FranShares: Platform Profile

Overview

FranShares gives investors access to private franchise businesses without requiring the investor to buy and operate an entire franchise.

Current platform materials support investment structures that can include:

• diversified franchise portfolios;
• individual or grouped franchise opportunities;
• Regulation A offerings;
• Regulation D offerings;
• accredited and non-accredited access depending on offering;
• self-directed IRA participation;
• potential secondary trading where available.

The main current pricing issue is unusual:

FranShares' current FAQ says it generally charges:

• a $500 one-time acquisition fee;
• a $100 annual fee;

on each investment.

That makes investment size critical.

May fit better for

• investors seeking operating-business exposure outside public markets;
• investors interested in franchise economics;
• non-accredited investors where the offering permits;
• accredited investors evaluating private franchise deals;
• investors using an eligible SDIRA;
• investors comfortable with multi-year private-company exposure.

May fit less well for

• investors making very small allocations where flat fees dominate;
• investors requiring daily liquidity;
• users who want one standardized franchise portfolio;
• investors who want direct control over franchise operations;
• investors who assume a national franchise brand removes location-level business risk;
• investors who need guaranteed distributions.

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Current platform minimum

Current FranShares FAQ:

• Minimum investment: offering-specific
• Low end: $500

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Current investor fees

Current FranShares FAQ states:

• General acquisition fee: $500 one time per investment
• General annual fee: $100 per investment

The individual offering documents control.

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Small-allocation fee burden

At a $500 investment:

One-time acquisition fee:

$500

That equals:

100%

of the invested amount before considering the separate $100 annual fee.

This simple arithmetic shows why investors must read the offering-specific fee terms rather than assume the low-end platform minimum is economically efficient.

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$10,000 illustration

If a $10,000 offering used the current general fee disclosures show:

• $500 acquisition fee = 5%;
• $100 annual fee = 1% of the original $10,000 per year.

The fee percentage falls as investment size increases.

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Access for non-accredited investors

Current FranShares FAQ states:

• Non accredited offerings expected: Yes
• Accredited only offerings possible: Yes

Offering exemption controls eligibility.

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Historical Reg A structure

FranShares previously sponsored a Regulation A franchise fund with a $500 minimum.

That older offering is useful structural background.

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What the investor owns

Depending on the offering, investors can own securities in an entity that:

• acquires franchises;
• owns franchise-operating businesses;
• receives franchise cash flow;
• may eventually sell business interests.

The investor is not automatically the franchisee.

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Current fee-source conflict

Older FranShares content has advertised "zero fees."

Current 2026 FAQ states the general $500 + $100 fee structure.

Use the current FAQ.

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Secondary trading

Current FAQ and Terms state secondary-trading opportunities may exist when available.

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SDIRA

Current FAQ states:

• SDIRA investing possible: Yes

FranShares is not itself the SDIRA custodian.

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Franchise risk

Franchise investing can involve:

• location selection;
• labor costs;
• rent;
• franchisor fees;
• local competition;
• consumer demand;
• leverage;
• execution risk;
• franchisor rule changes.

A strong brand does not guarantee a profitable franchise location.

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Distributions

Cash distributions depend on:

• offering structure;
• franchise cash flow;
• reserves;
• reinvestment;
• debt;
• manager decisions.

Assessment

FranShares addresses a real access problem: buying an entire franchise can require six or seven figures plus active operating work.

Its private securities can reduce the capital and operating burden.

The current fee structure creates a different problem.

Flat $500 acquisition and $100 annual fees can be disproportionately expensive at small investment sizes.

That makes offering-level economics more important than the headline minimum.