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.
Andy LeRoy
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.
FDD Item 15: Do You Have to Run It Yourself?
Item 15 tells you whether this is a job you show up for or an investment you oversee. The answer changes everything. Here's how to read it.
FDD Item 14: The Secret Sauce, If There Is One
Item 14 covers the patents, copyrights, and trade secrets behind the system, if there are any. It is a quiet test of what your royalty buys.
FDD Item 13: The Brand Name You're Licensing
Item 13 covers the brand name and logo you are paying to use, and whether the franchisor's rights to them are solid. Here's how to read it.