FDD Item 17: What to Check on Renewal, Termination, and Transfer
FDD Item 17 covers the franchise term, renewal, termination, and transfer. What to check in each row, what is negotiable, and what Item 17 leaves out.
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Articles about franchise evaluation costs, funding sources, and care planning.
Why FDD Item 7 Understates Your Franchise Investment by 15-20% (And What to Add)
FDD Item 7 understates real franchise opening cost by 15-20%. The 5 hidden costs the initial investment table leaves out, and how to add them back.
No Item 19 in the FDD? Here's What a Missing Earnings Claim Actually Tells You
A missing FDD Item 19 isn't automatically a dealbreaker. Here's what a blank earnings claim means and a decision framework for what to do next.
The Franchise Fee Stack: When Royalty + Ad Fund + Tech Fees Crush Your Unit Economics
Total the franchise fee stack: royalty + ad fund + tech fee. Worked example showing how a few points cost $40K/year on a $1M unit.
Franchise Territory Encroachment: How Online Ordering and Ghost Kitchens Slip Through Item 12
How franchise territory encroachment slips through Item 12 via online ordering, delivery apps, and ghost kitchens - and what to look for before you sign.
12 Franchise Validation Call Questions That Get Honest Answers (and 3 That Don't)
Franchise validation call questions that get honest answers from existing franchisees, plus 3 to skip. The 8-15 call workflow experienced buyers use.
Is a Franchise Attorney FDD Review Worth $2,500? The 8 Things They Catch That You Won't
Is a franchise attorney FDD review worth $2,500? When to get one and the 8 contract terms a specialist catches that you won't on a 10-year agreement.
Franchise Due Diligence Timeline: The 6-Week Workflow Experienced Buyers Follow
The franchise due diligence timeline experienced buyers run: a 6-week workflow, 40-60 hours, and the questions that decide go or no-go before you sign.
Franchise SBA Default Rates by Brand: The External Signal Item 19 Won't Give You
A franchise brand's SBA loan default rate is the external signal Item 19 won't give you. How to read it, where to find it, and two traps to avoid.
Reading FDD Item 3 Litigation: When a Lawsuit List Is Routine vs. a Real Warning
How to interpret FDD Item 3 litigation history: telling routine large-system lawsuits from real warnings like earnings-claim and franchisee group suits.
What Is Actually Negotiable in a Franchise Agreement? Personal Guarantee and Non-Compete, Decoded
What is actually negotiable in a franchise agreement: personal guarantee caps and spousal carve-outs often move; the non-compete rarely does. A buyer map.
SBA 7(a) Franchise Loans in 2026: Directory Changes, the 10% Equity Rule, and What to Prepare
SBA 7(a) franchise loan rules changed in 2026: directory re-certification, 10% equity, SBSS scoring retired. What to confirm and prepare before applying.
Franchise Broker Conflict of Interest: Who Pays the 40% Commission
Franchise brokers earn 40-50% of your franchise fee from the franchisor. Here's how the commission conflict of interest works and how to protect yourself.
Franchise Discovery Day: What to Expect and How to Handle Sales Pressure
What to expect at a franchise Discovery Day, why it's a sales event, and how to handle the pressure: decline same-day closes and verify every claim.
How to Read FDD Item 21: Franchisor Financial Statements and Red Flags
How to read FDD Item 21, the franchisor's audited financial statements. Four checks for profitability, cash flow, leverage, and going-concern red flags.
Franchise Resale Due Diligence: Five Checks Buyers Miss on an Existing Unit
Franchise resale due diligence: five checks buyers miss when buying an existing franchise unit, from the current fee stack to Item 20 repeat transfers.
Franchise Cash-on-Cash Return vs. ROI: How SBA Financing Changes the Math
Cash-on-cash return and ROI on total investment answer different questions. See how SBA 7(a) leverage pulls them apart, with worked franchise math.
Franchise Payback Period: The Owner's Salary Trick That Makes Bad Franchises Look Profitable
Most franchise payback math counts the owner's 0K salary as 'return' and shows 2-year payback. Strip it out and the same franchise pays back in 5 years.
How Much Working Capital Do You Really Need to Open a Franchise? (Hint: Item 7's 3 Months Is Wrong)
Item 7's '3 months additional funds' is a disclosure floor, not a budget. How to size a real working capital reserve for a franchise at 6-12 months.
Franchise ROI Calculator: Why Most Online Tools Overstate Your Returns by 30-50%
Why online franchise ROI calculators overstate returns 30-50%: flat Item 19 revenue, owner's salary as return, no ramp curve. The practitioner fix.
Reading FDD Item 20: The Scoreboard That Tells You If a Franchise Is Actually Growing
How to analyze FDD Item 20 turnover: the four ratios experienced buyers compute before calling a single franchisee.
Semi-Absentee Franchise Reality: Why the 10-Hour Claim Usually Means 30+
Why semi-absentee franchises marketed as 10 hours a week typically require 20-30. How to verify actual hours with validation calls.
FDD Item 19 Red Flags: Why the Average Can Lie and the Median Usually Tells the Truth
Six Item 19 red flags to look for and how practitioners interpret average vs median in the FDD earnings claim.
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