FDD Review + Item 19 Analysis

Understand the numbers behind the franchise before you invest.

The Franchise Disclosure Document is supposed to protect you.
In reality, it’s dense, confusing, and written by the franchisor’s attorney.

I help you interpret the FDD and Item 19 with clarity, rigor, and objectivity — so you can make a confident decision.

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WHAT’S INCLUDED IN THE FDD REVIEW

There’s a Big Gap Between What’s “Disclosed” and What’s “Clear.”

The FDD is more than legal boilerplate — it’s where the franchisor reveals:

  • litigation history

  • financial performance (Item 19)

  • fees and costs

  • required purchases

  • liquidity requirements

  • franchisor stability

  • franchisee turnover

  • territory structure

  • supply chain restrictions

  • advertising fund use

  • real failure risk

  • financial relationships (Item 8)

But most buyers:

  • don’t know what to look for

  • can’t tell what’s missing

  • only focus on Item 19

  • assume disclosure equals transparency

  • misinterpret averages as guarantees

  • don’t understand how the entire document fits together

This creates blind spots and costly assumptions.

I help you see what the franchisor hopes you won’t notice.

WHAT’S INCLUDED IN THE FDD REVIEW

Objective, data-driven analysis of the entire document — not just Item 19.

Your FDD Review includes:

✔ Item 19 Financial Performance Review

  • What the numbers actually show

  • What’s omitted

  • Variability hidden behind averages

  • Comparison to industry norms

  • Adjustments needed to build a realistic model

  • Analysis of margins, revenue ranges, and unit labor requirements

✔ Item 19 vs. Item 21 Reconciliation

  • Are unit economics consistent with corporate financial health?

  • Do royalties reflect real franchisee performance?

  • Are corporate losses disguised by systemwide growth?

✔ Item 7 Cost Structure Review

  • Start-up costs

  • Working capital needs

  • Costs franchisors systematically underestimate

  • Requirements that affect your runway

✔ Item 8 Supplier and Vendor Restrictions

  • Rebates

  • Markups

  • Supply-chain dependency

  • Hidden incentives for franchisor revenue

✔ Item 11 Franchisor Support Reality Check

  • What support the franchisor actually must provide

  • What’s optional

  • Where franchisees often feel misled

✔ Item 17 Exit Terms

  • Territory restrictions

  • Renewal terms

  • Transfer conditions

  • Termination triggers

  • Litigation exposure

✔ Litigation, bankruptcy, and franchisee turnover

  • Does the system have systemic problems?

  • What is not being said?

✔ A clear summary of risks and red flags

Not legalese — real-world implications for your investment.

WHO THIS IS FOR

Perfect for you if:

  • You’re evaluating a specific franchise opportunity

  • You have an FDD and want help understanding it

  • You’re comparing 2–3 franchise brands

  • A broker or franchisor is pressuring you to move quickly

  • You’re preparing for Discovery Day

  • You’re uncertain about the economics or risk

  • You want a second opinion before signing

Whether you’re early in the process or close to a decision, objective analysis protects your time, money, and confidence.

WHY WORK WITH ME

Independent, commission-free, and grounded in real financial discipline.

I spent nearly 30 years in P&G finance, where decisions required:

  • rigorous modeling

  • scenario planning

  • risk evaluation

  • due diligence

  • clear recommendations

Later, as a franchise owner, I experienced the mismatch between the sales story and operational reality.

I built Franchise Clarity so buyers wouldn’t enter the franchise world blindfolded.

No commissions. No affiliations. No franchisor influence.
I work solely for you — the buyer.

HOW THIS WORKS

Step 1 — Upload Your FDD (Securely)

I’ll review the full document and ask clarifying questions.

Step 3 — Review Together in a Live Session

We walk through the economics, the risks, what’s missing, and your best path forward.

Step 2 — Receive a Comprehensive Findings Report

Including risk assessment, financial insights, and recommended areas for further validation.

Step 4 — Decide with Confidence

Proceed, slow down, or walk away — based on data, not emotion or pressure.

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Before You Sign a Franchise Agreement, Understand the FDD.

The FDD contains the information you need — but not in a way that makes it easy to interpret.

I help you translate it into clarity, confidence, and a decision grounded in real due diligence.

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