January 6, 2026 · Ron Taylor
We read 140 franchise disclosure documents. Here is what we learned.
Most buyers skim the FDD. We read every page of 140 of them so you know which 30 pages actually matter.
Most people buying a franchise read the brochure, watch the video, and skim the FDD the night before they sign. I understand why. It runs 300 to 500 pages and reads like a lease agreement written by a committee.
We read 140 of them, cover to cover. Not because we enjoy it. Because it is the only document in the whole process the franchisor is legally required to get right.
The pages that matter
Item 7 tells you what it really costs to open. Look at the high end of the range, not the low end. The low end is what it costs if nothing goes wrong, and something always goes wrong.
Item 19 is where the earnings numbers live, if the brand chooses to share them. About a third do not. That is not automatically a red flag, but it is a question you should ask out loud.
Item 3 is litigation. Item 20 shows how many units opened, closed, and changed hands. A brand with a lot of transfers and closures is telling you something without saying it.
What we do with it
We use those pages to cut the list. A brand that looks great on a website and falls apart in Items 19 and 20 never reaches your shortlist. That is the job.