Verified — real FDD extraction
SBA-eligible · directory code S2081 since 2017
FranNet
Other · independent · est. —
FranNet is a franchise consulting company whose advisors help prospective business owners evaluate and select franchise opportunities. A franchisee runs a home-based consulting practice, coaching candidates through the search and earning referral fees from franchisors when placements close.
FranNet net unit count declined -15.9% from 2013–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Showing strain
Distress
The disclosed record shows weakness — shrinking units, elevated exits, or churn — worth reading closely before going further.
Exit rate · latest year
10.9%
fiscal 2025, per Item 20
Cost to open
$60K–$98K
Item 7 total investment range
SBA loan defaults
Too few resolved
2 loans exist; too few resolved to rate
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 7 of 64 franchised outlets left the system — a 10.9% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2013 | 2014 | 2015 | 2017 | 2018 | 2019 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|
| Outlets at start | 52 | 55 | 57 | 55 | 57 | 56 | 69 | 69 | 64 |
| Opened | 4 | 3 | 0 | 3 | 1 | 0 | 5 | 4 | 1 |
| Transfers | 0 | 2 | 4 | 8 | 5 | 3 | 0 | 1 | 0 |
| Terminations | 0 | 0 | 0 | 2 | 1 | 0 | 3 | 8 | 7 |
| Non-renewals | 0 | 0 | 0 | 0 | 1 | 0 | 1 | 1 | 0 |
| Reacquired by franchisor | 0 | 0 | 2 | 0 | 0 | 0 | 0 | 0 | 0 |
| Ceased — other reasons | 1 | 1 | 0 | 0 | 0 | 0 | 1 | 0 | 0 |
| Outlets at end | 55 | 57 | 55 | 57 | 56 | 56 | 69 | 64 | 58 |
| Net change | +3 | +2 | -2 | +2 | -1 | 0 | 0 | -5 | -6 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 2 SBA-backed loans to FranNet franchisees since 2018. Most are still open, so there is not yet a resolved cohort large enough to rate.
—
1 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$196,400
what recent franchisees borrowed
—
approval → charge-off, defaulted loans
1 vs 1
distinct banks still lending
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO FRANNET BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $25K franchise fee (Item 5) and a total investment of $60K–$98K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$60K–$98K
all-in investment range
Franchise fee (Item 5)
$25K
upfront, one-time
Royalty (Item 6)
—
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$0
0% of sales, before profit
Over a 10-yr term
$0
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for FranNet with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
The public record puts this brand toward the riskier end of the systems we score — but the evidence is thin, so treat it as a range, not a number.
Risk percentile (range)
74–98 / 100
Directional
Modeled SBA charge-off
18.7%
Observed SBA charge-off
no resolved cohort
Top drivers: Investment ceiling (log) (raises) · System size (log units) (raises) · Net unit growth (raises) · Item 20 exit rate (raises). Thin loan history — treat this as a range, not a number. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for FranNet. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing FranNet's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →FranNet franchise questions, answered from the filings
What percentage of FranNet franchises closed last year?
In FranNet's latest FDD Item 20 (fiscal 2025), 7 of 64 franchised outlets left the system — an annualized exit rate of 10.9%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a FranNet franchise cost?
Per FranNet's 2026 FDD, buying in requires an initial franchise fee of $25K (Item 5) and a total initial investment of $60K–$98K (Item 7).
Does FranNet disclose earnings (Item 19)?
Yes — FranNet makes a financial performance representation in Item 19 of its 2026 FDD, reporting a median unit volume of $212K. Read it closely: franchisors choose which units and which metrics to include.