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.
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.
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.
Total the franchise fee stack: royalty + ad fund + tech fee. Worked example showing how a few points cost $40K/year on a $1M unit.
How franchise territory encroachment slips through Item 12 via online ordering, delivery apps, and ghost kitchens - and what to look for before you sign.
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? When to get one and the 8 contract terms a specialist catches that you won't on a 10-year agreement.
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.
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.
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.
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, 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 when buying an existing franchise unit, from the current fee stack to Item 20 repeat transfers.
How to analyze FDD Item 20 turnover: the four ratios experienced buyers compute before calling a single franchisee.
Why semi-absentee franchises marketed as 10 hours a week typically require 20-30. How to verify actual hours with validation calls.
Six Item 19 red flags to look for and how practitioners interpret average vs median in the FDD earnings claim.