Franchisel.com — FDD Diligence Memo
AUGMENT
Generated 2026-04-06 · 2024 FDD · Government-filed source
AUGMENT
2024 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Fin Strength
7
Econ Burden
6
Support
5
Contract
7
Red Flags & Key Signals
Item 19 revenue data has not yet been normalized from covered-source filings. Economics score is unavailable.
Item 2 shows multiple executives hired within 2 years of this FDD filing. Leadership instability can affect franchisee support quality during transitions.
Only one senior executive role identified in Item 2. If a key person departs, franchisee support and leadership continuity may be at risk.
Franchisor financial statements are audited with no going concern warning.
Investment Overview
Items 5, 6, 7Total investment range: $100,000 – $957,000. Initial fee: $45,000. Royalty: 6%. Marketing fund: 2%.
Item 19 — Revenue
Item 19 — filed, figures not available in databaseEconomics not rated — Item 19 not available.
Not DisclosedThis franchisor filed an Item 19, but the figures are not currently available in our database. This reflects a data coverage gap — not a judgment on the quality of the disclosure.
Item 20 — System Health
Item 20 — 2024 FDDSystem flat — net 0 units in reporting period.
→ StableUnit count essentially unchanged.
Total Units
37
Net Growth
+0
Turnover
0%
Year-over-Year Trends
2024 FDDOpened
+0
Closed
-0
Net
+0
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2024 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Item 19 Filed — Figures Not Available
This franchisor filed an Item 19, but the figures are not currently in our database. This flag reflects a data coverage gap, not a judgment on the disclosure.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
Item 2 shows recent leadership changes. Ask current franchisees: has the change in leadership affected support quality, speed of decisions, or the culture of the system?
Look for: Whether the new leadership has franchise operations experience. Disruption in field support after leadership transitions is common.
The Item 2 business experience section doesn't show prior franchise system experience in leadership. Ask: how does the corporate team support franchisees who are struggling operationally?
Look for: Whether they have franchise-specific field support, franchise advisory councils, or prior experience navigating the franchisor-franchisee relationship.
Item 2 lists very few senior executives. Ask: what happens to franchisee support if a key person leaves? Is there a succession plan?
Look for: Key-person risk is highest at early-stage or family-run franchisors. Look for documented processes vs. personality-driven operations.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Management Team — Item 2 (Business Experience)
Long-tenured executives (5+ years); recent leadership changes detected; thin executive bench (≤1 senior role identified).
Item 2 · 2024 FDD · confidence: medium
Territory — Item 12
Franchisor reserves online/ecommerce sales.
Item 12 · 2024 FDD
Supplier Dependence — Item 8
Critical Supplier Dependence · 8/10Mandatory purchases required from approved sources; mandatory categories: technology, uniforms, equipment….
Item 8 · 2024 FDD
Data sources: 2024 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2024 FDD filed with MN CARDS (file #11314). Data verified from government filing.. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.