My plan

Franchise Investment Comparison

Compare up to three franchises side by side using the figures in each brand's Franchise Disclosure Document (FDD): initial investment, royalties and ad fees.

Copy the totals from each brand's FDD: Item 7 (estimated initial investment) and Item 6 (royalty, ad fund and other fees). Free FDDs: Wisconsin DFI · NASAA depository.

See all my numbers

How it's calculated

  • Initial investment = the Item 7 low and high totals you enter (they typically include the franchise fee).
  • Ongoing fees = royalty % and ad fund % of the revenue you expect, plus fixed annual fees. Some franchisors charge flat royalties instead — enter those as "other fees".
  • 10-year cost (high) = Item 7 high + 10 years of fees at your revenue estimate. It ignores growth, renewal and transfer fees.
  • Franchisors may only discuss earnings through Item 19 of the FDD. Use your own revenue estimate, not a sales pitch.

Sources

Estimates only. Results depend on the numbers you enter and are not financial, tax or legal advice.