FDD Builder AI
This tool unlocks when we launch paid plans
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What this tool does
For franchisors: your disclosure outline, the data to gather, and the earnings-claim call.
Other tools for this stage
- Ops CopilotDescribe what's going wrong in the unit; get causes, this week's actions, and metrics.
- Multi-Unit BenchmarkPut your units side by side — find the drag, and what closing the gap is worth.
- Break-Even CalculatorThe revenue — and customer count — a unit needs each month before it makes a cent.
- Working Capital & RunwayModel the ramp-up: the working capital a unit burns before break-even, and whether your reserve survives it.
- Occupancy Cost RatioCheck rent + occupancy as a share of revenue against healthy benchmarks, and your max sustainable rent.
- Prime Cost CalculatorCOGS plus labour as a share of revenue — the master health metric for a food or retail unit, rated.
What this calculates
Written for franchisors rather than buyers. It maps out the disclosure document you will need to produce: the structure item by item, the data and records you have to gather for each one, and the point most first-time franchisors get stuck on — whether to make a financial performance representation at all, and what substantiating one commits you to.
What you will need
Your current operating history. How many units, how long trading, company-owned versus franchised. Disclosure obligations and what you can credibly claim both depend on the operating record you actually have.
Your intended fee structure. Initial fee, royalty, ad fund and any technology or supply charges. These appear across several items and have to be consistent everywhere they appear.
Where you intend to grant. Registration and filing requirements differ by jurisdiction, and they determine both your timetable and your cost to launch.
How to read the result
Treat the output as a work plan for you and your franchise lawyer, not as a document to file. The earnings-claim decision deserves the most thought: making a representation is a competitive advantage when your numbers are strong, but it commits you to a written basis you must be able to substantiate and keep current. Deciding not to make one is a legitimate choice, and it is better than making one you cannot support.
Questions about this tool
Can I use this instead of a franchise lawyer?
No. A disclosure document is a regulated legal instrument and getting it wrong carries real consequences. This tells you what to prepare and what to decide, so the time you buy from a lawyer is spent on judgement rather than on collecting your own data.
Am I required to publish earnings figures?
No. A financial performance representation is optional, and many franchisors do not make one. What is not optional is that if you do make one, you must be able to substantiate it.
How much operating history do I need before franchising?
There is no universal number, but you need enough of a record to show the model works in the hands of an operator and to document the systems a franchisee will follow. Franchising an unproven model transfers your risk to someone who is paying you for the opposite.
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.