Franchisel.com — FDD Diligence Memo
Figaro's and Nick-N-Willy's
Generated 2026-04-06 · 2025 FDD · Government-filed source
Figaro's and Nick-N-Willy's
2025 FDD Diligence Memo
Composite score based on six FDD-derived dimensions.
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.
Avg $1,048,058 from government-filed FDD. Transparent disclosure is a positive signal.
Investment Overview
Items 5, 6, 7Total investment range: Not disclosed. Initial fee: $0. Royalty: —. Marketing fund: —.
Item 19 — Revenue
Item 19 — 2025 FDD (government-filed)Item 19 discloses avg revenue of $1,048,058 (Annual).
Sample: WeakThe FDD does not specify how many units were included in this figure. Average ($1,048,058) and median ($1,048,058) are close — the distribution appears relatively even.
Item 20 — System Health
Item 20 — 2025 FDDSystem flat — net 0 units in reporting period.
→ StableUnit count essentially unchanged.
Total Units
0
Net Growth
+0
Turnover
0%
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.
Average and median close
Average ($1,048,058) and median ($1,048,058) are within 15% — reasonably even distribution.
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.
The agreement includes a 2-year, 10-mile post-termination non-compete. Ask franchisees: did you fully understand this when you signed — and do you feel it's fair?
Look for: Whether franchisees feel trapped. High non-compete terms reduce exit flexibility.
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.
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?
Look for: 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?
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.
⚑ Broker Conflict-of-Interest Alert
This FDD discloses that franchises may be sold through franchise brokers or Franchise Sales Organizations (FSOs). The franchisor pays referral fees to brokers who bring buyers — this is a conflict of interest. The broker is financially incentivized to recommend this brand regardless of your specific situation.
FDD language: “s. D. Franchisee Referral Fee An existing franchisee who refers a new franchisee to us re”
Action: Ask any consultant/broker directly whether they receive a commission from this franchisor. Always verify this independently against the FDD Items 5-6.
Data sources: 2025 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Extracted from 2025 FDD filed with WI DFI (file #638031). Source: 638031-2025-Figaros-and-Nick-N-Willys.pdf. · 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.