FranFund is a Rollover as Business Startup (ROBS) provider and a total funding solution for franchising and small businesses. They will help you in the process of taking out money from your 401(k) and investing it in your business or using it to start/franchise a new one. We compiled FranFund reviews from around the web to determine what their customers think about the company.
Overall Experience: Good
Customer Service/Reliability: Good
Summary of FranFund Reviews
We looked around the web and found that FranFund has mixed ratings. Here’s what we found:
What FranFund does well:
Their services are a great choice for aspiring franchisees due to their experience in the area. 96% of their clients start or buy a franchise.
What FranFund does not do well:
They are a bit new to the game and do fewer ROBS transactions in a year than other ROBS service providers.
Most Helpful Positive User Review
One positive reviewer on Facebook called FranFund a “true business partner” and raved about its great customer service. He said the employees he worked with guided him well all throughout the process, and took away all the stress he would’ve endured as he built his franchise.
Most Helpful Negative User Review
A negative reviewer on Yelp didn’t like that there were so many upfront and ongoing fees. She said the fees continued even after she stopped using their services, and that the possible increase of tax penalties in the long run wasn’t worth it. She considers choosing FranFund an “expensive mistake”.
FranFund Pricing and Fees
|Initial Setup Fee|
(can be paid at $120 per month)
|Wait time for funds|
|Audited plans in 2016|
|# of ROBS disqualified after audit|
|Will the firm help in the case of an audit?|
|Pre-ROBS outside counsel|
|Outside counsel in case of an audit|
|Annual number of ROBS|
FranFund has an annual fee of $1,440 that is owed at the beginning of the year, but it can be paid in monthly installments of $120 if you allow an automatic draft from your bank account. They have some of the lowest upfront and ongoing fees among ROBS providers, but since their fees are billed annually you’ll owe the full amount no matter when you stop using their services.
Outside counsel is not included in the contract both for before you apply for a ROBS and in the event of an audit. However, FranFund does say that they can offer legal and professional tax help if they feel like you need it during the auditing process.