FDD Review & Franchise Due Diligence

reviewing Franchise Disclosure Document for due diligence

Independent. Objective. Executive-Level Analysis Before You Invest.

Most franchise buyers rely on brokers, franchise sales teams, or overly optimistic presentations.


You deserve something better — a clear, data-driven understanding of the franchise you’re evaluating before committing capital, time, or your reputation.

At Franchise Clarity, we provide independent Franchise Disclosure Document (FDD) review and executive-grade due diligence so you can make a confident, well-informed investment decision.

Why an Independent FDD Review Matters

The FDD is meant to inform, but it often:

  • Leaves out unit-level realities

  • Presents averages that mask variability

  • Downplays long-term financial risks

  • Overstates earnings potential

  • Omits information about system-wide performance

A surface-level read is not enough.
You need a deeper, CFO-level assessment of what the numbers actually mean.

analyzing a franchise disclosure document

What We Analyze

1. Item 19 & Financial Performance Representations

  • Validate earnings claims through a deeper analytical lens

  • Back-test Item 19 using Item 21 (actual financials)

  • Develop high/mid/low scenarios for earnings and margins

  • Identify inconsistencies, optimistic assumptions, or red flags

2. Total Investment & Cash Requirements

  • Realistic cash needs during ramp-up

  • Breakeven timelines and cash burn

  • Hidden costs not always visible in the FDD

  • Sensitivity to rent, labor, working capital, and local economics

3. Fee Structure & Long-Term Economics

  • Impact of royalties, ad fees, and required vendors

  • True ongoing economics at different sales levels

  • Long-term viability and risk-adjusted outcomes

4. Franchise System Quality

  • Closure rates, turnover patterns, and resale dynamics

  • Litigation history and operational weaknesses

  • Quality of leadership, support, training, and maturity of the system

5. Operational Reality & Owner Workload

  • The actual day-to-day of running the business

  • Semi-absentee viability (and when it is not viable)

  • Fit with your professional background and lifestyle

Who This Is For

This service is designed for executives and professionals who want:

  • Clear, unbiased due diligence

  • A financial perspective rooted in real business experience

  • Someone who can translate FDD disclosures into actionable insight

  • Guidance that cuts through sales language and optimism bias

Whether you're exploring a single brand or comparing several, you’ll gain clarity grounded in data — not emotion or persuasion.

Why Franchise Clarity

We are not brokers and receive no commissions from franchisors.
Our role is simple: objective guidance that protects your time and capital.

You benefit from:

  • 27 years of Fortune 100 finance leadership

  • Experience analyzing multi-billion-dollar businesses

  • A rigorous, structured due diligence framework

  • First-hand understanding of franchising risks and realities

You get the kind of financial rigor most buyers never receive.

What You Receive

Every engagement includes:

✔ A full FDD deep-dive
✔ Item 19 analysis and financial interpretation
✔ A model of earnings potential under multiple scenarios
✔ A summary of risks, questions, and system dynamics
✔ A 1:1 session to review findings and next steps

You’re not just getting information — you’re getting clarity, confidence, and a process designed to help you make a smart, defensible decision.

franchise disclosure document due diligence

Schedule a Consultation

If you're evaluating a franchise and want an objective perspective before making a commitment:

👉 Schedule a consultation

Or reach out directly:
billbeckham@franchiseclarity.net