Fund My Franchise
401(k) / IRA Rollover (ROBS)

Fund Your Franchise With Your Retirement Dollars

Access your traditional IRA or 401(k) from a prior employer to fund your franchise — tax-deferred, penalty-free, and without a loan. Start your business cash-rich instead of debt-heavy.

At a Glance

No

Early Withdrawal Penalties

Tax-Deferred

Keeps Your Retirement Dollars Working

3–4 Weeks

Typical Time to Fund

The Basics

What Is a ROBS Rollover?

A ROBS — Rollover for Business Startups — lets you use retirement funds to invest in your own business without paying early withdrawal penalties or triggering immediate taxes. If you have a traditional IRA or a 401(k) from a prior employer and haven't yet paid taxes on those funds, you can direct them into your franchise.

It works for both new franchises and existing businesses (for recapitalization). You decide how much to invest — nothing forces you to roll over your entire retirement account. Many franchise buyers use ROBS to cover a portion of their funding and pair it with an SBA loan, credit line, or personal term loan to round out the rest.

ROBS requires proper plan design, a C-Corporation structure, and ongoing administration. An IRS determination letter addresses a plan's written terms, not whether every later transaction complies. Tenet Financial Group supports plan administration; business owners still need to understand their responsibilities.

Why ROBS

Benefits of 401(k) Funding

Tax-Deferred & Penalty-Free

A properly structured and operated ROBS arrangement can put eligible retirement funds into your business without an immediate taxable withdrawal or early withdrawal penalty.

Not a Loan

There's no required payback schedule and no debt on your balance sheet. You're investing your retirement funds into your own business — not borrowing them.

Start With Equity on Day One

Open your franchise cash-rich instead of debt-heavy. More equity from day one means more room to weather the ramp-up period and reinvest in growth.

Flexible Use of Funds

Capital can be used for real operating expenses — inventory, equipment, build-out, salaries, working capital. Not restricted like some other funding programs.

Our Partner

Powered by
Tenet Financial Group

Fund My Franchise partners with Tenet Financial Group, an industry-leading Third-Party Administrator (TPA) specializing in small business funding, with over 75 years of combined funding experience designing and administering ROBS plans.

In March 2003, Derrick Skogsberg, founder of Tenet Financial Group, used retirement money himself — the first 401(k) Plan he ever created was his own. The same plan structure you'd have today is the same plan structure Derrick has. He's been there, done that.

With the combined expertise of Fund My Franchise and Tenet Financial Group, you have a real team behind you from the start. The philosophy is quality of plans over quantity of plans. You're a person, not a number — and your ROBS plan gets designed, installed, and administered with that in mind for the long haul.

4,200+

Businesses Funded

$2.5B+

In Approved Funding

12,000+

New Jobs Created

Transparent Pricing

What It Costs
(And What You Get)

One-Time Setup

$4,995

Fund My Franchise fee to design and install your 401(k) Profit Sharing Plan.

Monthly Admin

$145/mo

Tenet Financial Group's ongoing administration fee, billed monthly starting the month after your plan's effective date.

Time to Fund

3–4 weeks

Average time from kickoff to capitalized business. Paycheck possible in 4–5 weeks.

Most franchise buyers combine ROBS with at least one other funding source.

Explore the pieces that often pair well with a rollover:

SBA LoansUnsecured Credit LinesPersonal Loans
The Process

From First Call
to Funded

01

Free Consultation

A short call with Al Lesko — review your retirement accounts, franchise plans, and whether ROBS is the right fit for your situation.

02

C-Corp Formation

We work with Tenet Financial Group to form your C-Corporation (required for ROBS) and design your new 401(k) Profit Sharing Plan.

03

Rollover & Investment

Your existing retirement funds roll into the new 401(k) plan, which then invests in stock of your C-Corp. Your business is capitalized.

04

Ongoing Administration

Tenet serves as your Third-Party Administrator — handling plan records, compliance, and IRS support for the life of your plan.

Got Questions?

ROBS Rollover
Questions Answered

ROBS can be structured within retirement-plan rules, but it is not blanket-approved by the IRS. An IRS determination letter addresses the plan's written terms; it does not protect improper operation, discrimination, or prohibited transactions. Involve your CPA and an attorney familiar with retirement plans before moving funds, and plan for ongoing administration after funding.

Fund My Franchise charges $4,995 to design and install the 401(k) Profit Sharing Plan. Tenet Financial Group (our Third-Party Administrator) charges $145/month for ongoing plan administration, billed monthly starting the month after your plan's effective date. No hidden fees.

Average time to fund the corporation is 3 to 4 weeks from start to finish. That includes forming your C-Corporation, designing the 401(k) plan, rolling your existing retirement funds in, and capitalizing the business.

Yes. You can pay yourself a salary as soon as you capitalize the business — typically 4 to 5 weeks in. We recommend consulting your tax advisor on specific salary and payroll structure.

A retirement plan is only permitted to purchase stock of the plan sponsor if the plan sponsor is a "separate taxpaying entity." A C-Corporation is the only corporate structure that qualifies. S-Corps, LLCs, and sole proprietorships don't meet the requirement.

If you receive an IRS inquiry, keep the notice and its response deadline, then contact your plan administrator and tax adviser promptly. Gather the requested plan documents, filings, employee records, valuations, and transaction history. Confirm in your agreement what support Tenet Financial Group provides and whether separate legal or tax representation is needed. A provider cannot guarantee that a plan will avoid review or an audit. See our complete ROBS Compliance Guide for what the IRS actually reviews and how to stay compliant.

Yes. Your tax advisor plays an integral role in making sure your opening balance sheet is correct and your ongoing administrative responsibilities are met. We strongly recommend a conversation with your CPA as part of the process.

Go Deeper

Where a Rollover Fits in the Bigger Plan

ROBS is rarely the whole answer. These guides show how it combines with the rest of your funding.

Funding GuideFinancing a Franchise: 7 Funding Options ComparedROBS next to SBA 7(a), unsecured credit, personal loans, HELOC, seller financing, and equipment leasing, with the honest downside of each.Read it
Planning GuideHow Much Cash Do You Need to Buy a Franchise?Three funding-stack scenarios on the same project, including one where rolled-over retirement funds replace part of the loan.Read it
Guides & ToolsAll Fund My Franchise ResourcesThe SBA loan calculator, the business credit guide, the borrowing-right guide, and everything else in one place.Read it

Ready to See If
ROBS Is Right for You?

A free call with Al Lesko — review your retirement accounts, franchise plans, and whether a ROBS rollover fits your situation. No obligation.

Get Your Free Assessment
Free initial consultation
No obligation
CPA-friendly process