Guide

How to Compare Franchise Opportunities Using an FDD

By the Franopolis Research Desk · Published October 23, 2026

A Franchise Disclosure Document (FDD) tells you what a franchise costs to open, what you will keep paying, what you agree to, and some history about the system. This guide shows where those answers sit, how to compare them fairly across brands, and what they cannot tell you.

What an FDD is, and what it isn't

Under the FTC Franchise Rule, a franchisor generally must give you its FDD at least 14 calendar days before you sign a binding agreement with, or pay any money to, the franchisor or its affiliate. The FTC's consumer guide to buying a franchise explains the process. The document has 23 numbered sections called Items. Together they cover costs, fees, obligations, litigation history, outlet counts, financial statements and, if the franchisor chooses to include them, financial performance figures.

An FDD is a starting point for your research. It does not tell you whether a franchise suits your finances, skills or local market. The FTC does not review or approve the contents.

Franopolis is a free way to explore figures taken from these documents. Every figure on a brand report shows its FDD year and page. Our reports are summaries, not the FDD. Always read the complete document the franchisor gives you, including the contracts and financial statements we don't reproduce.

Quick reference: where to look

Other Items matter too, including litigation (Item 3), bankruptcy (Item 4), your obligations (Item 9), financing (Item 10), renewal and termination (Item 17) and the franchisor's financial statements (Item 21). This guide doesn't cover the whole FDD.

Compare the same operating format

Many franchisors offer more than one way to open: a new unit, a conversion of an existing business, a kiosk, a mobile unit, or a package of several territories. Each one can come with its own Item 7 table. Comparing one brand's conversion estimate with another brand's new-unit estimate doesn't provide a like-for-like comparison of opening costs.

Opening costs: Items 5 and 7

Item 5 discloses the initial franchise fee. That fee is only one part of the cost to open. Item 7 lists the estimated initial investment line by line (fee, buildout, equipment, inventory, deposits, insurance, an "additional funds" reserve) and gives a low and high total.

• Check before adding. Item 7 usually lists the initial fee as a line, so it is often already in the total. Read the table rather than adding Item 5 on top.
• Estimates, not prices. Item 7 ranges are the franchisor's estimates. They are not what any owner actually spent, and they are not a guaranteed funding requirement.
• Additional-funds periods vary. Each FDD defines its own initial period, commonly a few months. The additional-funds allowance covers the period specified in the table; you may need more working capital afterward.
• Different concepts. Total investment, liquid capital (cash on hand) and net worth requirements answer different questions. Don't swap one for another.

For example, the 2026 Anytime Fitness FDD lists a standard initial franchise fee of $42,500 (Item 5, PDF p. 15). It gives an Item 7 total of $539,329 to $905,482 for a center (PDF p. 26), and that table includes a franchise fee line.

The Investment Planner helps you lay out your own budget next to the disclosed ranges.

Ongoing obligations: Item 6

Item 6 lists fees you keep paying: royalties, advertising or brand-fund contributions, technology fees, training fees and conditional charges such as transfer or audit fees. Note the basis (a percentage of sales or a fixed amount), how often it's paid, any minimum, and when it applies.

Real structures vary. The 2025 Bloomin' Blinds FDD discloses a royalty of "the greater of 6% of Total Sales or $600 per month (whichever is greater) for each territory," subject to an annual Shortfall Royalty Payment tied to a Minimum Performance Standard. The same row states that the $600 minimum is waived during the first 12 months of operation if the franchisee is in compliance, and that Conversion Franchises follow a different royalty schedule (Item 6, PDF p. 14). The 2026 Anytime Fitness FDD discloses a fixed monthly fee, "Currently $842 per month per center," subject to an annual CPI increase. The franchisor also reserves the right to replace it with a percentage royalty of up to 8% of Gross Revenue (Item 6, PDF p. 18).

Performance figures in context: Item 19

Franchisors may choose not to provide financial performance representations. Item 19 tells you whether those representations are provided. (See the FTC consumer guide.) That is different from Franopolis not yet having reviewed figures for a brand, and our reports keep the two cases separate.

• Revenue isn't profit. Gross sales come before rent, payroll, royalties and every other expense.
• EBITDA isn't take-home pay. It comes before interest, taxes, depreciation and amortization. It may also come before paying a manager or the owner.
• Average and median differ. An average can be pulled up by a few strong locations. The median is the middle reported value when results are ordered; with an even number of observations, it is the average of the two middle values.
• Read who is counted. Check the number of locations, the period, franchised or company-owned, and which locations were left out.

System changes: Item 20

Item 20 shows how many outlets the system had at the start and end of each of the last three years. Separate tables show transfers, openings, terminations, non-renewals, reacquisitions and other closures. A net change alone hides those movements.

Item 20 also lists current franchisees and those who left in the last fiscal year, with contact information. Talking to both is one of the best ways to understand what's behind the numbers. Outlet growth doesn't prove profitability, and decline doesn't prove failure.

Territory language: Item 12

Item 12 describes whether you receive any territorial protection and its conditions, such as minimum sales or development schedules. It also covers the channels the franchisor keeps for itself, like online sales or non-traditional sites. An existing location nearby, or the protection described in the FDD, doesn't tell you whether a specific territory is available today.

The Territory Disclosures tool shows how brands word their Item 12 language.

Comparison checklist

Use this list for each brand you compare:

• FDD year and the reporting period behind each figure
• Operating format you are actually considering
• Item 7 total for that format, and what it includes (fee, reserve period)
• Initial fee (Item 5) and every ongoing fee, with its basis and minimum (Item 6)
• Item 19: the measure, the locations counted, exclusions, or a statement that none is made
• Item 20: openings, closures, transfers and terminations, not just net change
• Territory questions for the franchisor (Item 12)
• Questions for current and former franchisees
• The franchise agreement and financial statements, reviewed with a franchise attorney and an accountant

To put brands side by side, use Compare or browse franchise opportunities. Our methodology explains how figures are read and checked. Figures on Franopolis are checked against the cited FDD page using automated checks; not every figure has been reviewed by a person.

Sources

• Federal Trade Commission, Franchise Rule, 16 C.F.R. Part 436 (disclosure Items and the 14-day timing requirement).
• Federal Trade Commission, "A Consumer's Guide to Buying a Franchise".
• Bloomin' Blinds 2025 FDD: Item 5 (PDF p. 12), Item 6 (PDF p. 14), Item 7 (PDF pp. 22, 23, 25).
• Anytime Fitness 2026 FDD: Item 5 (PDF p. 15), Item 6 (PDF p. 18), Item 7 (PDF p. 26), Item 19 (PDF pp. 62, 64–66).

Research information only, not investment, legal or financial advice.

Media contact: research@franopolis.com