Regional Development (RD) and Area Development (AD) franchises are not for everyone. The franchisor will usually grant the territory to someone or some group with the following four important qualifications:

1. Management and/or sales experience. Real life experience running a business or managing a business for someone else is very helpful but not essential. There are successful RD franchisees who are engineers, hair stylists, or homemakers.
2. Good people skills. You'll be dealing with your franchisees and will need to treat them like customers, which they are.
3. The ability and desire to follow a proven system. The franchise system offered is a system for success when followed. Don't buy a franchise unless you believe you can follow their system. With RD franchising, however, the system is a little more flexible at your level because you help set the standards for your particular area.
4. Financially qualified. Franchise fees for a RD franchise will typically range from $30,000 to $250,000 to purchase an exclusive area. In addition, you will need operating capital to support your operation until you can begin to make money. You will also need to allocate funds to advertise for franchisees. Typical operating capital will be from $25,000 to $200,000 depending on how large your set up is. Keep in mind, however, that you can begin with fairly low overhead, perhaps running the business out of your home until you are ready for larger office.