Franchises $1,000,000 and Up in the USA

Yes, unless the franchisor can establish an exemption, and one exemption is aimed at large investments. Under 16 CFR 436.8(a)(5)(i), the rule does not apply if your initial investment, excluding any financing from the franchisor or an affiliate and the cost of unimproved land, totals at least $1,469,600 and you sign an acknowledgment verifying the grounds for the exemption. The wording the rule prescribes for that acknowledgment says the sale is exempted from the Federal Trade Commission's Franchise Rule disclosure requirements. In an investor group, the exemption applies only if at least one individual prospective franchisee invests at that level, and the FTC adjusts the amount every fourth year based on the Consumer Price Index. So the starting figure on a card is not the test; your own investment and your signature are. Before signing such an acknowledgment, ask the franchisor whether it will still give you its Franchise Disclosure Document (FDD), and check your state's franchise law: the FTC does not intend to preempt state laws that give prospective franchisees equal or greater protection, such as registration of disclosure documents.

Neither brand's total here includes the land, so check what each Item 7 total leaves out. If you pay cash for all expenditures, Wendy's FDD puts its total from $1,580,457, excluding real property, which Item 7 lists separately as "Varies"; its building and site construction estimates are net of a landlord-provided tenant improvement allowance. Generally, Wendy's does not own and lease the restaurant premises to you unless you join its Build-to-Suit program, under which you pay sublease rent. Both of Primrose's Item 7 tables exclude land acquisition costs: an Adaptive-Reuse School, which converts an existing building, starts from $2,152,500, and a New-Build School from $5,016,600. The Adaptive-Reuse low estimate includes a $1,219,050 tenant improvement allowance from a landlord, the highest that franchisees leasing such Schools received in 2025, and both low estimates use the $50,000 Initial Fee for the first School of a qualifying veteran or member of the U.S. Armed Forces (VetFran program); a new franchisee pays $80,000, and the FDD gives no low-end total with that fee. Primrose also charges a Real Estate Fee from $25,000, depending on the development program. Item 22 of the FDD attaches all proposed agreements for the franchise, including any lease, options, and purchase agreements, so where the franchisor will be your landlord, read that lease alongside the franchise agreement. Ask each franchisor who will own the land and the building, and what you will pay for them.

Both brands here publish a minimum on their franchising sites, but they measure it differently, and neither FDD states these amounts. On its Becoming a Franchisee page, Wendy's says it is looking for "experienced restaurant operators," and two of its franchising pages list different minimums: at least $5,000,000 in net worth and $2,000,000 in liquidity on its Becoming a Franchisee page, and at least $1,000,000 in net worth and $500,000 in liquid assets on its FAQs page. Primrose publishes a minimum liquidity of $1,500,000: the FAQ on the Path to Ownership & Support page of its franchising site gives "the minimum liquidity of $1.5M." A minimum net worth is not published in the FDD or on Primrose's franchising site. Before you apply, confirm the amounts with the franchisor and ask which assets it counts, whether money from a partner or an investor qualifies, and what reserves it expects you to keep beyond the starting investment.

Read the Items of the FDD that describe the company rather than the franchise. Item 2 names the franchisor's directors, principal officers, and others who will manage the sale or operation of its franchises, with their positions and employers over the past five years. Item 3 covers litigation in four broad categories: pending lawsuits, lawsuits involving the franchise relationship, prior lawsuits, and current government injunctive or restrictive actions. Item 4 states whether the franchisor, its parent, predecessor, affiliates, officers or general partners, or anyone with management responsibility for selling or operating its franchises filed for bankruptcy, had a petition filed against them, or obtained a discharge of debts in the 10 years before the FDD's date. Item 21 holds the franchisor's financial statements, audited by an independent certified public accountant except during a phase-in allowed for start-up systems: balance sheets for the last two fiscal year-ends and statements of operations, stockholders' equity, and cash flows for the last three fiscal years, or the same statements of an affiliate that absolutely and unconditionally guarantees to assume the franchisor's duties and obligations under the franchise agreement, with a copy of the guarantee attached.