FDDIQ Editorial Team

The FDDIQ Editorial Team produces franchise investment analysis by combining structured Franchise Disclosure Document (FDD) data with real-world SBA 7(a) loan performance outcomes. Our methodology prioritizes verifiable data over marketing claims — every franchise assessment is grounded in disclosed fee structures, Item 19 financial performance representations, unit growth trajectories, and actual loan default rates from the Small Business Administration.

Data Sources & Methodology

• FDD Filings: Franchise Disclosure Documents collected from state registration registries (Wisconsin, California, and other NASAA-participating states), covering 11,000+ filings across 6,700+ franchise brands.
• SBA 7(a) Loan Data: 180,000+ franchise-backed SBA loan records including default rates, charge-offs, and paid-in-full outcomes — the largest public dataset of franchisee loan performance.
• Item 19 Analysis: Financial Performance Representations extracted from each FDD, including median revenue, implied EBITDA, cash-on-cash returns, and payback periods where disclosed.
• Multi-Year Tracking: Longitudinal analysis of fee changes, unit growth/decline, and disclosure transparency across multiple FDD editions for the same brand.

Editorial Standards

• Every franchise analysis cites the specific FDD year and state filing source.
• Revenue and profit figures are labeled as Item 19 disclosures, not estimates or projections.
• SBA default rates are calculated from actual loan outcomes, not franchisor-reported success metrics.
• Missing or undisclosed data is explicitly flagged rather than imputed or estimated.
• Franchise fee and royalty rates are verified against the most recent FDD on file.