Two directions sign
Pablo García Saldaña, Unsplash

Thinking about buying a business?

It’s a big decision, but choosing between a franchise or an independent business can shape your entire experience. Both have their perks—and their pitfalls. So how do you decide?

First, consider what drives you.

If you thrive on structure and proven systems, a franchise might be the better fit. You are investing in a business model that has already been tested, tweaked, and rolled out successfully. That means fewer surprises. Franchisees often benefit from national brand recognition, built-in marketing, and the support of an established network.

But it comes at a cost.

Franchise fees, royalty fees, marketing fees—these add up. You are essentially paying for that built-in system. So if you are looking for more freedom and don’t want the ongoing cost of those fees eating into your profits, an independent business could be your best move. You control the business. There are no ongoing payments to a franchise company for using their brand or playbook.

The best part? Both options offer the opportunity for success.

However, what most people don’t realize is that both franchises and independent businesses fail at about the same rate. Buying into a franchise does not guarantee you’ll succeed, just as starting your own independent business isn’t a sure path to struggle. It comes down to how you operate the business, how you solve problems, and how well your market fits your offering.

So, which is right for you?

That depends. Are you the type of person who values creative freedom? Then, owning an independent business might be more up your alley. But if you are someone who likes to follow a proven path and is willing to pay for the systems that come with it, a franchise may be the perfect fit.

Ultimately, the choice boils down to your strengths, risk tolerance, and business goals. Either way, the success—or failure—will be yours to manage.

Choose wisely.

Forking forest path
Jens Lelie, Unsplash

Diversify or concentrate?

It’s a question that divides entrepreneurs. But what if both are right?

I saw a video where one guy made millions by diversifying—spreading his investments across multiple businesses, minimizing risk while building steady wealth. Then another guy comments below: “You’re wrong. You’ve got to focus on one thing to win.”

Wait a minute. Hasn’t the first guy already done it?

How can you say he’s wrong when he’s proven success with his approach? But here’s the kicker: the second guy isn’t wrong either. He just did it a different way.

Business is not a one-size-fits-all game. There’s no magical formula that guarantees success. Some people thrive by honing in on one passion, while others masterfully juggle multiple ventures.

I’m lucky to work with several brilliant business owners, and if there’s one thing I’ve learned, it’s this: everyone’s path is unique.

So, what’s the right approach? The one that works for YOU!

You don’t have to follow a single narrative. Focus on what fits your skills, goals, and mindset. And remember—success stories come in many forms.

There’s more than one way to win.

Steel bridge on a country road during golden hour in rural Iowa.
Josh Berendes, Unsplash

If you are thinking about franchising in Iowa, you need to know one thing: Iowa franchise law is unique, and most out-of-state laws firms don’t really get it.

Let me explain.

Iowa Code Chapter 537A.10 governs franchise agreements in this state. It lays out the specific rules and regulations that franchisors and franchisees must follow when doing business here. While this code provides essential protections, such as requiring good faith and fair dealing and preventing unwarranted termination, you won’t find much about it on most national law firm websites. Why? Because they don’t fully understand it and historically Iowa has not really been a hot bed of franchising.

I was digging into an Iowa franchise law issue recently and, unsurprisingly, ran across a couple of prominent franchise law firms. These big names had some generic mentions of Iowa law, clearly optimized to show up in search results. If you aren’t really familar with franchise law, it looks like they know their stuff. But when you dig a little deeper, it becomes obvious: they are not very familiar with Iowa’s specific franchise laws. They glossed over key points, only mentioning business opportunity laws and providing surface-level information that was not even close to telling the whole story.

And that’s a problem.

Although Iowa is not a registration state, Chapter 537A.10 of the Iowa Code still places specific duties on franchisors that are meant to protect Iowa franchisees. Failure to understand these nuances could leave a franchisor exposed to unnecessary risk or a franchisee without important protections available under our state’s laws.

The truth is, navigating Iowa franchise laws takes more than just a passing mention on a website intended to grab as much traffic as possible. It requires a deep understanding of the local landscape. If you are serious about franchising in Iowa, you need someone who knows the terrain—not a law firm that throws in a couple of buzzwords to attract search engine traffic.

Here’s the takeaway: Do not let out-of-state firms fool you into thinking they are experts on Iowa franchise law just because they rank high on Google. When it comes to protecting your investment and making smart franchise decisions, work with someone who’s genuinely familiar with how things operate in Iowa.

Franchising is a big decision, and it’s easy to get lost in all the legal jargon. But trust me, you don’t want to skimp on local expertise. The stakes are too high.

In short, the best advice I can give is this: Do your homework. Make sure the law firm you are trusting to guide your franchise journey knows Iowa law inside and out. Because in the end, it is not just about signing on the dotted line. It’s about making sure the terms of that contract work for you, especially here in Iowa.

Fire 259
Ricardo Gomez Angel, Unsplash

The devil is in details.

When you sign a franchise agreement, you are entering a long-term partnership. But how carefully have you read the fine print—especially the language around fees?

One seemingly minor word can cost you thousands.

Take marketing fees, for example. I have seen franchise agreements where the contract stated the franchisee must spend “at least” $200 per month on certain marketing expenses. Sounds manageable, right? But here’s the kicker: That “at least” phrase gave the franchisor the belief it force the franchisee to spend even more. Suddenly, a predictable $200 monthly budget turned into an open-ended expense.

Another example: Some agreements include broad language about royalties or technology fees. You may assume that these fees are fixed or capped, but if the language leaves room for interpretation, you may be setting yourself up for a future surprise—one that could sink your business.

So, what’s the lesson here? Don’t skim. Don’t assume. Read the language about fees with a microscope. Every word matters, and one misstep could cost you big.

Before you sign, always consult with a franchise lawyer who can help you avoid these pitfalls and ensure your budget aligns with reality.

That’s how you protect yourself.

My friend Luis taking a moment to erase everything from his mind to fully appreciate the truly breath-taking view the mountain had to offer.
Luca Calderone, Unsplash

Being a great franchisee isn’t just about following a system — it’s about mastering the little things.

  1. Own Your Mistakes Early
    No one is perfect, and that’s okay! But pretending your mistakes don’t exist? That’s not how you win. When you slip up (and you will), take ownership fast. The quicker you address it, the quicker you get back on track, and that is how you build respect from your franchisor.
  2. Invest in Relationships, Not Just Results
    Numbers matter, but relationships build your future. You want your franchisor to see you as a partner, not just a cog in the wheel. Get to know their team. Communicate with the franchisor’s leadership team. Show up to meetings with ideas, not just problems. The stronger the relationship, the more you will thrive together.
  3. Be the Sponge
    Franchising gives you the playbook. Your job? Absorb it all. Don’t just learn the “how” — dive into the “why.” The best franchisees don’t just follow the rules; they understand the bigger picture. When you get the reasoning behind each strategy, you will make smarter decisions on the fly.
  4. Ask “What’s Next?”
    The best franchisees are future-focused. You are not just running a business — you are hopefully building yourself a lasting legacy. Ask your franchisor, “What’s the next step?” Constantly push for growth opportunities. Stay one step ahead, and your franchise business will too.
  5. Don’t Just Lead, Inspire
    It is not easy to manage a team; but it’s even harder to inspire one. But that’s the secret sauce. When your employees believe in what they are doing, their passion shows in the results. Be the franchisee that builds a culture people want to be part of.
  6. Master Your Metrics
    Know your numbers like the back of your hand. What is your profit margin? What are your conversion rates? The best franchisees live by data. When you understand every number, you are not just a business owner — you are a strategist.
  7. Stay Humble, Stay Hungry
    Success in franchising is about consistency. Never think you’ve “made it.” The moment you stop pushing, that’s when you slip. Stay curious. Keep learning. Be the franchisee who never stops growing.

Final Thought: Being a franchisee is like climbing a mountain. The path isn’t always easy — there are challenges, steep climbs, and moments where you might want to turn back. But once you reach the top, the view is so worth it. Stay focused, keep moving forward, and remember that every step brings you closer to the summit. Focus on these seven steps, and you will not just be a franchisee — you will be an unstoppable force.

Franchising isn’t for everyone.

But if you’re serious about it, there are some things you need to know. For purposes of this blog post, eleven to be exact. These aren’t just suggestions; they are essential truths that can make or break your success as a franchisee.

1. Strong Brand or Great System—Preferably Both

A franchise is only as strong as its brand or its system. Ideally, you want both. If you are considering a brand no one has heard of, it better have a system that blows you away because you will be building it from the ground up like an independent business. Without a well-known brand or a proven system, ask yourself: what are you really buying?

2. Be Ready to Walk Away

The best deals are made by those who are willing to walk. When you’re prepared to step back, you hold the cards. Franchisors know this, and they are more likely to offer concessions—lower fees, better territorial protections, more favorable terms. It’s like negotiating for a car; if they think you’re about to leave, they’ll stop you with a better offer. Without a doubt, the clients I have represented who were willing to walk away consistently secured the best deals. Every time.

3. Get It in Writing

I wrote an entire blog post on this topic but verbal promises mean nothing. If the franchisor tells you something, make sure it’s either already in the franchise agreement, or written in an addendum prior to you signing. If it’s not in writing, it’s not happening. Period. You can take that to the bank.

4. Trademark Indemnification Is Non-Negotiable

Why would you invest your life savings into a brand that won’t even defend its own trademark? A franchisor should be legally required to stand by their brand, including defending you if someone sues over the use of their trademark. It seems like this goes without saying, but unfortunately many franchisors will not agree to this. If it’s not addressed in the franchise agreement, be cautious.

5. Know Yourself

Franchising isn’t for the rebellious or really even the independent type. If you are someone who likes to chart your own course, a franchise may not be the right fit. Franchising requires following a set system. If that doesn’t sound like you, don’t force it.

6. Talk to Current and Former Franchisees

Don’t skip this step. Interview as many current and former franchisees as you can. Their insights are invaluable and could save you from making a costly mistake. If you don’t do your homework, you’ve only got yourself to blame if things go south.

7. Protect Your Spouse

Personal guarantees are common, but there’s no reason your spouse should be on the hook too if they aren’t involved in the business. Keep your family’s financial exposure as limited as possible. Insist on excluding your spouse from any personal guarantees. (See #2 above if a franchisor is unreasonable about it).

8. Bargain with New Franchisors

Getting in on the ground floor of a new franchise can be enticing, but it’s also risky. New franchisors need franchisees to grow, which means you have leverage. Use it. Negotiate for better terms, lower fees, or additional support. Don’t be shy about asking for more.

9. Franchise Agreements Are Negotiable

No matter what a franchisor says, franchise agreements are negotiable. If they are not willing to budge, consider whether its the right franchise for you. A good franchisor will respect your need to protect your investment. It’s just business, after all.

10. Multi-Unit Franchising: High Risk, High Reward

Owning multiple units is where the real potential lies. The most successful franchisees I’ve seen are all multi-unit owners. But it’s not for the faint of heart or the undercapitalized—it requires significant capital and commitment. Do not consider immediately it unless you’re ready to scale and have the resources to do it.

11. Franchises Fail Too

Franchises are not a sure thing. In fact, they fail at roughly the same rate as independent businesses. Don’t fall for the myth that a franchise is a guaranteed success. It’s not. Do your due diligence, and do not trust your investment to luck.

Final Thoughts

Franchising can be a powerful way to build wealth and grow a business, but it’s not without its challenges. If you are considering a franchise, keep these 11 truths in mind. They are not just tips—they are the keys to making a smart, informed decision that sets you up for success.

Model: Bianka Pacherová https://www.instagram.com/biankamoves/ Experiments in the dark Porto Santo beach, Madeira, Portugal Model: https://www.instagram.com/biankamoves/ 👋 Hi, your small donation -> my huge appreciation paypal.me/DanieleFranchi 🙏🙏🙏
Daniele Franchi, Unsplash

One franchise probably isn’t enough.

That’s the truth most won’t tell you when you are looking to do more than just buy yourself a job. The real game-changer in franchising? Going multi-unit.

Why Multi-Unit Franchising is the Next Level

Owning a single franchise is like dipping your toe in the water—it’s a start, but it’s not where the magic happens. The franchisees who hit it big are the ones who expand their footprint, opening multiple units and leveraging economies of scale.

Think about it. With more units, you’re not just replicating success; you’re amplifying it. Every new location isn’t just another storefront—it’s a multiplier of your potential profits, your influence, and the franchise brand presence.

The Power of Scale

When you own multiple units, you unlock the true potential of franchising. You’re no longer just managing one business; you’re building an empire. This shift allows you to scale your operations efficiently, centralize your management, and optimize resources across the board.

Let’s take a page from the playbook of a successful Jimmy John’s franchisee who expanded to 59 locations. What made this possible wasn’t just financial investment—it was a strategic approach to leadership and operations. By creating a culture of transparency, investing in employee development, and adopting an abundance mindset, the franchisee scaled up to over a thousand employees and built a business that thrives on collective success.

What It Takes

But let’s not sugarcoat it—multi-unit franchising is a significant commitment. It requires a substantial upfront investment, not just in capital but in time, energy, and leadership. You are not just buying more franchises; you’re committing to growing a network, building a team, and managing at scale.

To succeed, you need to follow proven systems, foster a positive culture, and stay transparent with your team. It’s about creating a structure where everyone is aligned with the business goals, and where success is shared across the board. The more your team wins, the more you win.

The Mindset Shift

Here’s the kicker: the most successful multi-unit franchisees don’t just pay franchise fees—they embrace them. They see those fees as an investment in their own growth, understanding that what they put into the system comes back to them in spades.

By adopting an abundance mentality, these franchisees don’t just focus on what they’re spending—they focus on what they’re gaining. Whether it’s through reinvesting in their business or rewarding their managers with uncapped bonuses, they know that a rising tide lifts all boats.

The Bottom Line

If you are serious about franchising, one unit won’t cut it. Multi-unit franchising is where you move from buying yourself a job to building a wealth-generating machine. It’s about scaling your operations, leading at a higher level, and embracing the potential that comes with thinking bigger.

Are you ready to take the leap? Because the real rewards in franchising come when you decide to go all in.

Subscribe to Rush on Business today and follow me on LinkedIn and X to stay informed with timely updates, essential franchise law tips and ideas that help you protect and grow your business.

medieval armor
Henry Hustava, Unsplash

In Iowa, the franchise world has a silent guardian—Section 537A.10(11). It’s called the Good Faith provision in the Iowa franchise statute, and it’s more than just legal jargon; it is the very lifeline that ensures fairness between franchisors and franchisees. But what does this really mean if you are a franchisee?

Good faith isn’t just a phrase thrown around in contracts. It’s a mandate, a requirement for franchisors to act with honesty, fairness, and sincerity. This isn’t about checking boxes or meeting the bare minimum. It’s about integrity, about playing the game the right way.

In Iowa, when a franchisee enters into an agreement, they do so with trust that the franchisor will not only honor the letter of the franchise agreement but the spirit of it as well. Section 537A.10(11) steps in as the enforcer of that trust. It ensures that franchisors can’t exploit technicalities or loopholes to squeeze more out of their franchisees than what’s fair.

This provision acts like a safety net, protecting franchisees from bad faith actions that could derail their business. It’s the law saying, “Play fair, or don’t play at all.” For franchisees, understanding this shield can be the difference between a thriving business and a nightmare scenario.

This provision has been a game-changer for our franchisee clients tangled in disputes with their franchisors. Franchise agreements are notoriously lopsided, skewed heavily in favor of the franchisor, leaving franchisees in a vulnerable position. But this Good Faith protection? It’s a lifeline for franchisees here in Iowa. When it comes to litigation, it’s the kind of clause that makes the franchisor sit up and take notice—because they know they’re up against someone who’s not backing down.

So, as you navigate the complexities of franchise agreements, remember that Iowa Code Section 537A.10(11) is there to back you up. It is a reminder that in Iowa, the law values fairness and good faith, ensuring that the balance of power doesn’t tip too far in one direction. Because in the world of franchises in Iowa, fairness isn’t just a virtue—it’s a requirement.

Subscribe to Rush on Business today and follow me on LinkedIn and X to stay informed with timely updates, essential franchise law tips and ideas that help you protect and grow your business.

Hope
Marc-Olivier Jodoin, Unsplash

Before you pick up the phone or draft that email, pause. You’re not just reaching out to a franchisor—you’re beginning a relationship that could define your next decade. And like any meaningful relationship, how you start will shape everything that follows.

  1. Curiosity, Not Conviction: Too many prospective franchisees approach with a checklist, focusing on what they think they need from the franchisor. Instead, shift your focus inward. What do you genuinely want to learn about this opportunity? What are the challenges, unknowns, and nuances of the business model that you need to explore? Embrace the mindset of a detective, not a shopper. Your curiosity should drive you to uncover whether this franchise truly fits your vision, strengths, and long-term goals. The right questions, rooted in genuine curiosity, will lead you to the clarity you need to make a confident decision.
  2. Shared Values Over Shared Success: Sure, you want the franchise to be profitable. But more importantly, do you and the franchisor share the same values? Are you aligned in how you view customer service, employee treatment, and long-term growth? Profitability is a byproduct of shared values. Before you even think about dollars and cents, ensure you are on the same page about what matters most.
  3. Long-Term Vision, Short-Term Flexibility: When contacting a franchisor, think beyond the initial setup. Where do you want to be in five years? Ten years? But here’s the kicker: Be open to how you get there. The best franchisors are those who can help you navigate the unexpected twists and turns of business. Seek out those who are flexible, adaptable, and eager to support your unique journey.

Contacting a franchisor isn’t just about gathering information—it’s about setting the stage for a lasting, fruitful partnership. Approach with curiosity, align on values, and be ready for the long haul. If you get these mindsets right, you’ll start on the path to building something truly significant.

Go ahead. Reach out with purpose.

Subscribe to Rush on Business today and follow me on LinkedIn and X to stay informed with timely updates, essential franchise law tips and ideas that help you protect and grow your business.

Taking photos of sunsets is always a gamble! You can never trust the weather forecast to tell you whether the sky will be photo worthy, more often than not you’ll probably be disappointed with the result. We had been checking the sky for a week to try and get out for some sunset photos but every evening was overcast. The day this photo was taken wasn’t any different, with a thick bank of cloud on the horizon, but we decided to skip dinner and go a few miles to Talisker Bay to see if the sun would surprise us. We got there about an hour before and knew it was going to be a special evening.
Joshua Earle, Unsplash

Rushing into franchise ownership without preparation is a costly mistake.

To avoid buyer’s remorse, you need to be deliberate in your approach. Here’s how:

1. Self-Assessment: Know Your Strengths and Weaknesses

Before browsing franchises, evaluate your skills, interests, and financial situation. Too often, people pick franchises based on potential profit, not realizing they lack the passion or experience to thrive in that industry. I worked with a client that entered into an agreement with a successful restaurant franchise. The problem? He realized he did not want to spend so much time away from his family and discovered that he didn’t enjoy working in a restaurant, especially when employees failed to show up.Tip: Ask yourself tough questions—are you ready for the commitment? This self-awareness will help you filter out franchises that don’t align with your strengths.

2. Financial Preparation: Understand Your Budget

Franchises are often expensive, and the costs go beyond the initial investment. Many prospective franchisees underestimate ongoing fees and working capital needs. The mistake? Skimping on financial planning and ending up cash-strapped. Action step: Get pre-approved for financing and create a realistic budget that includes a cushion for unexpected costs. This way, you can focus on franchises that truly fit your financial profile.

3. Research the Industry: Look Beyond the Brand

A strong franchise brand doesn’t guarantee success. Ignoring industry trends can lead to failure, even with a well-known name. I have worked with franchisees from so-called top-ranked brands that ultimately failed miserably. Example: Invest in a franchise in a declining industry, and you might find yourself stuck with a business that loses relevance. Research the market, understand its dynamics, and pick an industry with staying power of at least a decade.

Conclusion

By starting with self-assessment, financial prepartion, and industry research, you’ll set yourself up for franchise success, and avoiding common pitfalls that derail others.

Subscribe to Rush on Business today and follow me on LinkedIn and X to stay informed with timely updates, essential franchise law tips and ideas that help you protect and grow your business.