The requirements to buy a franchise are set by each brand, but they almost always include minimum liquid capital and minimum net worth, an experience profile that fits the business and the franchisor’s approval after interviews and a background check. These amounts usually appear in the brand’s materials and are confirmed during the qualification process.

Among the legal requirements to buy a franchise, you will usually need to form a company in the United States (often an LLC or a corporation), obtain an Employer Identification Number (EIN) from the IRS, open a business bank account and obtain the licenses and permits required by the state and city where you will operate. You will also need the insurance the franchisor requires.

Before signing, the FTC Franchise Rule gives you the right to receive the FDD at least 14 calendar days before any signature or payment. If your plan includes a visa, the immigration requirements add to the brand’s requirements and should be reviewed with an immigration attorney. An FBA certified franchise broker helps you identify brands whose requirements match your profile.

To meet the requirements, a practical way to prepare is to gather from the start: account statements that show your available liquidity, a summary of your professional and business experience, a clear idea of the territory where you want to operate and the time you can devote to the business. With that information, conversations with each franchisor move faster and it is easier to rule out brands that do not fit your profile. It is also wise to consult an accountant about the company’s tax structure and a franchise attorney about the contract, because the franchise agreement is usually signed for several years and defines territorial rights, renewal, transfer and termination.