About FranSave Franchise
FranSave is a franchise brokerage services franchise that connects aspiring business owners with franchise brands using predictive analytics and data driven matching.
The company has offered franchise opportunities since 2021, providing a modern approach to franchise consulting that leverages technology to improve the quality of referrals between brands and prospective buyers.
The initial franchise fee ranges from $0 to $2,000, making it one of the lowest cost franchise opportunities available.
FranSave Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $0 or $2,000 | One-time payment upon signing |
| Royalty Fee | 10% of Gross Revenues on the first $300,000 of your annual Gross Revenues, plus 1.9% of Gross Sales on annual Gross Sales above $300,000 OR $300 per month plus 4.9% of Gross Revenues on the first $300,000 of your annual Gross Revenues, plus 1.9% of Gross Sales on annual Gross Sales above $300,000 of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of Gross Revenues | National brand fund |
| Total Investment Range | $4,550 – $12,450 | Includes build-out, inventory, working capital |
The investment range of $5K–$12K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (10% of Gross Revenues on the first $300,000 of your annual Gross Revenues, plus 1.9% of Gross Sales on annual Gross Sales above $300,000 OR $300 per month plus 4.9% of Gross Revenues on the first $300,000 of your annual Gross Revenues, plus 1.9% of Gross Sales on annual Gross Sales above $300,000) and marketing fee (Up to 1% of Gross Revenues) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $0 | $2,000 |
| Discovery Process and Training Fee | $4,000 | $4,000 |
| Misc. Supplies | $0 | $100 |
| Insurance – 3 Months | $450 | $600 |
| Computer System | $0 | $1,000 |
| 3 Months’ Rent | $0 | $500 |
| Licenses and Permits | $100 | $250 |
| Legal and Professional Fees | $0 | $3,000 |
| Additional Funds (3 months) | $0 | $1,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $500 plus any broker fees if applicable |
| Renewal Fee | None |
| Technology Fee | Currently $200 per month per user, or then-current amount |
| Audit Fee | Actual cost to us |
| Fee for Additional Attendee at Initial Training | $1,000 per person |
| Additional Training Fee | Currently $500/per day. |
| Annual Conference | Currently $400 per person; may increase throughout the term of the Agreement |
| Insurance Coverage | Cost of the insurance, interest on the monies we advance and a reasonable fee |
| Deficiencies | Actual cost to us |
| Interest on Late Payments | The lesser of: (i) 18% per annum; or (ii) the maximum rate of interest permitted by law |
| Late Charge | $250 |
| Prohibited Products or Services Fee | $100 per day that unauthorized products or services are offered |
| Violation of Brand Standards | $500.00 for each occurrence |
| Enforcement Costs | Varies |
| Indemnification | Varies |
| Step In Rights | Costs plus $500 per day |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 20.0 hours |
| Classroom Training | 20.0 |
| On-the-Job Training | 0 |
| Training Location | Virtual |
| Additional Training | The franchisor may provide additional training programs, seminars, or advanced management training at headquarters or other designated locations (including virtually), which may be mandatory. Franchisees must pay a standard training fee (currently $500 per diem) and cover all travel, meals, and lodging costs for attendees. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees may operate from a home or other office, subject to franchisor approval. No exclusive territory is granted, and franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels/competitive brands controlled by the franchisor. There are no restrictions on advertising or customer acceptance location. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | two successive additional terms of five years each |
| Renewal Fee | None |
| Renewal Conditions | To renew, the franchisee must provide written notice 2-9 months prior to term end, not be in breach of agreements, satisfy all monetary obligations, execute the then-current franchise agreement (which may have materially different terms including higher royalty/fund contributions), comply with all current requirements including training, and sign a general release. |
| Transfer Fee | $500 plus any broker fees if applicable |
| Transfer Conditions | Approval is conditioned on the transferee meeting new franchisee criteria, the franchisor not exercising its right of first refusal, all monetary obligations being satisfied, existing defaults cured, compliance with post-termination obligations, payment of a $500 transfer fee, satisfactory completion of initial training, execution of the current franchise agreement, provision of the purchase agreement, execution of a general release, obtaining all necessary permits/licenses, and compliance with all transfer laws. |
| Termination for Cause | The franchisor may terminate the agreement with or without notice depending on the default. Immediate termination without notice can occur for bankruptcy, unauthorized transfer, criminal acts, fraud, misrepresentation, failure to complete training, repeated breaches, misuse of marks/confidential information, health code violations, in-term restrictive covenant violations, liens, insolvency, abandonment, misuse of proprietary software, failure to maintain insurance, government actions, anti-terrorist activities violations, personal use of property, insufficient funds, or under-reporting of gross revenues. Termination with 15 or 30 days' notice and opportunity to cure applies to other defaults like nonpayment, failure to endorse checks, failure to open, failure to supervise operations, quality control issues, adverse conduct, licenses/permits issues, banking changes, unauthorized products/services, or unapproved purchases. |
| Non-Compete Period | In-term: during the term of the franchise. Post-term: 2 years after expiration, nonrenewal, transfer, or termination. |
| Non-Compete Details | During the term, the franchisee and its principals/family cannot own, operate, be employed by, lend money to, or have an interest in any competing franchise broker/consulting business or solicit customers/suppliers for competitive purposes. For 2 years post-term, they cannot enter into a competing franchise broker/consulting business (granting franchises or offering services) within the United States, or solicit FranSave customers/suppliers for competitive purposes. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisees are required to operate under an “Owner-Operated Model,” meaning the franchisee or a Managing Owner (if an entity) must carry out day-to-day business operations. The owner or Managing Owner may devote full-time or part-time efforts but cannot engage in other businesses that interfere with the FranSave Business. |
| Required Suppliers | Franchisees must purchase or lease supplies, advertising materials, and other products and services from authorized manufacturers, contractors, and other suppliers approved in writing by the franchisor. These suppliers must meet the franchisor's standards, specifications, quality controls, and supply capacity. |
| Supply Restrictions | The franchisor may approve a single supplier for any product or service and may concentrate purchases with one or more suppliers to obtain better prices or advertising support. The franchisor reserves the right to receive payments from suppliers based on franchisee dealings. |
| Franchisor Revenue from Suppliers | During the past fiscal year, neither the franchisor nor any affiliate generated revenue, rebates, or other material consideration from franchisees’ required purchases or leases. However, the franchisor reserves the right to receive such compensation in the future and use it without restriction. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer direct or indirect financing. We do not guarantee your note, lease or other obligations. |
FranSave Franchise Earnings — Item 19
FranSave does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
FranSave Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
FranSave System Growth
FranSave currently operates 7 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 2 |
| 2020 | 2 | 2 | 2 |
| 2021 | 5 | 0 | 7 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 10 states: CA, IL, IN, MD, MN, ND, RI, SD, VA, WI
Franchisor Financials (Item 21)
Audited by Morey, Nee, Buck & Oswald, LLC for year ending December 31, 2021.
FranSave Franchise — FAQ
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