FDD Item 7: Advising Clients on Initial Investments

Apr 17, 2020 | Franchise Education

FranNet CEO, Jania Bailey, reviews the things you need to be aware of while looking at Item 7 in an FDD. At FranNet, we advise our clients to compare that initial investment estimate with existing franchisees that are in markets similar to yours. Important factors to consider are things like lease or build-out costs — these things will vary greatly from state to state. Figure out where you fit in on that scale and conduct validation accordingly.