Understand the franchise before you buy the franchise.
Upload the Franchise Disclosure Document and get a prospective-franchisee risk report: real fees, total investment, whether Item 19 backs up any earnings claims, your territory, renewal and termination, non-competes, and franchisor litigation — each tied to a quote from the FDD.
- Framed on the FTC Franchise Rule, from the franchisee's side
- Free preview first — unlock the full report for $50
- Handles long FDDs and scanned PDFs (OCR)
Last reviewed: May 26, 2026 by the BizLeaseCheck Editorial Team. General information, not legal advice.
Franchise Disclosure (FDD) Analysis
A representative franchise fdd sample report — danger score 89/100, 8 red flags with verbatim evidence quotes, no signup needed.
Compare: AI vs. a franchise attorney · vs. doing it yourself
What the FDD analyzer checks
The review works through the FDD Items that actually decide the economics and your ability to exit — the questions a careful franchise buyer (and their attorney) would ask.
Fees — Items 5 & 6
The initial franchise fee, plus ongoing royalty, brand/ad-fund, transfer, renewal, technology, and audit fees — especially fees charged on gross sales rather than profit.
Total investment — Item 7
The low–high investment range, what it excludes, and whether the stated working capital is realistic for the ramp-up period.
Item 19 earnings claims
Whether a Financial Performance Representation is present at all — and if so, its basis, sample size, averages vs. medians, and disclaimers. If absent, earnings expectations are unsupported.
Territory — Item 12
Whether you get a protected or exclusive territory, and what online, alternate-channel, affiliated-brand, or nearby-competition rights the franchisor reserves.
Term, renewal & termination — Item 17
Renewal conditions, general-release and then-current-agreement requirements, cure periods, and how broadly the franchisor can terminate vs. how narrowly you can exit.
Transfer & assignment
Franchisor consent, transfer fees, buyer qualifications, right of first refusal, and mandatory releases when you try to sell.
Non-compete covenants
In-term and post-term non-competes — their scope, duration, and geographic reach, and how they limit your next move.
Litigation & bankruptcy — Items 3 & 4
Patterns of franchisor-initiated suits, repeated franchisee claims, and any bankruptcy history.
Outlets, suppliers & financials — Items 20, 8, 21
Openings, closings, terminations and transfers; required-purchase and approved-supplier rebates; and franchisor financial health, including over-reliance on initial-fee revenue.
A specialist in franchise disclosure — not a generic document tool
FDDs follow a fixed structure of 23 numbered Items under the FTC Franchise Rule — 16 CFR Part 436 — and must be delivered at least 14 days before you sign. The analyzer reads the FDD against that framework from the prospective franchisee's side. Franchise registration and relationship laws also vary by state — see the state franchise-law guides. Authoritative guidance lives at the FTC.
What you get
- A 0–100 danger score with a category-by-category breakdown
- A franchise summary: brand, initial fee, investment range, royalty and ad-fund fees, term, renewal, territory protection, Item 19 presence, litigation/bankruptcy, and non-compete
- Prioritized red flags — each tied to a short quote pulled from the FDD
- Key dates: FDD issuance, the earliest date you may sign under the 14-day rule, and renewal-notice deadlines
- A ready-to-send list of questions to raise with the franchisor and a franchise attorney before signing
How it works
Go deeper: FDD guides
FTC-cited guides on how to read an FDD, Item by Item.
How to Read an FDD: 23 Items, 14-Day Rule & Franchise Risk Review
A practical, FTC-cited framework for reading the FDD before you sign a franchise agreement or pay the franchisor.
FDD Item 19 Guide: Financial Performance Representations & Missing FPRs
Item 19 is where franchisor performance claims live when they are made. Learn what the disclosure can and cannot prove.
Franchise Fees Explained: Initial Fee, Royalties, Ad Fund & Transfer Fees
Franchise fees are more than the initial franchise fee. Item 5 and Item 6 show the cost structure you need to model.
FDD Item 7 Estimated Initial Investment: Low-High Range & Working Capital
Item 7 is the franchise startup-cost table. The hard part is deciding whether the disclosed range is enough for your site, ramp, and financing.
Franchise Territory Rights: Protected Territory, Online Sales & Encroachment
A protected territory is only as strong as its definitions, carve-outs, reserved channels, and remedies.
FDD Item 17 Guide: Renewal, Termination, Transfer & Covenants
Item 17 is where exit, renewal, default, transfer, dispute, and post-term restrictions become practical owner risk.
FDD Items 3 and 4: Franchisor Litigation, Bankruptcy & Pattern Review
Litigation and bankruptcy disclosures do not answer every risk question, but they can show patterns worth investigating.
FDD Item 20 Guide: Outlets, Franchisee Turnover & Who to Call
Item 20 is where the system footprint and turnover story become visible enough to investigate.
FDD Item 21 Guide: Franchisor Financial Statements & Support Risk
Item 21 helps you ask whether the franchisor has the financial capacity to support the system it is selling.
FDD Item 8 Guide: Supplier Restrictions, Approved Vendors & Rebates
Required suppliers can protect brand standards, but they can also change margins and operating flexibility.
The FDD 14-Day Rule: Disclosure Timing, Receipts & Signing Deadlines
The 14-day rule is a minimum federal disclosure timing protection, not a deadline to finish diligence.
FDD Red Flags Checklist: Franchise Buyer Review Before Signing
Use this checklist to identify the FDD issues that deserve deeper review before you sign or pay.
Frequently asked questions
What is the 14-day rule?
Under the FTC Franchise Rule, a franchisor must give you the FDD at least 14 calendar days before you sign a binding agreement or pay any money. The analyzer estimates your earliest signing date from the disclosure date.
What is Item 19 and why does it matter?
Item 19 is the Financial Performance Representation — the only place a franchisor may make earnings claims. If Item 19 is absent, no one (not the franchisor or a broker) should be promising you specific revenue or profit. The analyzer flags whether it is present and scrutinizes its basis.
Are FDDs negotiable?
Franchise agreements are often presented as non-negotiable, so the report is framed as pre-signing questions and clarifications to raise with the franchisor and a franchise attorney — not aggressive redlines.
Is this legal advice?
No. This is general information and document-review prompts. Franchise registration, relationship laws, and non-compete enforceability vary by state — confirm specifics with a qualified franchise attorney.
Franchise registration by state
Some states require a franchise to register or file before it can sell to you. See the state franchise-law guides for registration and relationship rules where you plan to operate.