FDD Items

FDD Item 9: Everything You're Signing Up to Do

Item 9 is a map of your obligations as an owner, often including a personal guarantee. Here's how to read it before you sign.

FDD Item 8: What You Have to Buy, and From Whom

Item 8 controls where you buy your supplies and equipment. It can save you money or quietly cost you. Here's how to read it.

FDD Item 7: What It Really Costs to Open

Item 7 is the big number: an estimated range of everything it costs to open. Treat it as a starting point, not a promise. Here's how to read it.

FDD Item 6: The Ongoing Fees You Keep Paying

Item 6 lists the fees you keep paying after you open, like royalties and the ad fund. Many are based on sales, not profit. Here's how to read it.

FDD Item 5: The Fees You Pay Up Front

Item 5 covers the fees you pay before you ever open the doors, and they are usually non-refundable. Here's how to read it.

FDD Item 4: Has Anyone Here Gone Bankrupt?

Item 4 discloses bankruptcies involving the franchisor and its key people. One old filing is not a verdict, but a pattern matters. Here's how to read it.

FDD Item 3: What the Lawsuits Tell You

Item 3 is where the franchisor has to disclose its lawsuits. The number matters less than the pattern. Here's how to read it.