What this calculates

A Franchise Disclosure Document runs 100 to 400 pages and is written to be complete rather than readable. This tool reads one and returns the parts that change a buying decision: what Item 19 does and does not claim about earnings, the full stack of fees you will pay across the term, the litigation and bankruptcy history in Items 3 and 4, and the outlet turnover buried in Item 20.

What you will need

The FDD itself. The complete document, not the brochure or the franchisor's summary of it. A partial upload produces a partial scorecard and will not flag what is missing.

Nothing else. The analysis is drawn from the document. It does not blend in outside data about the brand, so what you get back is traceable to a page you can go and read.

How to read the result

Start with what is absent. A franchisor is not obliged to make a financial performance representation at all, so an Item 19 that says little is itself the finding — it means no one will stand behind an earnings number in writing. Then check whether the Item 19 figures cover all outlets or a flattering subset, and whether the fee stack still leaves a margin once every recurring charge is stacked on top of the royalty. Read the litigation history for patterns rather than counts: repeated disputes of the same kind matter far more than a single suit.

Questions about this tool

Is a strong Item 19 enough to justify buying?

No. Item 19 describes outlets that already exist, often the established ones, and it is not a projection for the unit you would open in your market with your rent and your labour costs. Treat it as the starting point for questions to existing franchisees, not as a forecast.

What if the FDD has no Item 19?

That is permitted and it is common. It means the franchisor has chosen not to state any financial performance figure it would have to substantiate. You then have to build the economics yourself from franchisee conversations and your own cost quotes.

Does this replace a franchise lawyer?

No. The scorecard tells you where to look and what to ask; it does not give legal advice and it does not review the franchise agreement clause by clause. Have a lawyer read the agreement before you sign.

For reference only; not legal, tax, or investment advice. Results depend entirely on the figures you enter — check them against your own quotes and your franchise agreement before acting on them.

What this tool does

Parse any FDD into a comparable scorecard — Item 19, fees, litigation, red flags.

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