Service · $500 flat · Snapshot instantly, full teardown within 24 hours · Full refund if we can't obtain the FDD
FDD Teardown — Know Before You Sign
An FDD teardown is a $500 written review of one franchise brand's Franchise Disclosure Document, delivered within 24 hours: Item 19 revenue claims deconstructed, Item 20 unit churn, Item 3 litigation flags, and the brand's SBA 7(a) default rate benchmarked against its industry — ending in a proceed, proceed-with-conditions, or walk assessment.
Get the teardown — $500One brand per teardown. If we can't obtain the brand's FDD, full refund.
What does your report look like?
A written report on one brand, in plain language, that starts with the answer. Page one is the verdict and the five numbers that matter; the sections that follow show the work. It is a self-contained page you can print, save as a PDF, or forward to your attorney and lender.
FDD Teardown · Brand name · Prepared for you · Confidential
Our assessment example
Proceed with conditions
A workable brand for a well-capitalized owner — but not on the franchisor's numbers alone.
Sign only if:
- Confirm the Item 19 figure covers units like the one you would open.
- Have your lender price the loan against the brand's own SBA record.
- Get the closure count for your territory in writing.
The five numbers that matter
- SBA default rate vs industry
- Item 19 headline figure
- Plausible take-home
- Units lost in three years
- Total investment
- Page 1The verdict and the five numbers that matter — Proceed, proceed with conditions, or walk — in plain terms, with what would have to be true to sign.
- 01Blind spots — What the headline default rate hides: when failures happen, who fails, and where — each shown as a chart with a one-line finding.
- 02What the government's loan data says — The brand's SBA 7(a) record against its industry, all franchises, and all SBA borrowers, with its nearest peers and lending since 2020.
- 03Item 19: what the revenue claim really says — Who is counted, who is left out, and the walk from gross revenue to a plausible operator take-home.
- 04Item 20: are units opening or closing? — Three years of openings, closures, terminations, and transfers, and what the net number means.
- 05Item 3: litigation flags — What is disclosed and why it matters — or a plain statement that nothing was noted.
- 06Before you sign — Three specific questions for the franchisor, what a good answer looks like, and what to do next.
- 07Sources — Every figure traced to the FDD or the SBA file, with the limits of each stated.
What does the FDD teardown include?
- A verdict — proceed, proceed with conditions, or walk — stated first, in plain terms, with what would have to be true to sign.
- The five numbers that matter — one line each on what the number is and what it means for you.
- Blind spots — what the brand's headline default rate hides: when failures happen, who fails, and where, each shown as a chart with a one-line finding.
- SBA default rate vs industry — the brand's charge-off record on federal 7(a) loans against its industry benchmark, its nearest peers, and recent-activity counts since 2020.
- Item 19 deconstruction — what is reported, who is excluded, and the math from gross revenue to a plausible operator take-home.
- Item 20 unit churn — openings, closures, transfers, and terminations, with the three-year trend.
- Item 3 litigation history — flags worth asking about.
- Three specific questions to put to the franchisor before signing, with what a good answer looks like.
How does it work?
- Pick your brand and pay $500Choose the brand below (or start from its brand page) and pay through Stripe. One brand per teardown; you get a receipt by email.
- See your SBA Record Snapshot instantlyThe confirmation page opens the brand's snapshot: its federal loan default rate against its industry, the blind spots behind that number as charts, and its nearest peers. Yours to keep.
- Full FDD teardown by email within 24 hoursThe verdict, Item 19, Item 20, Item 3 and three questions for the franchisor, as a self-contained report you can print, save as a PDF, or forward to your attorney and lender. Have the FDD PDF? Reply to your receipt with it.
What does it cost compared with the alternatives?
| Option | Cost | What you get | Limits |
|---|---|---|---|
| Franchise attorney | $1,800–$3,000 | Legal review of the franchise agreement | Does not benchmark the brand's SBA loan outcomes or read Item 19 for you |
| Franchise consultant | Free to you | Introductions and coaching | Paid a commission by the franchisor when you sign |
| FDD teardown | $500 | Snapshot instantly; written verdict, five numbers, blind spots, Items 19 / 20 / 3, three questions within 24 hours | Independent; pairs with legal review, doesn't replace it |
The teardown pairs with legal review of the franchise agreement; it doesn't replace it. Most buyers use it to decide whether the brand deserves the attorney's fee at all — and to hand the attorney and lender a report to argue from.
Who is this for?
Buyers in or near the 14-day disclosure window who want the numbers benchmarked before they commit — and a written second opinion they can put in front of a spouse, a partner, an attorney, or a lender. It is not a substitute for attorney review of the franchise agreement.
The Franchise Disclosure Document arrives 14 days before you can sign. Franchise attorneys charge $1,800–$3,000 for a legal review of the agreement and do not benchmark the brand's SBA loan outcomes. Franchise consultants are paid commissions by franchisors.
| Question | Free brand page | Teardown |
|---|---|---|
| SBA default rate vs industry | Yes | Yes, with the blind spots behind it |
| Item 19 revenue claims | — | Deconstructed, gross to take-home |
| Item 20 unit churn | — | Three-year trend |
| Litigation flags | — | Item 3 review |
| Questions for the franchisor | — | Three, specific, with what a good answer looks like |
| Assessment | — | Proceed / conditions / walk |
Frequently asked
- How long does the teardown take?
- The SBA Record Snapshot for your brand appears the moment you pay. The full teardown arrives by email within 24 hours.
- What do I get right away?
- The brand's SBA Record Snapshot: its federal loan default rate against its industry, the blind spots behind that number shown as charts, and its place among its nearest peers. It opens on the confirmation page and is yours to keep.
- What if you can't get the FDD?
- If we can't obtain the brand's FDD, full refund.
- What do I actually receive?
- A written report for one brand: a verdict — proceed, proceed with conditions, or walk — the five numbers that matter, the blind spots the headline numbers hide, the brand's SBA loan record against its industry, Item 19, Item 20 and Item 3 read in plain language, and three questions to put to the franchisor. It is a self-contained page you can print or save as a PDF.
- Do I need to send you the FDD?
- Only if you have it. Send the PDF with your brand name and we start from it; if you don't, we obtain the current FDD ourselves.
- Are you independent?
- Yes. We are not affiliated with any franchisor, broker, or franchise consultant, and we take no commissions. The teardown is paid for by you alone.
- Does this replace a franchise attorney?
- No. It pairs with legal review of the franchise agreement; it doesn't replace it.