Know what a franchise costs, what its owners report in sales, and how often its SBA loans failBefore you sign — the data franchisors won't hand you

A Franchise Disclosure Document is a legal filing every franchisor must provide to prospective buyers at least 14 days before signing. It contains 23 items covering fees, obligations, financial performance, litigation history, and franchisee contact information.

Initial franchise investment ranges vary widely, from under $50,000 for home-based service brands to over $2 million for restaurant or hotel concepts. FDD Item 7 discloses the estimated initial investment range for each brand.

The SBA charge-off rate measures the percentage of Small Business Administration 7(a) loans for a franchise brand that were charged off (including SBA-purchased guarantees) versus those that were fully repaid. FranchiseVerdict calculates charge-off rates from resolved loans only, excluding active loans whose outcome is still unknown (resolved means fully paid or charged off). Our loan corpus tracks both SBA 7(a) and 504 records, but the per-brand charge-off rate is computed from 7(a) loans only, because 7(a) is the primary lending vehicle for franchise acquisitions and 504 loans are used for real estate.

FranchiseVerdict assigns each brand a Verdict Grade (A through F) based on a composite risk score. The score weighs SBA charge-off rates, revenue-to-investment ratio, unit growth trajectory, and FDD disclosure signals such as bankruptcy history and litigation counts. Read the full methodology. Grades are for informational comparison only and do not constitute investment advice.

Yes. Browsing every brand, viewing verdict grades, investment ranges, revenue data, and SBA charge-off rates is completely free. FranchiseVerdict earns revenue from optional premium products: franchisee contact lists ($49/brand) and detailed FDD analysis reports ($5/brand).

Most franchise portals earn revenue from franchisors through advertising or lead sales, creating a conflict of interest. FranchiseVerdict earns $0 from franchisors. Three things set us apart: (1) we are one of the few sites that match SBA 7(a) charge-off rates to individual franchise brands, so you can see real loan failure data before you invest; (2) every brand receives a Verdict Grade from A to F based on composite risk scoring across financials, growth, and disclosure signals; and (3) our side-by-side comparison tool lets you stack brands head-to-head on investment cost, revenue, charge-off rate, and unit growth. Our data comes from public FDD filings and SBA FOIA records, the same sources a franchise attorney would use. See our methodology.

Franchise earnings vary widely by brand, location, and operator experience. FDD Item 19 is where franchisors may disclose financial performance data, but not all franchisors include it. When available, FranchiseVerdict displays the reported figures, which may represent mean, median, or other measures. Always verify directly with current franchisees before making investment decisions.

Yes, and you should. FDD Item 20 requires franchisors to list contact information for every current and former franchisee. FranchiseVerdict extracts these contacts and provides them as downloadable CSV files for $49 per brand, including active owners, terminated owners, and brand-specific validation questions to ask. Contacts are for personal due diligence only — not for telemarketing or automated calls.

No. Gross sales are revenue before expenses. They do not include labor, rent, royalties, marketing fees, debt service, taxes, or owner compensation. A brand with high gross sales can still be unprofitable. Always verify the FDD and speak with current and former owners before drawing conclusions about earnings.

No. FranchiseVerdict is an independent research tool for informational purposes only. Verdict Grades, rankings, SBA charge-off data, and all figures on the site are not financial, legal, or investment advice. Always consult a qualified advisor and verify the FDD before making an investment decision.