What is an FDD and why does analysis matter?
A Franchise Disclosure Document (FDD) is a legal document franchisors must provide to prospective franchisees at least 14 days before any agreement is signed. At 300-800 pages, it contains 23 mandatory items. Proper analysis is critical before committing $100K-$500K+.
How accurate is the AI analysis?
Our AI is trained on thousands of FDDs and validated against attorney-reviewed analyses. It extracts all 23 FDD items with high accuracy. We recommend using FranchiseIQ alongside qualified legal counsel.
How long does an analysis take?
Most FDDs are fully analyzed in 3-8 minutes, compared to 20-40 hours of manual attorney review at $2,000-$5,000.
Is my data secure?
Yes. All documents are encrypted in transit and at rest. We do not share your documents or analysis results with third parties.
How much does a franchise attorney charge?
A franchise attorney typically charges $2,000-$5,000 at hourly rates of $300-$500. FranchiseIQ automates extraction and red flag detection, reducing attorney hours needed.
What are the most important FDD items?
Item 3 (Litigation), Item 5 (Initial Fees), Item 6 (Other Fees), Item 7 (Initial Investment), Item 17 (Renewal/Termination), Item 19 (Financial Performance), Item 20 (Outlets), and Item 21 (Financial Statements).
What is the typical franchise royalty rate?
Franchise royalties typically range from 4-8% of gross revenue, plus marketing fees of 1-3% and technology fees of $100-$500/month.