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.
Total the franchise fee stack: royalty + ad fund + tech fee. Worked example showing how a few points cost $40K/year on a $1M unit.
SBA 7(a) franchise loan rules changed in 2026: directory re-certification, 10% equity, SBSS scoring retired. What to confirm and prepare before applying.
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.
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.
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.
Why online franchise ROI calculators overstate returns 30-50%: flat Item 19 revenue, owner's salary as return, no ramp curve. The practitioner fix.
Why semi-absentee franchises marketed as 10 hours a week typically require 20-30. How to verify actual hours with validation calls.