The average Gotcha Covered unit reports $49k/mo in revenue.
Opening one costs $123k–$217k.
DisclosedItem 19 · 125 units reporting · Item 7 · 172 open units
Both figures are the franchisor’s own, straight out of the disclosure document. What is masked below is the rest of the analysis — and the capital check that follows measures your cash against that opening range.
12 sections · 70 cited figures · 2 operational tripwires · 14 diligence questions
Everything below is in the report. Every figure is cited to an FDD Item and page, and labelled with where the number came from. The labels are free. The numbers are what you are buying.
Franchise Edge automates franchise diligence. We read the franchisor’s own Franchise Disclosure Document — the filing a franchisor is legally required to hand you at least 14 days before you sign anything or pay anything — and run the work that takes a buyer weeks by hand: every disclosed cost, the unit economics behind the headline, the full fee stack, and what happened to the units that opened before you.
Your analysis is ready. The framework is below — every section, every cited figure, every question, exactly as it appears in the report.
An FDD runs to 23 numbered Items and a few hundred pages. Four of them do most of the work in this report:
Every figure in the report is cited to its Item and page, so you can check any of it against the document yourself.
Questions before you buy? jason@foundersplinko.com — a person, not a ticket queue.
Against the total investment the franchisor discloses in Item 7. What it means for your loan, your coverage ratio and your payback is locked.
Item 7, as the franchisor states it. 10 line items.
What the deal asks of you, against what you told us you have.
13 rungs, monthly, from disclosed revenue down to what the operator actually keeps. Every rung is labelled with where its number came from.
Not profit. Cost of goods, labor and operating costs have not been subtracted yet.
Before debt service, owner compensation, depreciation and taxes.
All cash, so this is rung 9 unchanged. The operator has not been paid out of this yet.
Recovery of the build-out only. It does not include the operator's own time.
The loan this unit would need, and whether the unit can carry it.
5 separate charges in the agreement. Most buyers find four.
The franchisor's own numbers, and how wide the spread really is.
7 Items located and parsed. Every figure above cites one of them.
1 things this document cannot settle, and how to settle them.
2 clauses that change what you signed up for. 1 is rated high.
Item 20, year-end.
166 outlets is this record's reconstruction of the starting count, worked back from the year-end total and the year's openings and closures rather than read from Item 20 Table 1. Every rate below is a share of that starting count, not of today's. Check the reconstruction against Table 1 in your own copy.
Item 17 — how long you are in, what ends the agreement, what it takes to sell the business, and what you are still bound by after you leave.
14 questions, grouped for operators running a unit today, operators who left last year, placing whoever answers the phone.
3 executives, with tenure and prior operating history.
12 sections · 70 cited figures · instant access
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