2 document warnings1 thing to verifyFranchisor financials: moderate concern
Tint World — full diligence report
The average Tint World unit reports $68k/mo in revenue.
Opening one costs $250k–$480k.
DisclosedItem 19 · 120 units reporting · Item 7 · 149 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.
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.
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
18 locked
Item 7, as the franchisor states it. 18 line items.
Initial Franchise FeeDisclosedItem 7, pp. 15-21Locked
Lease Rent, Deposits, Leasehold ImprovementsDisclosedItem 7, pp. 15-21 – Locked
Showroom Displays, Furniture PackageDisclosedItem 7, pp. 15-21 – Locked
Signage Brand PackageDisclosedItem 7, pp. 15-21 – Locked
Equipment, Tools PackageDisclosedItem 7, pp. 15-21 – Locked
Administrative Merchandise, Window Graphics PackageDisclosedItem 7, pp. 15-21 – Locked
Freight, Delivery PackageDisclosedItem 7, pp. 15-21 – Locked
Software Technology PackageDisclosedItem 7, pp. 15-21Locked
Computer Hardware, Phones PackageDisclosedItem 7, pp. 15-21 – Locked
Initial Inventory, Supplies PackageDisclosedItem 7, pp. 15-21 – Locked
Grand Opening Event Promotion PackageDisclosedItem 7, pp. 15-21Locked
Business InsuranceDisclosedItem 7, pp. 15-21 – Locked
Business LicensesDisclosedItem 7, pp. 15-21 – Locked
Accounting, Legal ExpensesDisclosedItem 7, pp. 15-21 – Locked
Travel, Living, Training ExpensesDisclosedItem 7, pp. 15-21 – Locked
Miscellaneous ExpenseDisclosedItem 7, pp. 15-21 – Locked
Additional Funds, Three MonthsDisclosedItem 7, pp. 15-21 – Locked
Total investmentDisclosedItem 7, pp. 15-21 – Locked
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 — Network Average
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 revenueDisclosedLocked
2. − Franchise feesDisclosedLocked
3. − Fixed monthly feesDisclosedLocked
4. − Rent & occupancyDisclosedLocked
5. = Margin after fees & rentDerivedLocked
Not profit. Cost of goods, labor and operating costs have not been subtracted yet.
6. − Cost of goodsBenchmark – Locked
7. − LaborBenchmark – Locked
8. − Other operating costsBenchmark – Locked
9. = Operating EBITDABenchmark – Locked
Before debt service, owner compensation, depreciation and taxes.
10. − Debt serviceDerivedLocked
11. = Cash after debt, before owner drawBenchmark – Locked
The operator has not been paid out of this yet.
12. Debt-service coverage ratioBenchmark – Locked
Lenders typically want 1.25 or better: $1.25 of operating profit for every $1.00 of loan payment.
13. Years to recover the build-outBenchmarkLocked
Recovery of the build-out only, and it does not include the operator's own time. At the low end of the modeled cost range the unit does not generate operating profit, so the build-out is never recovered.
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 debtDerived – Locked
Return on your cashDerived – Locked
Debt-service coverage ratioDerived – Locked
What this unit could supportDerivedLocked
Ongoing fees and hidden costs
21 locked
21 separate charges in the agreement. Most buyers find four.
RoyaltyDisclosedItem 6Locked
Brand fundDisclosedItem 6Locked
Local advertisingDisclosedItem 6Locked
Technology FeeDisclosedItem 6Locked
Center Operations POS Software License FeeDisclosedItem 6Locked
Accounting Services FeeDisclosedItem 6Locked
Startup Local Advertising ExpenditureDisclosedItem 6Locked
Mobile Services POS Software License FeeDisclosedItem 6Locked
Mobile Services Advertising ExpenditureDisclosedItem 6Locked
Mobile Services Territory FeeDisclosedItem 6Locked
Mandatory Minimum RoyaltyDisclosedItem 6Locked
Mandatory Minimum NAF FeeDisclosedItem 6Locked
Periodic Center Upgrade/RemodelDisclosedItem 6Locked
Mystery Shopper FeeDisclosedItem 6Locked
National & Fleet Account Processing FeeDisclosedItem 6Locked
Credit Card Payment Service FeeDisclosedItem 6Locked
Loan Packaging Service FeeDisclosedItem 6Locked
Development Schedule Extension FeeDisclosedItem 6Locked
Supplier Evaluation FeeDisclosedItem 6Locked
Continuing Education FeeDisclosedItem 6Locked
Liquidated Damages on TerminationDisclosedItem 6Locked
What units actually make
2 locked
The franchisor's own numbers, and how wide the spread really is.
Network averageDisclosedItem 19, pp. 49-54Locked
Units reportedDisclosedItem 19, pp. 49-54Locked
What we found in the document
0 locked
23 Items located and parsed. Every figure above cites one of them.
1 things this document cannot settle, and how to settle them.
Operational tripwires
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Franchisor financial condition
4 locked
4 findings from the audited statements.
1 medium
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Operational tripwires
12 locked
12 clauses that change what you signed up for. 4 are rated high.
4 high8 medium
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System scale and turnover
5 locked
Item 20, year-end.
Total unitsDisclosedItem 20, pp. 55-60Locked
OpenedDisclosedItem 20, pp. 55-60Locked
ClosedDisclosedItem 20, pp. 55-60Locked
Changed handsDisclosedItem 20, pp. 55-60Locked
Owner turnoverDerivedLocked
145 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.
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
13 locked
14 questions, grouped for operators running a unit today, operators who left last year, placing whoever answers the phone.
What do you actually run for cost of goods, as a percent of sales?
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Who runs it
6 locked
6 executives, with tenure and prior operating history.
Founder & Chief Executive OfficerPresident & Chief Investment OfficerChief of StaffChief Operating OfficerChief Development OfficerVice President of Finance