Frequently Asked Questions
Find answers to common questions about FranDB and franchise research.
About FranDB
What is FranDB?
FranDB is a franchise research platform that aggregates and analyzes data from Franchise Disclosure Documents (FDDs). We make it easy to research franchise costs, fees, financial performance, and growth trends across thousands of franchise brands.
Is FranDB affiliated with any franchisors?
No. FranDB is an independent research platform. We are not affiliated with, endorsed by, or partnered with any franchisor. Our goal is to provide objective, unbiased information to help you make informed decisions.
Is FranDB free to use?
Yes, you can browse franchise profiles and basic data for free. Some advanced features may require creating an account.
Understanding FDD Data
What is an FDD?
A Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees. It contains 23 items covering the franchisor's history, fees, obligations, financial statements, and other critical information.
Where does your data come from?
We source FDDs from public state filings, primarily from California's Department of Financial Protection and Innovation (DFPI). Franchisors are legally required to register and file updated FDDs annually in registration states.
What is Item 19?
Item 19 is the section of the FDD where franchisors may (but are not required to) disclose financial performance data. This can include average revenue, gross profit, or other financial metrics from existing franchise locations.
Why do some franchises show 'No Item 19'?
Franchisors are not required to include financial performance data in their FDD. Many choose not to disclose this information, especially newer or smaller franchise systems.
How current is your data?
We continuously update our database as new FDDs are filed. Each franchise profile shows the FDD year so you can see how recent the data is. You can also switch between different FDD years when available.
Investment & Costs
What does 'Initial Investment' include?
The Initial Investment range (Item 7 of the FDD) includes all costs to open a franchise: franchise fee, real estate, equipment, inventory, training, insurance, and working capital. The range shows low to high estimates based on various factors.
What is a franchise fee?
The franchise fee is the upfront payment to the franchisor for the right to operate under their brand. This is typically a one-time fee paid when you sign the franchise agreement.
What are royalty fees?
Royalty fees are ongoing payments (usually a percentage of gross sales) paid to the franchisor for continued use of their brand, systems, and support. Most franchises charge 4-8% of gross sales.
What is a brand/advertising fund?
Many franchisors require contributions to a national or regional advertising fund. This is typically 1-3% of gross sales and is used for brand-wide marketing efforts.
Using the Platform
How do I compare franchises?
Browse franchise profiles to see key metrics side-by-side. You can filter by industry, investment level, and other criteria to find franchises that match your requirements.
What is the AI chat assistant?
Our AI assistant can answer specific questions about franchises in our database. Ask about fees, territory requirements, training programs, or any other details from the FDD.
What does 'SBA Loans' mean on a franchise profile?
We track SBA 7(a) loans issued to franchisees. A high number of SBA loans indicates that lenders are confident in the franchise system and that financing is available for qualified buyers.
Making Decisions
Should I rely solely on FranDB for my franchise decision?
No. FranDB is a research starting point, not a replacement for proper due diligence. Always request the complete FDD directly from the franchisor, speak with existing franchisees, consult a franchise attorney, and work with a financial advisor.
Is this financial or legal advice?
No. FranDB provides information for educational and research purposes only. We are not financial advisors, attorneys, or franchise consultants. Always consult qualified professionals before making investment decisions.