Franchise Health Score

A franchise health score is a quantitative rating that evaluates the overall strength and stability of a franchise system by analyzing multiple data points from FDD filings, SBA loan records, and growth trends. FDDIQ's health score uses a 7-metric, 100-point framework that weights unit growth trends (20 points), SBA default rates (25 points), fee burden relative to revenue (10 points), Item 19 disclosure quality (10 points), royalty trends (10 points), revenue-to-investment ratio (10 points), and forward momentum (15 points). Health scores help prospective franchisees quickly compare brands and identify systemic risks that may not be apparent from reading a single FDD. Scores are expressed as letter grades (A+ through F) alongside the numerical score for accessibility.