Before You Buy a Franchise Guide
Close the information gap between what a franchisor discloses and what a new unit actually earns before you sign anything or pay a dollar. This 24-page guide walks through the FTC Franchise Rule and your required waiting periods under 16 CFR Part 436, why Item 19 financial performance disclosure is optional and often silent on first-year revenue, and how to rebuild real unit economics and verify claims with current and former franchisees — plus six working templates to organize the decision.
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What It Covers
Read the complete FDD and mark questions before any binding agreement or payment, and confirm every required waiting period the Franchise Rule gives you. Rebuild first-year cash needs, operating costs, royalties, debt service, and working capital yourself, since a franchisor is not required to disclose average first-year revenue. Call comparable current and former franchisees from Item 20 and verify every material claim in their own words, not the franchisor's marketing. Use the checklist, due-diligence budget, investment comparison, decision record, and contact tracker, plus the compliance page, for each franchise considered.
Six Working Templates
- Checklist
- Due-diligence budget
- Investment comparison
- Decision record
- Contact tracker
- Compliance page
This guide gives you the framework. A full plan for this trade isn’t written yet. To find out whether it can work in your own town, Make It Your Town ($49) gives you a market-check file right away, then I research your trade and zip code and email you what I find. 7-day refund, unless I’ve already emailed your research. Refund policy.