What is a net worth requirement?
Last reviewed July 6, 2026
A net worth requirement is the minimum total wealth — assets minus liabilities — a franchisor requires before awarding a franchise. It is a solvency screen: paired with the liquid-capital requirement, it signals whether a candidate can absorb a slow ramp, qualify for financing, and stand behind the personal guarantees most leases and loans demand. Thresholds scale roughly with the size of the investment.
Net worth includes illiquid assets (home equity, retirement accounts), which is why franchisors ask for both numbers — worth to backstop the risk, liquidity to survive the ramp. Meeting the minimums is not the same as affording the franchise comfortably; run the math on your own downside case first.