Research guides
Educational, not promotional. These guides explain how franchise disclosure works and how to read the numbers you will find on this site and in any FDD.
Fundamentals
How to Read a Franchise Disclosure Document (FDD)
What an FDD is, who must give you one, what each of the 23 Items covers, the 14-day rule, and where to read FDDs free on state registries.
Owner-Operator vs. Semi-Absentee FranchisesHow Item 15 sets the owner-involvement requirement, what supervision clauses do, the wage economics of each model, and how to verify the reality.
Economics
What Item 19 Actually Tells You
Item 19 financial performance representations: why they are optional, how populations and exclusions work, mean vs. median, and why sales are not profit.
AUV vs. EBITDA vs. Owner IncomeA stylized franchise P&L from revenue down to owner cash flow, defining each layer and showing why average unit volume headlines mislead buyers.
How Franchise Royalties and Fees WorkRoyalty bases, ad funds, technology and event fees explained, with disclosed examples from the Jiffy Lube, Kumon, Christian Brothers and Subway 2026 FDDs.
How to Estimate Manager-Run Franchise EconomicsWhat semi-absentee really means, what Item 15 permits, and how to work from four-wall EBITDA down to the cash an absent owner actually keeps.
Understanding Franchise SBA FinancingHow SBA 7(a) loans work for franchise buyers: equity injection, collateral, guaranty, debt-service coverage, and why franchise pre-approval ended.
Due diligence
How to Read Item 20 (Outlets and Franchisee Information)
Item 20's five tables explained: terminations, non-renewals, reacquisitions, transfers, attrition math, and why the franchisee contact lists matter most.
Franchise Resales vs. New LocationsBuying an existing franchise unit or opening a new one: transfer approval and fees, real P&Ls, ramp risk, valuation basics, and how diligence differs.
How to Compare Franchise OpportunitiesA framework for comparing brands on investment, fees, disclosed performance, growth and risk — plus the traps that ruin most franchise comparisons.