FDD Item 22: The Contracts You'll Actually Sign
Item 22 is the stack of contracts you will actually sign, attached in full. This is where a lawyer earns their fee. Here's how to read it.
Andy LeRoy
FDD Item 21: Is the Franchisor Itself Healthy?
Item 21 is the franchisor's own audited financials. It tells you whether the company backing you is healthy, or living off new franchise fees. Here's how to read it.
FDD Item 20: How Many Owners Stay (and Leave)
Item 20 is the franchise's report card: how many locations open, close, and change hands, plus a list of owners you can actually call. Here's how to read it.
FDD Item 19: The Only Place You'll See Earnings
Item 19 is the one place a franchise can show you earnings numbers, and it is completely optional. The methodology is the whole story. Here's how to read it.
FDD Item 18: Is a Celebrity Involved?
Item 18 discloses whether a public figure is behind the brand. Often it says 'none.' When it does not, here's what to look for.
FDD Item 17: How This Ends (and What It Costs)
Item 17 is the exit section: renewal, termination, selling, and what it costs to leave early. It may be the most important fine print in the FDD. Here's how to read it.
FDD Item 16: What You're Allowed to Sell
Item 16 sets the limits on what you can sell and whether you can adapt to local demand. Here's how to read it.