Guides to the Franchise Disclosure Document
How to read the parts of an FDD that carry the money: the startup budget, the fees, the earnings claims and the closures. Each guide cites the FTC Franchise Rule or the regulator it relies on.
- How to Find a Franchise's FDD for FreeFind a free FDD in Minnesota CARDS and other state databases. Check its date and learn when to request the current copy from the franchisor.
- How to Read a Franchise Disclosure Document (FDD)What each of the 23 Items in an FDD covers, which ones show cost, earnings and closures, and what the document leaves out.
- FDD Item 19: What Franchise Earnings Claims ShowRead FDD Item 19 earnings claims, sample limits, what they show about owner pay, and the two exceptions allowing figures outside the FDD.
- FDD Item 20: How to Check Franchise ClosuresHow to read the five Item 20 tables in an FDD to see how many franchise units opened, closed, were terminated or changed owners.
- SBA Loans for Franchises: Directory, Down Payment, TermsHow SBA 7(a) and 504 loans work for a franchise: the SBA Franchise Directory, the 10% equity rule, loan terms and guarantees.
- Franchise Royalty Fees: How to Read Item 6Find the royalty rate, sales definition, payment schedule and separate advertising charges in a franchise disclosure document.
Start with the source document
The guides explain how to locate a filing, read its fee and investment tables, interpret financial performance disclosures and understand outlet movements. Each links the relevant primary sources and identifies calculation limits.