from good systems and
support. Your broker’s goal is to plug you into one of those robust franchise systems that offer true
stability. Essentially, you’re not going it alone and that alone cuts risk way down .
Comprehensive Due Diligence: Another way brokers reduce risk is by ensuring you don’t leap
before you look. They make sure you conduct thorough due diligence (as we covered earlier) –
researching the franchise, validating with current owners, reading the FDD, understanding all costs,
etc. This prevents the common rookie mistake of jumping into a franchise out of excitement or slick
marketing, only to discover issues later. By methodically vetting the opportunity, you avoid nasty
surprises. The broker’s experience helps identify red flags and ask critical questions you might not
have thought of. This means by the time you’re ready to sign, you have a clear, realistic picture of
what you’re getting into – greatly reducing the risk of regretting the decision.
Personalized Fit: A franchise that’s great on paper can still be risky for you if it’s not a good personal
fit. Brokers reduce that risk by focusing on opportunities that match your personal and financial
profile. For example, if a franchise requires heavy sales and you’re not a sales-type person, going
into it could set you up for struggle. The broker would likely steer you away from that. If you choose
a business well-suited to your strengths and lifestyle, you’ll execute better and be more resilient,
which lowers the risk of failure. As one expert notes, ignoring your own skill set when choosing a
business can be a costly mistake – brokers help you avoid that by aligning you with the right
concept.
Training and Support Systems: Franchise brokers emphasize brands that offer strong support
systems for franchisees. This includes initial training, ongoing operational support, marketing
assistance, technology systems, and more. Knowing you’ll have backup when you face challenges is
a huge weight off a new owner’s shoulders. It means problems that might sink an independent
business (due to lack of know-how) can be navigated successfully because you have a franchisor’s
guidance. Brokers also often connect you with a community of other franchisees (through validation calls or discovery days). So you start building a support network before you even open your doors.
This network and corporate support dramatically improve your chances of success as a newcomer.
Avoiding Pitfalls: Finally, brokers help you avoid common pitfalls that increase risk. For instance,
they protect you from high-pressure sales tactics or “too good to be true” deals – if a franchisor is
making overly rosy promises or pushing you to sign quickly, a good broker will pump the brakes for
you . They’ll remind you to stick to the process and not rush, thus preventing impulsive decisions.
Brokers also ensure you don’t undercapitalize your business. Many new owners get in trouble by
underestimating how much money they need; a broker works with you to plan for sufficient capital
so your franchise can weather the ramp-up period. All these little protections add up to a much safer
journey into business ownership.
In summary, a franchise broker serves almost like a safety coach – guiding you toward stable
opportunities, making sure you’re well-informed, and keeping you from tripping into the hazards that
inexperienced entrepreneurs might face. While no venture is risk-free, by leveraging a broker’s expertise
and the franchise model’s built-in advantages, you drastically increase your probability of success and
reduce the likelihood of costly mistakes.
A: First-time franchise buyers, despite their enthusiasm, can fall prey to a number of mistakes. Here are a
few of the most common ones and how a franchise broker helps you steer clear of them:
Rushing into a decision: It’s easy to get excited by a franchise opportunity and want to sign the
franchise agreement as soon as possible. However, moving too fast is a top mistake – some people
have signed within just a few weeks of starting their search, only to realize they didn’t fully evaluate
the business . A broker will make sure you take the time to properly investigate and reflect.
They’ll set a realistic timeline (often a few months) for researching and deciding, so you don’t skip
important steps. Their structured process prevents you from being in “rush mode.”
Not doing enough research/due diligence: As we discussed earlier, skipping thorough research is
dangerous. This could include failing to read the entire FDD, not asking the franchisor hard
questions, or neglecting to speak with existing franchise owners. A lot of new buyers mistakenly
believe franchises are “guaranteed” success and thus don’t dig deep . Brokers won’t let that
happen – they guide you to vet every aspect of the franchise. They might have a checklist to ensure
you review financials, seek out franchisee feedback, and even check for any complaints or lawsuits
involving the franchisor . By doing all this homework under a broker’s guidance, you avoid
the trap of investing in a franchise that looked good in marketing but had hidden issues.
Underestimating the total costs: New franchisees sometimes only focus on the upfront franchise
fee or initial investment figure and assume that’s the main cost. In reality, running short on capital is
a major reason businesses fail. Costs like build-out, equipment, inventory, and especially having
enough working capital to sustain the business until it’s profitable are critical. Many new owners
underestimate how much money they’ll need to get through the first year or two . A broker
helps you avoid this by meticulously reviewing the cost structure with you and encouraging a conservative, well-prepared financial plan. They’ll emphasize planning for contingencies and not maxing out your budget just to open the doors.
Choosing the wrong franchise for their profile: Sometimes people get enamored with a trendy
franchise or a brand they personally like, without considering if it’s actually a good fit for their skills,
lifestyle, or income goals. For example, someone might love a certain food brand and jump into a
restaurant franchise, not realizing it requires long hours and comfort with managing teenaged staff
– which might not suit them. This is a mistake of misalignment. A franchise broker adds a layer of
objectivity here. They use personality and skills assessments and their knowledge of franchisee roles
to ensure the opportunity aligns with you. If you’re not a morning person, they’ll warn against that coffee shop franchise that needs a 5 AM start. If you want flexibility, they might steer you to a home-
based or mobile business rather than a retail store with fixed hours. By heeding their advice, you avoid ending up in a business that you hate or struggle to operate.
Falling for sales hype or pressure: Franchising, like any business, has salespeople. Some
franchisors or sales brokers might use high-pressure tactics – e.g. “This territory is selling out, you
have to act now!” or paint an overly rosy picture of earnings. A rookie might be swayed by these
tactics or by glossy marketing materials. Your franchise broker serves as a voice of reason and an
impartial advisor. They will tell you that any legitimate opportunity will be there tomorrow and that
no reputable franchisor forces an overnight decision . Brokers have seen a lot, so they can usually
tell when a sales pitch doesn’t add up. They will help you separate facts from fluff. This protects you
from making a decision based on emotion or pressure rather than facts. Essentially, the broker
keeps you grounded and focused on evidence and due diligence, not just the excitement or FOMO
(fear of missing out) that slick sales tactics create.
Neglecting legal review: Another big mistake is signing a franchise agreement without having it
reviewed by a franchise attorney . Franchise contracts are lengthy and binding, and once you
sign, you’re locked into all of those terms. Many first-timers might feel intimidated by hiring an
attorney or assume the contract is standard and thus safe to sign as-is. A good broker will strongly
encourage (or insist) that you consult a qualified franchise attorney before signing. They often can
recommend attorneys who specialize in franchising. This way, you’ll know exactly what you’re
agreeing to and can negotiate terms if needed. Avoiding legal help to save a little money upfront can
be a costly mistake later – brokers make sure you don’t skip this step.
In essence, working with a franchise broker is like having an experienced mentor to anticipate pitfalls and
keep you on the right track. They’ve seen where new franchisees tend to slip up, and they’ll proactively
address those areas with you. By following the broker’s process and advice, you’ll likely avoid the landmines
– whether it’s financial missteps, inadequate research, or picking the wrong business – that could otherwise
derail your franchising dreams. This guidance builds your confidence and greatly increases your chances of
starting your franchise on a solid, well-informed footing. After all, the goal of the broker is not just to help
you buy a franchise, but to help you buy the right franchise the right way, so you become a successful,
happy owner in the long run.
We REPRESENT
HUNDREDS OF FRANCHISES
nationwide, these are just some of them:
Contact us:
Affiliations
Partnered with the best
Franchise Lighthouse is a proud member of the Franchise Brokers Association. Our candidates can rest assured that we, and they, are backed by the best franchise professionals in the industry.
The Franchise Brokers Association’s mission is to empower people, businesses, and communities to make decisions they’re proud of. We couldn’t be happier to be a part of this outstanding organization.
Ready To Take Action?
Get honest franchise guidance from the franchise industry experts. We’ll put you in a business you love.
