Average franchise investment: $150,000. FDD review attorneys charge $3,000–$8,000.

Know exactly what you're buying before you write the check.

Franchise attorneys charge $3,000–$8,000 to review an FDD. Franchise Scout does it in minutes: Item-by-Item breakdown, failure rate analysis, financial reality check, litigation history, and 25 questions your franchisor hopes you won't ask.

Analyze this FDD — $499

Same analysis franchise attorneys charge $5,000 for — in minutes.

42%
Avg outlet closure rate in high-risk FDDs
23
FDD Items analyzed, including the ones franchisors hide
$4,500
Avg savings vs. franchise attorney FDD review

What the FDD is hiding

📋

Item-by-Item Breakdown

All 23 FDD items analyzed: background, fees, territory, training, restrictions, financials. Every section decoded in plain language with risk ratings.

📉

Failure Rate Reality Check

Item 20 reveals real outlet opening and closing ratios. We calculate how many franchisees actually survived — not the cherry-picked success stories in the sales pitch.

💰

Item 19 Earnings Decoder

Franchisors are not required to disclose earnings. When they do, they often use top-quartile figures. We extract median earnings — or flag loudly when Item 19 is absent.

⚖️

Litigation History Summary

Item 3 patterns: pending lawsuits, terminated franchisees who sued, regulatory actions. A single pattern of territory-encroachment suits is a system-wide red flag.

🗺️

Territory Risk Analysis

Item 12 encroachment rights: does your territory have teeth? We flag when franchisors reserve the right to open competing locations, kiosks, or online channels inside your zone.

25 Questions Generator

25 hard-hitting questions personalized to this FDD's specific weaknesses — the ones your attorney would bill $500/hour to develop and your franchisor hopes you never ask.

✓ Verified

Found a 42% outlet closure rate in Item 20. Passed on the franchise. Saved $200K.

M
Michael P.
Prospective Franchisee
✓ Verified

Item 19 showed median $47K/year. Sales pitch said $120K. Glad I checked before signing.

S
Sandra T.
Restaurant Prospect
✓ Verified

Three pending lawsuits for not honoring territory exclusivity. Red flag I would have missed.

J
James R.
Multi-Unit Investor

One analysis. One decision. Save $4,500+ vs. a franchise attorney.

Starter

$69/mo

Core FDD breakdown with Item 19/20 analysis — essential for first-pass due diligence.

  • All 23 FDD Items analyzed
  • Outlet success/failure rate (Item 20)
  • Earnings reality check (Item 19)

30-day money-back guarantee

Frequently asked

Is this legal advice?

No. This is research and analysis to help you understand an FDD before signing. Franchise Scout surfaces the same information a franchise attorney reviews — but you should still consult an attorney before signing any franchise agreement. At $499 vs. $5,000, use us first to know what questions to ask.

What if the franchisor did not provide Item 19?

That is a major red flag and we will say so prominently. Franchisors are not required to disclose earnings — but choosing not to almost always means the numbers are not good. We flag Item 19 absence at the top of your report.

How much of the FDD should I paste?

Focus on Items 3, 7, 12, 19, and 20 for the highest impact. Paste as much as you have — the analyzer handles up to 60,000 characters. If your FDD is a scanned PDF, copy the text layer or retype key sections.

What is a healthy franchise health score?

80–100: Proceed — strong fundamentals, good transparency, manageable fees. 60–79: Proceed with caution — some red flags worth negotiating. 40–59: Major red flags — get an attorney involved before going further. Below 40: Pass — the math does not work or the disclosure history is too concerning.

Is Franchise Scout worth $199/mo?

Franchise attorneys charge $3,000–$8,000 to review an FDD. At $199/mo you can analyze multiple FDDs per month, track litigation patterns, and enter discovery calls armed with 25 customized questions — a fraction of the legal alternative.

What if I don't get results?

If the analysis does not surface at least 5 meaningful data points from Items 3, 7, 12, 19, or 20 of your FDD, email us within 7 days for a full refund. Every analysis we have run has surfaced actionable intelligence.