FranFund vs Directed Equity: ROBS Provider Comparison

FranFund is easier to evaluate when the first question is, “What can I reproduce from public ROBS pricing?” Its assigned public inputs are a $4,995 one-time FranPlan setup fee and a $165/month required TPA fee.^[3] Directed Equity is easier to evaluate when the first question is, “Does the public page describe a ROBS process and adjacent lending options?” Its directINVEST page describes a C corporation, retirement plan setup, rollover and business investment sequence, while separate pages describe SBA, conventional and equipment financing.^[5][7][8]

If your shortlist includes more full-service administration brands, compare Benetrends vs IRA Financial alongside this provider review.

The comparison stops short of naming a winner because the evidence is uneven. FranFund publishes enough to calculate base FranPlan cost. Directed Equity does not publish complete directINVEST setup, recurring, first-year or three-year pricing in the checked source set.^[5][6][9] Do not compare these as equivalent-scope totals.

A ROBS transaction moves eligible retirement-plan assets into a new qualified retirement plan sponsored by a C corporation. The plan then purchases employer stock in that corporation. The corporation receives cash from the stock purchase and can use corporate funds for the operating business. The retirement plan receives private employer stock, so the participant's retirement value becomes tied to the business value.^[1]

FranFund's public base ROBS math can be calculated from published setup and monthly TPA inputs; Directed Equity's complete directINVEST cost cannot be calculated from the checked public pages.

The FranFund calculations are deliberately simple: $4,995 + ($165 × 12) = $6,975 for year one, and $4,995 + ($165 × 36) = $10,935 for three years. The annualized recurring component is $165 × 12 = $1,980.

Directed Equity setup, recurring, first-year and three-year ROBS totals are unknown. The $10,000 to $500,000 equipment range is equipment financing only, not directINVEST pricing.^[8]

Both providers describe ROBS setup steps, but FranFund publishes more task-level implementation detail while Directed Equity leaves more delivery detail for the written engagement.

Both providers describe the essential ROBS motion: create or use a C corporation, establish a plan, move eligible retirement assets and invest in the business through employer stock. The due-diligence difference is that FranFund names more implementation components publicly, including EIN, corporate checking account support, asset transfers and stock certificates.^[3] Directed Equity names the four directINVEST steps but leaves more actor-level detail to the quote or engagement documents.^[5]

FranFund publishes ongoing TPA tasks and pricing; Directed Equity's checked pages do not publish parallel ongoing ROBS administration scope or price.

FranFund publishes a required TPA fee and a long list of TPA tasks: contribution allocation, annual compliance testing, Form 5500, 1099-R, Form 945, fair-market-value support, participant reporting, census/enrollment support, amendments/restatements and audit assistance.^[3] Directed Equity's checked pages do not publish a parallel ongoing administration list or price, so a buyer should request those terms before comparing costs.

FranFund states that FranPlan funds may be used as the equity injection for an SBA loan and separately prices Business Loans packaging at $2,500.^[3][4] Directed Equity describes SBA 7(a) and 504 guidance, a lender network, conventional lending and equipment lease or finance programs.^[7][8] Those services may matter in a franchise or acquisition funding stack, but they should be quoted apart from ROBS setup and plan administration.

Professional-service language also requires care. FranFund names attorney consultation for corporation and 401(k) plan formations.^[3] Directed Equity says attorneys, CPAs and financing experts guide entrepreneurs and that directINVEST includes management of financial transactions, legal paperwork and tax planning.^[5][9] The public pages do not establish the full scope of legal advice, CPA engagement, tax-return work, audit representation, professional liability, privilege or separate fees.

The IRS describes ROBS scrutiny around plan status, contributions, rollover or direct transfer, participants, stock valuation and stock purchases, business information and required filings.^[1] The DOL explains that fiduciaries must select and monitor service providers, understand fees, follow the written plan, provide participant information, avoid prohibited transactions and complete reporting duties.^[2]

The practical answer changes by scenario, so use these examples to decide which provider questions matter before treating either company as the better fit.

Use the contract questions to turn the public comparison into a written apples-to-apples scope before relying on either provider's marketing page.

• What are the exact setup, monthly, annual and one-time fees for the ROBS arrangement?
• Which services are included, which are optional, and which are performed by outside attorneys, CPAs, valuation professionals, lenders or custodians?
• Who forms the C corporation, obtains EINs, opens bank/trust/custodian/brokerage accounts, prepares plan documents, coordinates the rollover and documents the stock purchase?
• Who handles Form 5500, 1099-R, Form 945, annual testing, participant notices, amendments, fair-market-value support, audit requests and correction work?
• What happens if employees become eligible, the business fails, the company is sold, the plan needs to terminate, or the owner changes providers?
• What are the refund, cancellation, data-export, cybersecurity, fiduciary-status, indemnity, limitation-of-liability, arbitration and referral-compensation terms?

The responsible next step is to verify eligibility, total cost, professional review needs and funding alternatives before committing retirement-plan assets to either provider process.

1. Confirm account eligibility and distribution availability from the source plan or IRA documents.
2. Model the rollover amount against remaining retirement diversification, working capital, debt needs and downside risk.
3. Ask each provider for the same written scope and fee schedule, including unknown Directed Equity directINVEST inputs.
4. Have an ERISA attorney, CPA, valuation professional, lender and plan administrator review facts that affect your specific transaction.
5. Compare ROBS against SBA debt, conventional financing, seller financing, cash and taxable distribution alternatives using total cost, risk and exit consequences.

These FAQs answer the cost, scope and financing-boundary questions most likely to change a FranFund versus Directed Equity decision.

The comparison relies on government ROBS and fiduciary-duty sources plus provider-controlled pages for current public pricing, scope and financing claims.

1. [1] IRS ROBS compliance project

   Official boundary source re-opened July 31, 2026: ROBS uses retirement funds to buy new C corporation stock; IRS checks address plan status, contributions, rollover/direct transfer, participants, stock valuation and purchases, business information, Form 5500/5500-EZ and Form 1120; determination letters do not protect operational failures.

   Open source

2. [2] DOL: Meeting Your Fiduciary Responsibilities

   Official boundary source re-opened July 31, 2026: fiduciaries select and monitor providers, operate the written plan, review reasonable fees, furnish participant documents, handle Form 5500 reporting, avoid prohibited transactions, maintain bonding where required, use correction programs when available, and make a fiduciary handoff at termination.

   Open source

3. [3] FranFund pricing

   Provider-controlled source re-opened July 31, 2026: FranFund's checked pricing page states $4,995 one-time 401(k) Business Funding setup fee and $165/month required TPA fee; setup includes corporation establishment, organizational documents, federal tax ID, assistance establishing a 401(k) plan and corporate checking account, asset transfers, stock certificates and attorney consultation; TPA includes contribution allocation, annual compliance testing, Form 5500, 1099-R, Form 945, annual fair market value support, SAR and benefit statements, census/enrollment support, amendments/restatements, IRS and DOL audit assistance, transaction documents, employee notifications, trustee education, mid-year projections, plan-design consultations and QDRO review; business loan packaging is separate.

   Open source

4. [4] FranFund 401(k) Business Funding

   Provider-controlled source re-opened July 31, 2026: FranPlan is FranFund's ROBS program; qualifying account examples include 401(k), 403(b), governmental 457, ESOPs, IRAs and other accounts; funds may be available in as little as 10 days; the process normally takes 15 to 20 business days with most time allocated to moving funds; funds may be used as SBA equity injection; after rollover, an in-house TPA team manages the plan; audit rate is provider-reported as less than 1% with no disqualified plans during an audit.

   Open source

5. [5] Directed Equity directINVEST

   Provider-controlled source re-opened July 31, 2026: directINVEST is a self-directed 401(k) ROBS program using existing 401(k), IRA or other qualified pre-tax retirement savings to fund a franchise or small business; funds may be used for franchise fees, equipment, leasehold improvements, working capital or other expenses; attorneys, CPAs and financing experts guide entrepreneurs; the four-step process is establish a C corporation, set up a retirement plan, roll over retirement funds and invest funds into the business; no directINVEST setup, recurring, first-year or three-year price was published in accessible text.

   Open source

6. [6] Directed Equity home

   Provider-controlled source re-opened July 31, 2026: Directed Equity describes financing solutions from ROBS to SBA lending under one roof and team backgrounds in accounting, tax law, small-business ownership and franchising; public home language does not publish directINVEST ROBS pricing or ongoing administration scope.

   Open source

7. [7] Directed Equity SBA lending

   Provider-controlled source re-opened July 31, 2026: SBA 7(a) and 504 loan guidance, a large SBA lender network, application and funding assistance, and SBA uses including franchise fees, build-out costs, equipment, fixtures and working capital are separate loan-advisory claims, not directINVEST ROBS pricing.

   Open source

8. [8] Directed Equity additional funding

   Provider-controlled source re-opened July 31, 2026: conventional financing and equipment lease or finance programs are separate from directINVEST; equipment programs range from $10,000 to $500,000, which is equipment-financing capacity, not ROBS setup or administration pricing.

   Open source

9. [9] Directed Equity directEDUCATE

   Provider-controlled source re-opened July 31, 2026: one-on-one financing education covers 401(k), SBA, conventional and equipment financing plus tax planning and wealth-accumulation strategies; directINVEST is described as including management of financial transactions, legal paperwork and tax planning, but exact deliverables and fees remain contract-dependent.

   Open source

10. [10] Directed Equity referral partner contact

    Provider-controlled source re-opened July 31, 2026: bank development officers, loan officers, CPAs, attorneys and other business and financing professionals are invited to refer entrepreneurs; compensation amounts, exclusivity, approval criteria and referral contract terms were not published in accessible text.

    Open source

These related pages help place the provider comparison inside broader ROBS provider, fee and financing decisions.