Franchise Glossary
ROBS (Rollover for Business Startups)
What is ROBS (Rollover for Business Startups) in franchising?
A legal financing structure that allows business owners to use 401(k) or other qualified retirement funds to invest in a business without triggering early withdrawal penalties or income taxes. ROBS requires setting up a C-corporation and following strict IRS compliance rules. It is a legitimate and common franchise financing tool when structured properly by a qualified provider.