How to Buy a Franchise in 2026: Costs, Steps, Financing and Country Rules

To buy a franchise in 2026, work through ten steps in order: set your budget and goals, choose a sector, shortlist and compare brands, read the disclosure documents, talk to existing franchisees, get legal and financial advice, arrange financing, secure a territory and site, sign, then complete training and launch. The details change by country. The US, Australia, China, France and Saudi Arabia all require written disclosure before you sign; the UK, Germany, India and the UAE do not have a franchise-specific disclosure law, so the checking falls on you. Automotive service, and electric vehicle (EV) service in particular, stands out this year because the vehicles on the road are changing faster than the workshops that fix them.

This guide follows the whole buying process across the largest franchise markets, with an EV workshop franchise as the worked example.

Key takeaways

• Disclosure first, money second. In the US you must get the Franchise Disclosure Document at least 14 days before you sign or pay. China requires 30 days, France 20, Australia and Saudi Arabia 14.
• The franchise fee is only one line. Premises, fit-out, equipment, training, working capital and ongoing fees usually make up most of the total investment.
• Existing franchisees are your best evidence. The US Federal Trade Commission calls talking to them the most reliable way to check a franchisor's claims.
• Financing is local. US buyers look at SBA-guaranteed loans, UK buyers at bank lending and government-backed Start Up Loans, Gulf buyers at banks and SME programmes.
• Automotive is shifting. One in four new cars sold worldwide in 2025 was electric, which moves workshop revenue towards high-voltage, battery and software work.

How to buy a franchise, step by step

1. Set your budget and goals

Start with money and time, not brands. The US Small Business Administration's guide to buying a business or franchise begins the same way: quantify what you can invest, then weigh your skills and lifestyle. Write down the cash you can put in, the borrowing you could carry and how long you can go without an income.

2. Choose a sector

Pick a sector with demand you can see locally and that you can learn quickly. Business-to-business sectors, such as fleet vehicle servicing, can give steadier work than pure retail.

3. Shortlist and compare brands

Narrow franchise opportunities to three to five brands. In the US, the SBA Franchise Directory shows brands eligible for SBA financial assistance, though a listing is not an endorsement. In the UK, the British Franchise Association lists accredited franchisor members. Compare total investment, fees, territory, training and support like for like.

4. Read the disclosure documents

Ask every franchisor for its disclosure document and draft agreement. The FTC Consumer's Guide to Buying a Franchise explains the US document's 23 items: Items 5 to 7 cover fees and initial investment, Item 19 any earnings claims, Item 20 outlet numbers and franchisee contacts, and Item 21 audited financial statements. Where the law does not require disclosure, ask for the same information in writing.

5. Talk to existing franchisees

Australia's regulator, the ACCC, suggests speaking to at least five current and five former franchisees. Ask whether the cost estimates were accurate, what support really looks like and whether they would buy again.

6. Get legal and financial advice

Hire a franchise lawyer and an accountant in your country. The franchisor writes the contract, so have them check term and renewal, territory, fee changes, supply obligations, transfer rules and termination.

7. Arrange financing

Build a business plan with a cautious revenue case, then approach lenders. Options by region are below.

8. Secure the territory and site

Get the territory defined on a map and in the agreement. Check zoning, lease terms, power supply and approvals before signing a lease. EVS, for example, designs battery quarantine into the site plan before the lease is signed.

9. Sign

Sign only when every fee and promise you rely on is in writing. Check whether a cooling-off period applies; Australia's Franchising Code gives 14 days after signing.

10. Train and launch

Agree in writing what the first year includes: training, launch marketing, support visits and who you call when something goes wrong.

What a franchise really costs

Franchise costs vary widely by sector and country, so treat any range you see online as a prompt for questions rather than a budget. These are the components to price for every brand on your shortlist.

Also budget for legal and accounting fees.

For a real example in automotive, AAMCO's official franchise site listed a $45,000 franchise fee and a total initial investment of $276,600 to $407,200 when we checked in September 2026, with $90,000 of liquid capital and $250,000 net worth required. That is one US brand for conventional car repair. EV-focused centres and other countries will differ, and EVS sets investment per market rather than publishing a single figure.

Financing a franchise

United States. The SBA does not lend directly; it guarantees loans made by banks and other lenders. The standard SBA 7(a) loan goes up to $5 million and can be used for working capital, equipment, real estate and changes of ownership. The SBA 504 loan goes up to $5.5 million for buildings, land and long-life equipment, but cannot be used for working capital or inventory. The SBA's Lender Match tool connects buyers with participating lenders.

United Kingdom. Bank business loans are the usual route, and the BFA's investing in a franchise advice hub links to financial guidance and accredited advisers. For smaller amounts, the government-backed Start Up Loans scheme lends up to £25,000 per owner, to a maximum of £100,000 per business, over one to five years at a fixed 7.5% a year, and franchise businesses are eligible (as listed in September 2026).

Europe, India, Australia and the Gulf. Bank business loans, equipment finance and your own equity are the usual mix. Saudi Arabia's SME authority, Monsha'at, also runs a franchise centre. Some franchisors arrange third-party finance; compare it with independent quotes.

Whatever the source, lenders will want a business plan, evidence of your own contribution and the franchisor's documents.

Franchise rules by country

The biggest difference between countries is whether the law forces the franchisor to disclose information before you sign.

days

Sources: Pinsent Masons (China, October 2025), Légifrance (France), FTC (United States), ACCC (Australia), Saudi Ministry of Commerce. The UK, Germany, India and the UAE have no franchise-specific disclosure period.

United States. The FTC Franchise Rule (16 CFR Parts 436 and 437) requires a 23-item disclosure document; some states add their own rules. Our United States market intelligence covers EV demand state by state.

China. Franchising is governed by the Regulations on the Administration of Commercial Franchises. According to Pinsent Masons, a franchisor must have operated at least two outlets for a year, must file with the Ministry of Commerce (MOFCOM) within 15 days of its first franchise contract, and must give disclosure at least 30 days before signing. See the China market page.

United Kingdom. There is no dedicated franchise law; contract, competition and IP law apply, and the BFA's ethics code binds its members. In a self-regulated market, check BFA accreditation and do your own disclosure checks. More on the United Kingdom market page.

France and Germany. France's Article L330-3 of the Commercial Code, known as the Loi Doubin, requires an information document and the draft contract at least 20 days before signing. Germany has no franchise-specific disclosure statute; general contract law and pre-contract duties of fair dealing apply, so take local advice. The US International Trade Administration reports that Germany's franchise sector generated €149.2 billion in 2024. See the Germany market page.

India. The US International Trade Administration notes that India does not have specific laws on franchising; franchises fall under national and regional statutes, and master franchises on a zonal basis are common. Disclosure is not mandated, so insist on it. See the India market page.

Australia. The Franchising Code of Conduct, regulated by the ACCC, was remade from 1 April 2025. Franchisors must give disclosure documents at least 14 days before you sign, list on a public franchise disclosure register, and new franchisees get a 14-day cooling-off period. The ACCC also runs a free pre-entry course.

Saudi Arabia. The Franchise Law, approved in October 2019, requires a disclosure document in Arabic at least 14 days before signing. The Ministry of Commerce states that a franchise can only be offered after the model has run for at least a year, and that signed agreements must be registered within 90 days. See EVS in Saudi Arabia.

UAE. There is no standalone franchise law. According to Pinsent Masons, a franchise can be registered as a commercial agency with the Ministry of Economy under Federal Law No. 3 of 2022, which brings protections but requires an Arabic, notarised contract and generally UAE-national ownership of the agent. Pre-contract disclosure is not mandatory. See EVS in the UAE.

For Qatar, Oman, Bahrain and other markets, take advice from local counsel before signing. Our Bahrain market intelligence covers EV demand there.

Franchises for sale vs a new franchise vs a turnkey business

People searching franchises for sale or a turnkey business for sale usually want a faster start. The routes carry different risks.

With a resale, the franchisor usually has to approve you as buyer, so read the transfer clause and find out why the seller is leaving. A turnkey business may or may not be a franchise; without a franchise agreement there may be no ongoing training or supply terms after handover.

Why an automotive or EV service franchise is worth a look

Every car needs servicing, but the cars are changing. Electric car sales passed 20 million worldwide in 2025, one in four new cars sold, according to the IEA Global EV Outlook 2026. Nearly 55% of new cars in China were electric, 28% in Europe and just under 10% in the United States.

EVs need less routine maintenance: the US Alternative Fuels Data Center points to fewer fluids, far fewer moving parts and less brake wear. The work that replaces it is high-voltage diagnostics, battery health, software, thermal systems and ADAS calibration. That needs trained technicians and specific equipment, which general garages often lack. We set out the full case in auto repair franchise opportunities worldwide, the US picture in the US EV service opportunity, and the equipment and people in what a specialist EV workshop needs.

How the EVS franchise works

EVS Worldwide runs specialist EV service centres and is growing through franchise partners. Our franchise pages set out the model.

Hub and spoke. In the words of the franchise opportunity page, the network is "hub and spoke, not a scattering of identical shops." A flagship hub handles complex diagnostics, battery work, ADAS, the fleet desk and training, with around five productive bays plus an isolation area. Satellite centres handle inspections, battery state-of-health tests and routine mechanical work, and route complex cases to the hub.

Five launch stages:

EVS approves a centre "on contracted local demand and secured technical leadership — never on a market forecast alone." Investment levels, fee structures and territory terms are set per market, depending on facility scope, local regulation and whether the centre is a hub or a satellite.

The workshop. The workshop setup page specifies lifts rated for EV kerb weight, a dedicated access-controlled high-voltage bay, battery quarantine, an ADAS calibration area, a multi-brand diagnostics station and three technician capability tiers.

Marketing. Marketing support includes a localised website, local search setup, enquiry, booking and WhatsApp routing, launch campaigns, fleet and insurer pitch materials, and shared dashboards that track cost per booked job.

Support behind the centre. Partners get EVS Academy high-voltage training pathways, central parts procurement, a warranty and quality framework, and remote technical support.

Who it suits. The model is built for operators who can win and serve business customers: fleet operators, leasing companies, insurers, body shops and used-car dealers, as well as private drivers.

EVS on the ground in Qatar and Oman

EVS already runs 12 service centres in four countries: nine in the UAE, and one each in Saudi Arabia, Qatar and Oman, with Bahrain, Iraq and Bangladesh listed as opening soon on our locations page. EVS Qatar operates a workshop on Birkat Al Awamer Road near Doha, and EVS Oman operates from Rusail Car Market in Seeb. Both offer the same EV service menu: health checks, EV repair, high-voltage battery repair, drive unit repair, software updates, body repair and warranty packages. That is what a centre looks like once it opens. See EVS in Qatar, EVS in Oman, and the market data for Qatar and Oman.

Looking at EV service in your country? Tell us which market and we will send the franchise pack and the relevant market intelligence.

Questions to ask before you sign

• What is the total investment, line by line, and what is excluded?
• Which fees are fixed, which are percentages, and can they change during the term?
• Is my territory exclusive, and how is it defined?
• How many units have opened, closed or changed hands in the last three years?
• Can I speak to current and former franchisees of my choosing?
• What training is included, and who supplies equipment and parts, on what terms?
• What marketing is done centrally, and what do I pay for locally?
• What happens if I want to sell, and how can the agreement be ended?
• Which disclosure and registration rules apply in my country, and have they been followed?
• For an EV workshop: who provides high-voltage training, diagnostic access and battery quarantine design?

FAQ

How much does it cost to buy a franchise?

It depends on the sector, brand and country. Budget for the initial fee, premises and fit-out, equipment, training, working capital and ongoing fees. As one automotive example, AAMCO listed a total US initial investment of $276,600 to $407,200 in September 2026. Always use the brand's own disclosure document for figures.

Can I buy a franchise with no experience?

Often, yes. Many franchisors train owners from scratch. In technical sectors such as EV service, the business still needs qualified people: EVS, for example, requires a technical manager and high-voltage lead to be secured before a centre is approved.

What is a Franchise Disclosure Document?

In the US, it is the 23-item document the FTC requires franchisors to give buyers at least 14 days before signing or paying. It covers fees, total investment, litigation, outlets, franchisee contacts and audited accounts. Australia, China, France and Saudi Arabia have their own disclosure rules.

Which countries have franchise laws?

The US, China, France, Australia and Saudi Arabia have specific franchise disclosure rules. The UK, Germany, India and the UAE rely on general contract and commercial law. Always check with local counsel.

Where can I open an EVS franchise?

EVS operates in the UAE, Saudi Arabia, Qatar and Oman, with Bahrain, Iraq and Bangladesh opening soon. If you are considering another market, tell us which one.

Want to open an EVS EV workshop in your country?

If you want to buy a franchise in a sector that is changing fast, an EV service centre is worth a serious look. Read how the EVS franchise opportunity works, then send us an enquiry with your country and background. We will come back with the franchise pack, the market intelligence for your country and a straight answer on whether the demand is there.