FranFund vs Pango Financial: ROBS Provider Comparison

If you are comparing FranFund and Pango Financial, start with fit rather than a blanket ranking. FranFund's public pages give more visible support for continuing administration details and separately priced loan packaging. Pango's public pages give more visible support for online setup/account features, lower monthly maintenance and role-limit disclaimers. That does not make either provider safer, cheaper in every case, or better for every transaction.

The correct next step is to ask both providers for the same written scope: setup fee, monthly administration fee, state and registered-agent charges, custodian or investment fees, valuation responsibility, employee charges, correction fees, audit support, cancellation and refund terms, data export, and exit or plan-termination support. The DOL's fee guidance supports this same service-by-service comparison approach for retirement-plan fiduciaries.^[2]

A rollover as business start-up, or ROBS, generally moves eligible retirement assets into a qualified retirement plan sponsored by a C corporation. The plan then purchases stock in that C corporation. The corporation receives cash for operating or acquisition needs, while the retirement plan receives employer stock. The IRS describes this structure and warns that operational failures can create qualification, prohibited-transaction, filing, valuation and tax consequences.^[1]

The individual does not personally receive the rollover as spendable cash. The retirement plan owns employer stock. The C corporation owns and operates the business assets or acquisition proceeds. A custodian, trustee or plan account may hold plan assets before the stock purchase, while the corporation's bank account receives money only when the plan buys stock under the transaction documents.

That sequence explains why both providers' formation, rollover, stock-certificate, valuation and administration language matters. A provider may help coordinate pieces of the transaction, but the buyer still needs a lawful C corporation, a qualified plan document, rollover paperwork, stock subscription and issuance records, valuation support, plan and corporate bank accounts, and continuing plan administration.

A ROBS transaction normally involves several actors: the prospective business owner, the new C corporation, the corporation's qualified retirement plan, the plan trustee or fiduciaries, any custodian or plan bank, the provider or TPA, the corporate bank, the valuation provider, and often a CPA, attorney, lender, franchisor or business seller. Pango expressly states that it is not a lender, fiduciary, trustee, or financial or legal advisor; retirement plan fiduciaries and trustees remain responsible for plan design and investment direction.^[5]

The asset movement should be documented in order: eligible retirement assets roll into the new plan, the plan purchases employer stock, and the corporation receives capital. Common documents include articles of incorporation, bylaws, organizational minutes, EIN records, plan and trust documents, plan TIN records, bank or custodial account instructions, rollover forms, stock certificates, stock ledger, stock-purchase calculations, valuation support and annual filing records. FranFund and Pango both publish support for multiple pieces of that document chain.^[3][6][7]

Timing depends on state incorporation processing, rollover processing, plan setup, valuation and any lender, seller or franchisor deadline. Pango says incorporation, plan setup and investment are usually completed in two to three weeks in most states, while also noting state turnaround differences and a California expedited-fee exception.^[6] Treat that as provider-reported timing, not a guarantee for a specific closing.

The following table preserves the exact arithmetic for the selected comparison scenarios. It also separates source limitations: Pango publishes conflicting setup prices, and FranFund's source check on August 13, 2026 found a live setup amount that differs from the selected arithmetic. Written provider quotes should control a real buying decision.

FranFund also publishes a separate Business Loans fee. That may matter if you are combining ROBS with SBA or conventional financing, but it should not be blended into the base ROBS setup and administration scenarios.

This service-scope table is a buyer's question list. The labels show whether a checked public page states the item, mentions it more generally, or did not show the item in the reviewed pages. They do not score quality, service speed, legal sufficiency, or contract enforceability.

FranFund may deserve first diligence if your transaction needs documented TPA breadth, employee census and enrollment support, annual FMV support, Form 1099-R/Form 945 language, audit-assistance language, amendments/restatements, or help packaging a separate business loan. Its homepage also emphasizes franchise-specific pre-approval and a lender network, which can matter when a franchisor or SBA lender has a tight funding package.^[3][4]

Pango may deserve first diligence if you value lower published monthly maintenance, online setup/status/account access, a publicly described C-corporation requirement, and explicit language about what Pango is not responsible for. It may also be attractive for a brand-new C corporation that fits Pango's included valuation limitation, but that limitation should be read literally: the comparison page says the certified third-party valuation is only available for brand new C corporations that were not capitalized prior to engagement.^[5][6][7][8]

Either conclusion can reverse if the live quote, contract, state fees, registered-agent renewal, employee count, asset custodian, valuation need, exit plan, lender timing, or correction support differs from the public pages. A lower monthly fee is not automatically a lower total cost. A broader public service list is not automatically better execution.

ROBS risk is not limited to setup. The plan has exchanged diversified retirement assets for stock in one privately held C corporation. If the business fails, the plan's employer stock can lose value. The IRS project reported high rates of failed or failing ROBS businesses, bankruptcy, liens, dissolutions, depleted retirement savings, recurring promoter fees and legal issues among examined arrangements.^[1]

Compliance risk also continues after the stock purchase. The IRS specifically points to Form 5500/Form 1120 filing misunderstandings, participant issues, stock valuation, plan amendments that restrict later employee participation, promoter fees and failure to issue Form 1099-R. Employees who meet plan eligibility terms may need the option to participate; Pango's FAQ states that eligible employees must have that option, and FranFund's TPA list includes census review, enrollment support and employee notifications.^[1][3][6]

Exit and failure planning should be discussed before funding. If the business is sold, shut down, refinanced, converted, diluted, or unable to continue, someone must address employer-stock value, plan assets, participant accounts, final filings, possible stock redemption, valuation support, payroll and tax reporting. The checked provider pages did not give enough public detail to assign either provider a clear exit-support advantage.

ROBS is one funding structure, not the default answer to every business purchase. Compare it with SBA 7(a) debt, seller financing, conventional bank loans, equipment financing, home-equity financing, taxable retirement withdrawals, cash savings, outside equity and smaller launch plans. The right comparison should include taxes, penalties, interest, fees, collateral, personal guarantees, equity dilution, working capital, retirement concentration, employee-plan administration, opportunity cost and exit consequences.

For example, an SBA loan may preserve retirement diversification but add debt service, underwriting time, collateral requirements and often a personal guarantee. A taxable retirement withdrawal may be simpler structurally because it does not require a C corporation plan stock purchase. Outside equity can reduce debt pressure but dilutes ownership. A smaller launch may avoid both debt and retirement-plan complexity but could leave the business undercapitalized. None of these alternatives is universally better; each changes who bears risk and when cash leaves the business.

Use the same written request with both providers so the answers are comparable. Ask for the current setup fee, recurring fee, included TPA services, state fees, registered-agent renewals, custodian or plan-account charges, investment fees, participant charges, annual valuation method, Form 5500/Form 1099-R/Form 945 responsibility, audit support, plan amendments, corrections, refund rights, cancellation timing, cybersecurity practices, data export, provider transition, sale support and plan termination costs.

Then involve the right outside professionals for the actual transaction: an ERISA or benefits attorney for plan and fiduciary questions, a CPA for corporate and payroll tax coordination, a valuation professional for employer stock, a lender for any debt package, and a franchise or acquisition advisor if a franchisor or seller controls timing. A provider can coordinate tasks, but the buyer remains responsible for understanding the structure before retirement-plan assets become concentrated in the business.

These short answers summarize the comparison, but they do not replace written quotes or provider contracts.

The comparison uses official IRS and DOL sources for structural and fiduciary boundaries, and provider-controlled pages for provider pricing and service claims. Provider pages can change, so the date and limitation on each source matters.

1. 1. IRS ROBS compliance project

   Official source checked August 13, 2026. The IRS describes a ROBS as an arrangement in which retirement funds are rolled into a plan that purchases stock of a new C corporation; it flags Form 5500/Form 1120, rollover, participant, stock-valuation, promoter-fee, nondiscrimination, prohibited-transaction and Form 1099-R issues, and says a determination letter does not protect sponsors from operational failures.

2. 2. DOL: Understanding Retirement Plan Fees and Expenses

   Official source checked August 13, 2026. The DOL states that plan fiduciaries must prudently select and monitor service providers, understand services and compensation, compare bundled and unbundled arrangements, consider participant communications and reports, and keep monitoring fees after selection.

3. 3. FranFund pricing

   Provider source checked August 13, 2026. FranFund's pricing page displayed $4,995 for 401(k) Business Funding, $165/month for TPA, and $2,500 for Business Loans. This comparison preserves the selected $4,995 FranPlan arithmetic separately and notes that a fresh written quote should control any buying decision.

4. 4. FranFund homepage

   Provider source checked August 13, 2026. FranFund describes a process that explores SBA Loans and FranPlan 401(k)/IRA rollover funding, a franchise-specific FranScore pre-approval report, in-house teams, continued TPA guidance, and a franchise-friendly lender network.

5. 5. Pango 401(k) ROBS Business Financing

   Provider source checked August 13, 2026. Pango describes DreamSpark as ROBS business financing, says the plan can start at just $4,695, and lists incorporation setup, certified business valuation for new businesses, registered-agent services, low monthly maintenance, customized retirement-plan setup, and 24/7 online account management.

6. 6. Pango common questions

   Provider source checked August 13, 2026. Pango's FAQ says the DreamSpark one-time setup fee is $4,695 and maintenance is $129/month, but a separate answer on the same page says the setup fee is only $3,995 plus $129/month. It also states Roth IRAs, nongovernmental 457 plans and non-spouse death-benefit IRAs are ineligible; the business must be a C corporation and cannot be a sole proprietor, partnership, S corp., LLC, nonprofit or professional service corporation.

7. 7. Pango DreamSpark comparison

   Provider source checked August 13, 2026. Pango's comparison table lists a $4,695 program setup fee, $129 monthly plan maintenance and support, online setup/status/forum features, incorporation, EIN, plan TIN, stock certificates and ledger, bank-account and rollover instructions, and a certified third-party valuation only for brand new C corporations not capitalized before engagement.

8. 8. Pango DreamSpark Plan and Maintenance

   Provider source checked August 13, 2026. Pango says onboarding and compliance specialists set up and manage the DreamSpark plan, with maintenance access for Form 5500, compliance testing, documentation maintenance, plan reconciliation, participant statements, vesting, eligibility tracking, plan-design support, and a $129 monthly fee.

Update this page when FranFund or Pango changes pricing, Pango resolves its setup-price conflict, either provider publishes correction or exit terms, the IRS or DOL changes relevant guidance, or provider contracts disclose materially different service scope.