How to Buy a Mobile Franchise: A Step-By-Step Guide

Thinking about buying a mobile franchise but not sure where to begin? You’re not alone. Many aspiring entrepreneurs are drawn to the flexibility and low startup costs that mobile businesses offer—but navigating the franchise buying process can feel overwhelming at first.

That’s why we’ve put together this step-by-step guide. Whether you’re eyeing a food truck, a mobile retail concept, or a shaved ice trailer like Rainbow Snow, this guide will help you understand how to buy a mobile franchise, where to do your research, and how to feel confident in your decision.

Let’s get started!

Why Mobile Franchises Are a Smart Investment

A mobile franchise gives you the freedom to run your business on your own terms—without the high overhead of a brick-and-mortar location. They’re often easier to start and manage, especially if you want to:

• Keep startup costs low
• Stay flexible with your schedule and location
• Get into business quickly without a lengthy buildout
• Bring products or services directly to your customers

If this sounds like the right path for you, here’s a simple breakdown of how to buy a mobile franchise and what to look out for along the way.

Step 1: Research Available Mobile Franchise Opportunities

The first step in your franchise journey is figuring out what kind of mobile franchise fits your goals, lifestyle, and budget. There are plenty of resources to help you browse options and compare brands.

Some of our favorite sites to start with include:

• FoodFranchise.com – A directory of food-based franchises, including mobile options
• Franchise Ventures – Helps match entrepreneurs with franchise opportunities
• Entrepreneur Franchise 500 – An annual ranking of the top franchises, including mobile business models

Key Questions to Ask:

• What are the total startup costs, including equipment and licensing?
• What kind of support and training does the franchisor provide?
• Does the franchise have a strong brand presence and proven business model?
• Do you want a business that is seasonal or year-round?

👉 Pro Tip: As you explore, pay close attention to the initial investment range, required experience (if any), and whether the brand offers training and ongoing support.

Step 2: Understand the Franchise Disclosure Document (FDD) and Item 19

Once you’ve narrowed down a few franchise opportunities, the next step is reviewing the Franchise Disclosure Document (FDD). This legal document lays out important details like startup costs, fees, training, and your responsibilities as a franchisee.

But what about Item 19, the section many people assume will tell them exactly how profitable the business is?

What You Should Know About Item 19

Franchisors aren’t required to share financial performance data. In fact, about half of all franchisors choose not to include earnings information in Item 19. Even when they do, the data can be limited. Here’s a breakdown of what you might find:

1. The Missing Item 19

Some franchisors leave this section blank. They legally can’t talk about earnings with you, so it’s up to you to talk to existing franchisees and gather firsthand insight on potential earnings.

2. The Partial Item 19

You may see limited data—perhaps average sales numbers—but without information on expenses or profitability. You’ll need to connect with franchisees to fill in the blanks.

3. Company-Owned P&L Statements

This looks helpful at first, but company-owned locations often run differently from franchisee-owned ones. Use this as a starting point, but don’t stop there.

4. Hypothetical P&Ls

Some franchisors provide “what if” scenarios showing potential profits based on projections. These can be overly optimistic or unrealistic. Again, real franchisees are your best source for what’s actually happening in the field.

👉 Bottom line: There’s no shortcut. If you want an accurate picture of what you’re getting into, you have to put in the work. To start, you’ll need to:

• Call and interview franchisees or operators in the same industry
• Ask about their expenses, profits, challenges, and time commitments
• Compare what you learn with similar mobile franchises in the same industry

Use resources like Franchimp to access and compare FDDs across brands and dive deeper into financials where available.

Step 3: Talk to Franchisees 

Franchisees will be your #1 resource! Speaking directly with franchisees is one of the most important steps in buying a mobile franchise. This is where you’ll get honest answers about what it’s really like running the business.

What to Ask Existing Franchisees

• How long did it take you to break even?
• What are your biggest ongoing expenses?
• What kind of support do you get from the franchisor?
• Are you happy with your decision to join this brand?
• Would you do it again?

Don’t be discouraged if the FDD didn’t give you all the answers—most franchisees are happy to share their experiences and give you the insight you need to make an informed decision. And if it’s a start-up franchisor without any franchisees in their system yet, that’s not necessarily a red flag. Look at the franchisor’s experience as an operator, their brand presence, and the strength of their business model. Getting in early often gives you the best opportunity to help shape the system, choose prime territory, and secure a lower initial investment before the brand grows and fees increase.

Step 4: Explore Your Financing Options

Many mobile franchises offer low startup costs, but you may still need funding to cover the trailer, equipment, inventory, and other expenses. Luckily, there are financing resources specifically for franchisees:

• SBA Loans – The Small Business Administration can help you secure funding at lower interest rates.
• Franchise Financing Companies – Groups like Guidant Financial can connect you with lenders experienced in franchise funding.
• In-House Financing – Some franchisors offer financing programs or partnerships with third-party lenders to help you get started.

👉 Pro Tip: Have your business plan and research handy to strengthen your financing application.

Step 5: Attend Discovery Day & Finalize Your Decision

Once you’re ready to move forward, most franchisors will invite you to a Discovery Day. This is your chance to:

• Meet the leadership team
• Learn about day-to-day operations
• Visit a working model (or mobile unit)
• Ask any final questions before signing the agreement

Take this time to evaluate the culture and support. If everything aligns, you’re ready to join the franchise family and launch your mobile business!

Don’t Let a Lack of Information Stop You

It’s easy to feel discouraged if you can’t find every detail you want in an FDD—but that’s normal. Many successful franchisees started in the same place. Focus on doing your homework, talking to current owners, and building a realistic plan. The more research you do, the more confident you’ll be. 

Is Rainbow Snow the Right Mobile Franchise for You?

If you’re looking for a mobile franchise with low startup costs, a supportive team, and a proven system, Rainbow Snow could be your next adventure. Our iconic shaved ice trailers (aka “The Arco”) are perfect for festivals, school events, and community gatherings—and we give you everything you need to get started.

👉 Book a call with us today and take the first step toward owning your own Rainbow Snow mobile franchise!