FDD Library

Convenience Store / Retail3 red flags

~13,000+ (as of 2024) units

Item 5 — Gross Profit Split Model Creates Unusual Economics

Ace Hardware

Retail / Home Improvement1 red flag

~4,600+ (as of 2024) units

Item 19 — Cooperative Model Creates Unique Owner Economics

Fitness / 24-Hour Gym2 red flags

Anytime Fitness

~2,600 (as of 2024) units

Item 19 — Financial Performance Representations Available

Chick-fil-A

QSR / Chicken2 red flags

~3,000+ (as of 2024) units

Item 19 — Highest AUVs in QSR, Period

Specialty Bakery / Dessert QSR4 red flags

Crumbl Cookies

~1,000+ (as of 2024) units

Item 3 — Active Litigation: IP Wars and Internal Disputes

QSR / Pizza Delivery1 red flag

Domino's

A-

~6,800+ (as of 2024) units

Item 19 — Industry-Leading Technology and Delivery Infrastructure

QSR / Coffee & Baked Goods2 red flags

Dunkin'

~9,500+ (as of 2024) units

Item 19 — Strong Beverage-Driven Margins and Morning Daypart Dominance

Fitness / Boutique Functional Training5 red flags

F45 Training

~450–500 (as of 2024; significantly down from peak) units

Item 20 — Massive Net Unit Decline is a Serious Warning

Great Clips

Personal Services / Hair Salon1 red flag

~4,400+ (as of 2024) units

Item 19 — Strong and Transparent Financial Performance Data

HomeVestors

Real Estate / Home Buying3 red flags

~1,100+ (as of 2024) units

Item 19 — High Revenue Potential but Extreme Variance Between Operators

Commercial Cleaning / Janitorial Services5 red flags

Jan-Pro Cleaning

~9,000+ (unit franchisees; ~130 regional master franchisees) units

Item 3 — Significant Litigation History

QSR / Fast Casual Sandwich2 red flags

Jersey Mike's Subs

~2,800+ (as of 2024) units

Item 19 — Disclosed Revenues Support the Model

Education / Tutoring2 red flags

Kumon

~1,500+ (as of 2024) units

Item 19 — Recurring Revenue Model With Strong Retention

Massage Envy

Personal Services / Wellness3 red flags

~1,100+ (as of 2024) units

Item 19 — Membership Model Creates Recurring Revenue but Caps Upside

McDonald's

A-

QSR / Burger1 red flag

~13,400+ (as of 2024) units

Item 19 — Industry-Leading AUVs and Proven Unit Economics

Specialty Bakery / Gifting2 red flags

Nothing Bundt Cakes

~600+ (as of 2024) units

Item 19 — Solid Revenue Data with Gifting-Model Stability

Fitness / Boutique Studio4 red flags

Orangetheory Fitness

~1,500 (as of 2024) units

Item 21 — Declining Unit Counts and High Closure Rate

Fitness / Value Gym2 red flags

Planet Fitness

~2,400 (as of 2024) units

Item 19 — Strong Revenue Disclosure with High Median Performance

Servpro

Home Services / Disaster Restoration1 red flag

~2,200+ (as of 2024) units

Item 19 — High Revenue Potential With Insurance-Backed Payment

Mobile Tool Sales / Route Franchise3 red flags

Snap-on Tools

~3,400 (as of 2024) units

Item 7 — Inventory Financing Creates Hidden Debt Load

Personal Services / Hair Salon2 red flags

Sport Clips

~1,800+ (as of 2024) units

Item 19 — Niche Positioning Commands Premium Pricing

Subway

QSR / Sandwich3 red flags

~20,000+ (as of 2024) units

Item 19 — Wide Revenue Variance Across the System

QSR / Mexican-Inspired1 red flag

Taco Bell

A-

~8,200+ (as of 2024) units

Item 19 — Strong AUVs Driven by Menu Innovation and Value Positioning

Business Services / Shipping & Printing2 red flags

The UPS Store

~5,700+ (as of 2024) units

Item 19 — Diversified Revenue Streams Provide Stability

QSR / Fast Casual Wings2 red flags

Wingstop

~1,900+ (as of 2024) units

Item 19 — Strong AUVs and Public Company Transparency