# Franchisor question list

Ask the franchisor in writing. Ask operators separately — that script lives on [validation calls](/validation-calls/). Mixing the audiences produces sales answers from people who cannot bind the company, and operating answers from people who will not have the Item 22 exhibits in front of them.

Record the date, the name of the person who answered, and the FDD page they pointed to. "We'll get back to you" is an open item, not a comfort.

<div class="checklist" markdown="1">

The list

1. What is the legal name of the franchisor, and which affiliates will take fees, sell goods, or sign software licenses? (Item 1)
2. Please confirm the issue date of the FDD you have furnished, and list every amendment since. (Cover, Item 23)
3. Is this offering currently registered or filed in the state of the buyer and of the proposed site? Please point to the state file. (Registration statutes; [Wisconsin search](https://apps.dfi.wi.gov/apps/FranchiseSearch/) is a public example)
4. Which format is being offered to us — square feet, seating, channels — and which Item 7 table applies? (Items 7, 12)
5. If more than one format exists (express vs full, ghost kitchen vs restaurant, kiosk vs inline), which formats are *not* in this FDD? (Items 1, 7)
6. What is the initial franchise fee for a first-time buyer, and which discounts, if any, require ownership of an affiliated brand? (Item 5; Great Greek's 2023 filing discounts the low end for affiliated owners)
7. For each Item 6 percentage, what is the contractual definition of gross sales, and what is excluded? (Item 6, agreement)
8. Which Item 6 charges may be raised during the term, to what cap, or with no cap? (Item 6; GDK's 2024 FDD discloses uncapped annual increases on royalty and brand fund)
9. Please list technology, software, payment, and similar fees that are dollars rather than percentages, including Dog Haus-style annual development fees if they apply to this brand. (Item 6)
10. Does the high column of Item 7 add to the printed total? If not, which figure should a buyer plan to? (Item 7; Shah's 2024 high lines sum to $410,000 against a printed $405,000)
11. What period do "additional funds" cover, and what do they exclude — owner salary, debt service, rent overrun, slow ramp? (Item 7)
12. Is a standalone single unit offered, or is there a minimum development schedule? If a minimum, what is the store count and the first missed-date consequence? (Items 5, 12, 22; GDK's 2024 FDD is a five-outlet minimum)
13. Must we buy food, packaging, equipment, or software from you or an affiliate, and do you or affiliates receive rebates or mark-ups? Please point to the Item 8 disclosure of that revenue. (Item 8)
14. May we propose an alternate supplier, and what is the process and typical timeline? (Item 8)
15. Who must attend training, where, how often is a class seated, and who pays travel, wages, and repeat training if a manager leaves? (Item 11)
16. What opening assistance *will* you provide — not "may" — and for how many days? (Item 11)
17. Please provide the operations-manual table of contents. (Item 11)
18. Is the territory exclusive, protected, or neither? Please quote the reserved rights for delivery, grocery, and captive venues. (Item 12; Capriotti's 2024 comparative record discloses no protected area)
19. How is the area sized, and is there a minimum size? (Item 12; GDK's 2024 territory has no minimum size)
20. Is a financial performance representation in Item 19? If yes, which outlets, which period, which metric, and how many were excluded? If no, please confirm that sales staff will not quote unit sales. (Item 19)
21. For GDK-style one-unit samples: is the represented shop the same format we would build, or a mall/captive venue? (Item 19; GDK 2024 used one full-year unit at American Dream Mall)
22. Please reconcile any Item 1 outlet claim with Item 20's year-end count. (GDK 2024: nine at issuance vs seven at year-end 2023)
23. How many of the Item 20 locations are franchised, licensed, or company? (Shah's 2024: 0 franchised, 44 licensed of 58)
24. Please explain last year's terminations, non-renewals, and reacquisitions, by category, in writing. (Item 20)
25. The current and former franchisee lists in Item 20 — is anyone omitted under the rule's criteria, and may we call the former list without a chaperone? (Item 20)
26. If marketing materials show hundreds of international locations, how many are in this US Item 20? (Pepper Lunch's 2024 comparative record: 6 US units)
27. Whose financial statements are in Item 21 — franchisor or parent — and is there a parent guarantee? (Item 21)
28. What is the initial term, the renewal right, the renewal fee, and whether we must sign the then-current agreement? (Item 17; Great Greek 2023: 35 years; Wienerschnitzel 2024 comparative record: no renewal)
29. Is there a right to transfer or sell the business? If not, please confirm. (Wienerschnitzel 2024 comparative record: no right to sell)
30. Please provide the Item 22 list and confirm the signature drafts match those exhibits, or redline every difference. (Item 22; [seven-day rule](/fourteen-day-rule/) on unilateral material changes)
31. What personal guarantees are required, from whom, and do they survive transfer, termination, or expiration? (Agreement)
32. What is the site-approval process, typical rejection reasons, and whether a rejected site extends development deadlines. (Items 11, 12, development agreement)
33. What remodel or brand-standard refresh is required during the term and at renewal, and is there a spend cap? (Items 11, 17)
34. Which required insurance limits, and may we use our own broker? (Items 7, 8)
35. For SBA or other financing: is the brand on the SBA Franchise Directory, and will you complete lender forms? This is a process question, not a request that you quote a rate. (Item 10; [7(a) overview](https://www.sba.gov/funding-programs/loans/7a-loans))
36. What is the current net-worth or liquidity screen, and on which FDD page or application form does it appear? If it is not in the FDD, say so. (This dataset does not record brand minimums)
37. Please list every payment you or an affiliate would accept before day fifteen after FDD delivery, and confirm none is required. ([FTC Rule](https://www.ftc.gov/legal-library/browse/rules/franchise-rule))
38. Discovery day: which shops will we tour, and which Item 7 format are they? ([Discovery day](/discovery-day/))
39. Who at the company is authorized to put answers in writing that we may show counsel? (Item 2 titles vs actual authority)
40. Please confirm in writing that we should rely on the furnished FDD and exhibits, not on decks, locators, or heatmaps. (Cover; Item 19)

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## How to use the answers

Build a three-column log: question number, answer with page cite, open/closed. Unanswered questions after a reasonable time are data. A refusal to put Item 6 cap language in writing is data. A cheerful "our franchisees do great" that does not point at Item 19 is data.

Do not send operators this list. They cannot amend Item 17. Do not ask the franchisor to validate a sales target that is not in Item 19. Do not ask anyone to violate a confidentiality clause for you.

Worked batches. Before discovery day: 4, 5, 20, 38. Before financing conversations: 10, 11, 12, 35, 36. Before signature: 8, 18, 28, 29, 30, 31, 37.

Shah's licensed-versus-franchised structure (FDD issued 10 April 2024) makes questions 23 and 25 load-bearing. Wienerschnitzel's no-renewal, no-sale structure (May 2024 comparative study) makes 28 and 29 load-bearing. GDK's five-outlet minimum and uncapped fees (FDD issued 3 September 2024) make 8 and 12 load-bearing. Capriotti's lack of a protected area (May 2024 comparative study) makes 18 load-bearing. If the seller is annoyed that you asked, you asked the right Item.

## Related reading

- [Validation calls](/validation-calls/) — the operator script, not this one
- [Comparison worksheet](/comparison-worksheet/) — where the answers go
- [Fourteen-day rule](/fourteen-day-rule/) — question 37
- [Item 19](/item-19/) — questions 20–21
- [Red flags in franchise marketing](/red-flags-in-franchise-marketing/) — what to do when the answer and the deck disagree

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