Franchisel.com — FDD Diligence Memo
Done and Done Home
Generated 2026-04-06 · 2026 FDD · Government-filed source
Done and Done Home
2026 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
Sys Health
7
Fin Strength
7
Econ Burden
9
Support
5
Contract
6
Red Flags & Key Signals
You waive the right to sue in court. Arbitration typically favors the franchisor. Review the venue and arbitrator selection process.
After leaving the franchise, you cannot operate a competing business in this radius. Evaluate the real-world impact on your exit options.
Franchisor is not obligated to protect your market area. Encroachment from company-owned units or other franchisees is possible.
Avg $1,356,401 from government-filed FDD. Transparent disclosure is a positive signal.
Franchisor financial statements are audited with no going concern warning.
Investment Overview
Items 5, 6, 7Total investment range: $50,000 – $99,245. Initial fee: $49,500. Royalty: 6%. Marketing fund: 2%.
Payback estimate: Investment-to-disclosed-revenue ratio: 0.06x. This is the ratio of midpoint investment ($74,623) to disclosed avg revenue ($1,356,401). No profit assumptions are applied.
Item 19 — Revenue
Item 19 — 2026 FDD (government-filed)Item 19 discloses avg revenue of $1,356,401 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure. Investment-to-disclosed-revenue ratio: 0.06x ($74,623 midpoint investment vs $1,356,401 avg revenue).
Item 20 — System Health
Item 20 — 2026 FDDSystem flat — net 0 units in reporting period.
→ StableUnit count essentially unchanged.
Total Units
10
Net Growth
+0
Turnover
0%
Year-over-Year Trends
2026 FDDOpened
+0
Closed
-0
Net
+0
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2026 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Gross sales
Figure represents gross sales — standard basis for cross-brand comparison.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
Subset of units reported
Item 19 samples may be limited to defined subsets (geographic subset), which affects comparability.
Sample size not specified
The FDD does not state how many units contributed to this figure.
Current data (2025)
Revenue figures are from 2025 — recent and relevant.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
The agreement requires mandatory arbitration. Ask: have you ever had a dispute with the franchisor — how was it handled? Did you feel you had recourse?
Look for: Franchisees who've been through disputes. Understand if the arbitration process felt fair or heavily stacked toward the franchisor.
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.
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.
Territory — Item 12
NO exclusive territory — encroachment risk exists; franchisor reserves online/ecommerce sales; population-based territory (50,000 pop.); territory contingent on performance requirements.
Item 12 · 2026 FDD
Data sources: 2026 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2026 FDD filed with MN CARDS (file #11632). 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.