FranchiseDiff Blog
FDD explainers, a glossary of franchise terms, and aggregate data reports across the FranchiseDiff dataset. Every claim is sourced. We don't rank or recommend brands.
FDD Education
View all →FDD Item 5 vs Item 7: Initial Fee vs Initial Investment
The two cost numbers in every FDD. A short, factual guide to what each one covers, why they aren't interchangeable, and how to read them together.
May 2, 2026 · 6 min read
How to Read FDD Item 19 (Financial Performance Representations)
Item 19 is optional, regulated, and the most-misread part of any FDD. A factual guide to what is actually being disclosed and what is not.
May 2, 2026 · 6 min read
What Is an FDD? A Plain-English Walkthrough of All 23 Items
A short, factual walkthrough of every item in a Franchise Disclosure Document, with the FTC Franchise Rule citations behind each one.
May 2, 2026 · 7 min read
Data Reports
View all →Process & How-To
View all →Glossary
View all →Ad Fund Contribution
A recurring fee franchisees pay into a brand-wide marketing pool, separate from the royalty and from any local advertising obligation.
Initial Franchise Fee
A one-time payment to the franchisor for the right to operate a single franchised unit — usually due before the unit opens, and typically non-refundable.
Royalty Fee
An ongoing percentage fee a franchisee pays the franchisor on gross sales — the core economic engine of most franchise systems.
