INSIGHTS & GUIDES
Practical guides on FDD analysis, franchise due diligence, and what to look for before making a $150,000+ commitment.
START HERE
The Foundation
Every item in an FDD explained in plain English — what it contains, what to look for, and what the red flags look like.
Read More →The Key Number
Item 19 is the financial performance section. Most franchisors present it in a way that flatters the system. Here is how to read it correctly.
Read More →What to Watch For
The warning signs that actually matter — litigation patterns, franchisee turnover, going concern qualifications, and what is missing from Item 19.
Read More →April 19, 2026
You've found a franchise you're excited about. Then someone hands you a 200 to 400 page legal document written almost entirely to protect the person selling you the franchise. This guide breaks down all 23 Items in an FDD, what each one actually tells you, and what to look for before you commit.
Read More →March 22, 2026
Most franchise buyers focus on the wrong things when reading an FDD. Here are the 5 red flags that actually matter and that most people never catch before signing.
Read More →February 22, 2026
Item 19 is the financial performance section of a Franchise Disclosure Document. Here is what it actually tells you, what it leaves out, and how to read it correctly before investing.
Read More →January 25, 2026
Most people dramatically underestimate how long it takes to properly review an FDD. Here is what a thorough analysis actually involves and how long each part takes.
Read More →FREE RESOURCES
Get new FDD guides in your inbox.
Plain-English guides on reading franchise disclosure documents, delivered as they're published. No spam.
December 28, 2025
Before you sign a franchise agreement, the franchisor is legally required to hand you a Franchise Disclosure Document. Most buyers skim it. Here's what each section actually tells you and what to look for before you commit.
Read More →November 30, 2025
Item 19 is the most anticipated and most misunderstood section of any FDD. Here's how to read it correctly and what the numbers actually tell you.
Read More →November 2, 2025
Territory rights are one of the most negotiated and most misunderstood elements of any franchise agreement. What you're actually getting may be very different from what you think you're getting.
Read More →October 5, 2025
Item 20 of the FDD gives you a list of every current and former franchisee in the system. Most buyers never call them. The ones who do, and ask the right questions, make significantly better decisions.
Read More →September 7, 2025
The franchise salesperson will quote you an initial franchise fee. That number is almost always the smallest check you will write. This guide breaks down every cost category — from the franchise fee to working capital reserves — so you know the real number before you commit.
Read More →August 10, 2025
Item 7 of the Franchise Disclosure Document is the most important financial table in the entire document. It is also the most frequently misread. This guide explains every line item, why the low end of the range is almost always misleading, and how to use Item 7 to build a realistic pre-opening budget.
Read More →July 13, 2025
The royalty fee is the price you pay for the right to use the brand and system every week for the life of your franchise. Understanding how royalties work, what rates are typical, and what structures to avoid is one of the most important parts of evaluating any franchise opportunity.
Read More →June 15, 2025
The franchise agreement is the legally binding contract that governs your relationship with the franchisor for the next 10 to 20 years. Unlike the FDD, which is a disclosure document, the franchise agreement is what you actually sign. This guide explains every key term, what is negotiable, and what red flags to look for before you commit.
Read More →May 12, 2025
You just received a Franchise Disclosure Document. Maybe it came from your franchise broker, maybe directly from the franchisor. Either way, you are now holding a 200-plus page legal document that stands between you and a $150,000 to $1,000,000 commitment. Here is exactly what to do next.
Read More →