About Terese

Terese McGroarty has been in franchising for more than 25 years, first as an owner — she and her husband bought their first franchise, a Shell gas station, at 21 — before moving into automotive repair and eventually becoming a franchise consultant at FranNet. Today she guides prospective business owners through choosing, vetting, and buying a franchise, representing roughly 200 brands and matching each client's personality, goals, and finances to the right fit.

What we talked about

The entrepreneur profile — how a 30-minute questionnaire and a two-hour conversation sort clients into belongers, achievers, societals, and emulators.

What it really costs to get in — the net worth and cash-reserve minimums most franchisors expect before you even talk numbers.

Reading the FDD — which sections actually matter, and why calling franchisees is where the real due diligence happens.

The biggest red flags — litigation history, unhappy franchisees, and clients who can't make decisions.

Discovery Day — the in-person meeting that can end a deal on gut feeling alone.

Where AI fits (and doesn't) — why she won't let a model make the final call for her clients.

Sharpest moments

On the real job:

I've helped more people not go into business than go into business.

On the one trait that matters most:

Business ownership is about making decisions. And if you can't decide to move forward... maybe business ownership isn't for you.

On keeping AI in its place:

I could probably right now load up my clients' information to AI... and say spit out the best fits. But I like the thought process... I don't want to just say, well, AI told me.

On what franchisors actually screen for:

Franchise owners are looking for people who know how to manage money and manage people and follow a system.

On the decision to explore ownership at all:

If business ownership is a thought, I think you owe it to yourself to explore it. You never want to get to be 60, 70 years old and go, I wish I had.

Key takeaways

• Most franchisors expect a net worth around $500,000 and enough cash to cover a full year of living expenses before the business turns a profit.
• The real diligence work happens by calling a spread of franchisees — new, established, struggling, and thriving — not by reading the FDD alone.
• Litigation history and unhappy franchisees in the existing network are the clearest red flags in an FDD.
• Home services, senior care, and boutique fitness are the categories she sees growing fastest right now.
• FranNet is itself a franchise — one of the few consultant networks structured that way — and gets paid by the franchisor, not the client.
• Discovery Day, the in-person meeting with a franchisor's leadership, can make or break a deal on gut feeling alone.