Step 2 in Your Due Diligence Path

Know exactly what's in your FDD before you sign.

Our AI analyzes all 23 items of your Franchise Disclosure Document against 50+ risk patterns built from real franchise failures. Red flags. Plain English. Specific questions to ask.

$97 one-time purchase

Analyze My FDD One FDD per purchase. Results in minutes, not weeks.
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The FDD is designed to protect the franchisor, not you.

Hundreds of pages of legal language. Fee tables that hide escalation clauses. Territory definitions that sound protective but aren't. Here's what most buyers miss:

Hidden in Item 6

Fees that escalate with no cap

Technology fees, brand fund contributions, and mandatory vendor charges that can increase without limit. Your $250/month tech fee becomes $350 with 30 days notice. Then $500. No ceiling.

Hidden in Item 7

Startup costs that double

FDD estimates say $172K-$296K. Actual spend frequently exceeds $325K+ once leasehold improvements, architect fees, and real working capital needs are counted.

Hidden in Item 8

Vendor lock-in at premium prices

Required suppliers for bookkeeping ($400-$600/mo), software, insurance, and construction. You can't shop for better prices. The franchisor may have revenue-sharing deals with these vendors.

Hidden in Item 20

Franchisee exits they don't highlight

How many locations closed in the last 3 years? What's the turnover rate? The data is buried in Item 20 - and the franchisor is legally required to give you former franchisee contact info. Most buyers never ask.

What the AI FDD Analyzer does

Upload your FDD as a PDF or paste the text. Get expert-level analysis in minutes.

1

All 23 FDD Items analyzed

Each item in your FDD is scanned against risk patterns derived from real franchise failures and FTC enforcement data. Nothing gets skipped.

2

Red, yellow, and green flags

Every finding is color-coded by severity. Red means investigate immediately. Yellow means proceed with caution. Green means this area looks standard.

3

Plain-English explanations

No legal jargon. Each finding is explained in language anyone can understand - what the clause actually means for your money and your rights.

4

Specific questions to ask the franchisor

Based on YOUR specific FDD findings, the analyzer generates targeted questions you should ask before signing. These are the questions that protect your investment.

5

Overall deal risk score

A 0-100 score that factors in fee structure, territory protection, exit terms, franchisor financial health, and litigation history. One number that tells you where you stand.

6

Industry benchmark comparison

Your franchise fees, royalty rates, territory terms, and financial projections are compared against industry norms. See exactly where your deal falls relative to standard franchise economics.

7

Franchise vs. independent viability score

Based on the fee structure, territory terms, and financial data in your FDD, we estimate whether you'd be better off building an independent business in the same industry. A side-by-side comparison of the economics.

8

Downloadable PDF report

A comprehensive branded report you can save, print, share with your spouse, or hand to your attorney. This is the document you reference for weeks while making your decision.

Sample analysis output

Here's what a real Item 6 analysis looks like:

Item 6: Other Fees

HIGH RISK
RED FLAG
The technology fee has no cap on increases. The FDD states the franchisor "may adjust fees for required technology systems" with no maximum limit. This means your current tech fee could increase to any amount with as little as 30 days written notice - and you have no recourse.
Ask the franchisor: "What has the technology fee been for each of the last 3 years? What is the maximum it could increase to in the next 5 years?"
RED FLAG
A minimum royalty floor means you pay a fixed dollar amount in royalties regardless of revenue. If your business has a slow quarter, the royalty doesn't adjust down - creating significant cash flow pressure during the months you can least afford it.
Ask the franchisor: "Is the minimum royalty waived during temporary closures or force majeure events? What percentage of franchisees are currently paying the minimum vs. the percentage rate?"
CAUTION
Mandatory use of a franchisor-designated vendor for a core business function. This cost is separate from any independent providers you might prefer. Check whether the franchisor or its affiliates receive revenue from this mandatory vendor relationship (FDD Item 8).
Ask the franchisor: "Does the franchisor or any affiliate receive compensation from this required vendor? Can I use my own provider if they meet specified standards?"

View the full multi-item sample report -->

How this compares

DIY Review AI FDD Analyzer
Time to complete 40-60 hours
(full attorney due diligence)
Under 15 minutes
(initial risk assessment)
Red flag detection What you happen to catch 50+ risk patterns checked
Industry benchmarks None unless you research Built into every finding
Questions to ask You're guessing Tailored to your FDD
Downloadable report Your own notes Branded PDF for your records
Cost Free (but what are you missing?) $97 one-time

Common questions

How does it work?
After purchase, you're taken directly to the analyzer. You can upload your FDD as a PDF and we'll automatically extract and sort the text into each of the 23 FDD items - or you can paste text into guided sections manually. Our AI analyzes the content against 50+ risk patterns and gives you a color-coded report with plain-English findings, specific questions to ask, and a franchise vs. independent viability comparison.
Do I need to paste the entire FDD?
No. The more you paste, the more thorough the analysis. But even if you only paste 5-6 key items (we recommend Items 5, 6, 7, 8, 17, 19, and 20 at minimum), you'll get valuable insight. Items you skip are marked as "not analyzed."
Can I analyze multiple FDDs?
Each purchase covers one FDD analysis. If you're comparing multiple franchise opportunities, the Franchise Decision Kit ($297) gives you 5-way franchise comparison, negotiation practice, and validation call scripts - the next step after your analysis.
Is this a substitute for a franchise attorney?
No. This tool is designed to help you understand your FDD and ask better questions - not to replace legal advice. We strongly recommend consulting a franchise attorney before signing any agreement. This analysis helps you know what to discuss with your attorney so you're not paying $400/hour for them to explain basics.
Is my FDD data kept private?
Yes. If you upload a PDF, the text extraction happens entirely in your browser - your file is never uploaded to our servers. The extracted text is then processed in real-time by our AI analysis engine and is not stored after your analysis is complete. We do not retain, share, or use your FDD content for any purpose other than generating your analysis.
How long can I access my results?
Your downloadable PDF report is available immediately after analysis. Download and save your report before closing the tab. Your analysis is not stored on our servers after your session ends. If your analysis is interrupted or you experience a technical error, email franchisegradesystems@gmail.com with your order number and we will reset your access.
Where do the risk patterns come from?
Our detection rules are built from real franchise failures, FTC enforcement actions, NASAA franchise examination guidelines, and direct experience with franchise investments that went wrong. These aren't theoretical - they're patterns that cost real franchisees real money.

Don't sign until you actually know.

You're about to invest $150K-$500K+ into a franchise. Spending $97 to understand what's actually in that FDD isn't caution - it's common sense.

Analyze My FDD - $97
One FDD per purchase. Instant access after payment.
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Important: This tool provides educational and operational analysis only. It is not a substitute for legal or financial advice. Always consult a qualified franchise attorney and CPA before making investment decisions.

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If Your Analysis Shows High Risk

Not every franchise deal is worth saving. If your FDD analysis reveals structural problems, the Franchise-Grade Systems Playbook gives you a complete operational playbook for building the same type of business independently - without franchise fees, royalties, or loss of control.

See the Franchise-Grade Systems Playbook →
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FDD Red Flags Guide

12 pages of the exact warning signs that cost franchise buyers thousands. Built from nearly two decades of enterprise operations experience and a personal six-figure franchise failure.