Disclosed avg revenue fell 9% from 2025 to 2026. Ask franchisees: what changed in your revenue over this period and what caused it?

Whether the decline is system-wide or location-specific. COVID recovery lag, competition, or franchisor pricing changes.

How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?

Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.

The FDD does not include audited financial statements. Ask: do you have any visibility into the franchisor's financial health? Have you ever been concerned about the company's stability?

Even anecdotal signals — changes in leadership, delays in royalty statement processing, reduced marketing fund activity.

If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?

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?

Whether the new leadership has franchise operations experience. Disruption in field support after leadership transitions is common.

What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?

Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.