As franchisor you carry very limited to zero financial risk from each new franchisee setup. The franchisee typically pays upfront for the entire equipment required to set up: the donut equipment, including the robot, shop fixtures, counter, fridge, mixer, store signage, etc. The initial fee the franchisee pays for training and equipment plus the ongoing maintenance fee provide the franchisor with secure revenue stream, while taking on much less of the financial risks.
Please note, however, that while carrying less risk, you must also be prepared to rake in less reward. The fee structure must be such that it makes it financially viable for franchisees to partner with you. Setting the fees too high will discourage operators. Often franchisors also forego fees until the franchisee business hits certain revenue or profitability thresholds. Deep understanding of your profit margins and drivers is required to be able to set up a successful franchise and guide your franchisees to success.
More risk can be carried by the franchisor if the franchisee leases instead of buys equipment from the franchisor. It’s an option that allows the franchisee to start up operations easier and can add some opportunity for additional risk/reward to the franchisor who provides the leasing service.