Methodology — How We Compile Franchise Data from the FDDs

Every figure on this site traces back to a primary disclosure document. This page explains where the data comes from, how we handle it, and where its limits are.

Primary sources

Franchise Disclosure Documents (FDDs) filed under the FTC Franchise Rule (16 CFR Part 436). We rely specifically on Item 5 (initial fees), Item 6 (royalty and other ongoing fees), Item 7 (estimated initial investment), Item 19 (financial performance representations), and Item 20 (outlet and turnover data).
State franchise registration portals that publish FDDs, including California (DFPI DOCQNET), Wisconsin (DFI), Minnesota (Commerce CARDS), Maryland, Virginia, and Washington.
Reputable FDD analysts — including FranchiseChatter's "FDD Talk" series, FranchiseDirect, and VettedBiz — which republish and summarize specific FDD line items. Where we rely on a secondary summary of a filing, we say so and note our confidence.

How we handle Item 19 (earnings)

Item 19 is optional. Roughly 40% of franchisors make no financial performance representation at all — they disclose no average sales, costs, or profit. When a brand does not disclose Item 19, we mark it “not disclosed” and never substitute a third-party estimate as if it were an official figure. The absence of Item 19 is itself information, and we treat it that way. When we mention an outside estimate for context, we label it clearly as an outside estimate, not an FDD figure.

Citation and confidence

Each franchise file carries a source note stating which FDD year and sources a figure came from and our confidence in it. Figures are reported as disclosed — an Item 19 average is an average of a franchisor-selected group of outlets, not a promise of what any single unit will earn, and we describe the basis wherever the brand provides one.

Updates and limitations

FDDs are refiled annually and figures change. We revise files as new FDDs are published, but a figure here may lag the most current filing. Nothing on this site is a substitute for reading the complete, current FDD of the brand you are considering and having it reviewed by a qualified franchise attorney and accountant. See our disclaimer.