1 thing to verify

The Back Nine — full diligence report

The average The Back Nine unit reports $20k/mo in revenue.

Opening one costs $307k–$689k.

DisclosedItem 19 · 45 units reporting · Item 7 · 124 open units · 2026 FDD

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.

11 sections · 63 cited figures · 0 operational tripwires · 9 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.

New to FDDs? Here is what is in one

An FDD runs to 23 numbered Items and a few hundred pages. Four of them do most of the work in this report:

  • Item 7— what it costs to open, low to high. That is the range above, and it is the franchisor’s own estimate.
  • Item 19 — what units actually earn. A franchisor is not required to publish one at all; when it is missing, or when it reports profit where you expected revenue, that is itself a finding.
  • Item 20 — openings, closures, transfers and terminations, year by year. This is where churn shows up, and where a growth story either holds or does not.
  • Item 6 — the ongoing fees. Royalty and ad fund get quoted on a discovery call; the rest of the list usually does not.

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.

Disclosedstated in this FDDDerivedour calculation from disclosed figuresBenchmarkour industry range, because the FDD does not disclose itInferredAI classification
Drag to enter the capital you have available.

Against the total investment the franchisor discloses in Item 7. What it means for your loan, your coverage ratio and your payback is locked.

What it costs to open

16 locked

Item 7, as the franchisor states it. 16 line items.

Initial Franchise FeeDisclosedItem 7, pp. 14-16Locked
Travel expenses while trainingDisclosedItem 7, pp. 14-16Locked
Real Estate ImprovementsDisclosedItem 7, pp. 14-16Locked
SignageDisclosedItem 7, pp. 14-16Locked
EquipmentDisclosedItem 7, pp. 14-16Locked
Miscellaneous SuppliesDisclosedItem 7, pp. 14-16Locked
Initial Supply of Advertising MaterialsDisclosedItem 7, pp. 14-16Locked
Marketing Launch Ad SpendDisclosedItem 7, pp. 14-16Locked
Premises DepositDisclosedItem 7, pp. 14-16Locked
FurnitureDisclosedItem 7, pp. 14-16Locked
Business Licenses and PermitsDisclosedItem 7, pp. 14-16Locked
Professional FeesDisclosedItem 7, pp. 14-16Locked
Security/AutomationDisclosedItem 7, pp. 14-16Locked
Utility DepositsDisclosedItem 7, pp. 14-16Locked
Additional Funds - 3 monthsDisclosedItem 7, pp. 14-16Locked
Total investmentDisclosedItem 7, pp. 14-16Locked

Buyer-fit underwriting

5 locked

What the deal asks of you, against what you told us you have.

Capital gapDerivedLocked
Loan neededDerivedLocked
Net worth requirementDisclosedItem 5Locked
Liquid capital requirementDisclosedItem 5Locked
Margin after fees, rent and debtDerivedLocked

The cash ladder — Item 19 top line

13 locked

13 rungs, monthly, from disclosed revenue down to what the operator actually keeps. Every rung is labelled with where its number came from.

1. Gross revenueDerivedLocked
2. − Franchise feesDerivedLocked
3. − Fixed monthly feesDerivedLocked
4. − Rent & occupancyDerivedLocked
5. = Margin after fees & rentDerivedLocked
6. − Cost of goodsDerivedLocked
7. − LaborDerivedLocked
8. − Other operating costsDerivedLocked
9. = Operating EBITDADerivedLocked
10. − Debt serviceDerivedLocked
11. = Cash after debt, before owner drawDerivedLocked
12. Debt-service coverage ratioDerivedLocked
13. Years to recover the build-outDerivedLocked

How you pay for it

9 locked

The loan this unit would need, and whether the unit can carry it.

Loan amountDerivedLocked
RateBenchmarkLocked
TermBenchmarkLocked
Monthly paymentDerivedLocked
Cash you put inDerivedLocked
Cash after debtDerivedLocked
Return on your cashDerivedLocked
Debt-service coverage ratioDerivedLocked
What this unit could supportDerivedLocked

Ongoing fees and hidden costs

1 locked

1 separate charges in the agreement. Most buyers find four.

RoyaltyDisclosedItem 6Locked

What units actually make

5 locked

The franchisor's own numbers, and how wide the spread really is.

Network average (units with ≥3 bays, open ≥6 months)DisclosedItem 19Locked
Top 10% of reporting unitsDisclosedItem 19Locked
Bottom 30% of reporting unitsDisclosedItem 19Locked
Network averageDisclosedItem 19Locked
Units reportedDisclosedItem 19Locked

What we found in the document

0 locked

0 Items located and parsed. Every figure above cites one of them.

Before you commit

1 locked

1 things this document cannot settle, and how to settle them.

Locked finding

Operational tripwires

0 locked

0 clauses that change what you signed up for.

System scale and turnover

5 locked

Item 20, year-end.

Total unitsDisclosedItem 20Locked
OpenedDisclosedItem 20Locked
ClosedDisclosedItem 20Locked
Changed handsDisclosedItem 20Locked
Owner turnoverDerivedLocked

Leaving — renewal, exit and transfer

Not yet read for this brand

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.

How long you are inHow it endsHow you sell itWhat happens after

Who to call, and what to ask

8 locked

9 questions, grouped for operators running a unit today, placing whoever answers the phone.

What do you actually run for cost of goods, as a percent of sales?
Locked finding
Locked finding
Locked finding
Locked finding
Locked finding
Locked finding
Locked finding
Locked finding

Who runs it

Not yet read for this brand

The people running the franchisor, how long they have been there, and what they operated before this.

TenurePrior operating history

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