FDD Item 7 is the franchise buyer's first serious cash-requirement test. It estimates what the buyer may need to spend before opening and during the initial operating period. The risk is not only that the number is high. The bigger risk is that the buyer underwrites the low end of the range while the real site, labor market, buildout, financing, and working-capital needs point toward the high end.
The Item 7 Estimated Initial Investment Table
Item 7 benchmark records for 55 franchise brands across 56 formats and 10 categories. The renderer does not round or blend stored rows. 1 brand currently has an exact registry, document, year, and page locator published in this repository; the remaining pages disclose that their locator is unavailable. Item 7 is a franchisor estimate and this is legal information, not legal advice. Verify every figure against the current FDD.
| Brand | Category | FDD Year | Low | High | Franchise Fee | Real Estate | Source Custody |
|---|---|---|---|---|---|---|---|
| Anytime Fitness | Fitness | 2026 | $539,329 | $905,482 | $42.5k | Excluded | Filing locator not published |
| Batteries Plus | Retail | 2026 | $284,786 | $536,636 | $15k to $49.5k | Partial | Filing locator not published |
| Big O Tires | Automotive | 2025 | $511,500 | $1,882,500 | $10k to $17.5k | Excluded | Filing locator not published |
| BrightStar Care | Senior care | 2026 | $102,754 | $220,186 | $25k to $50k | Minimal | Filing locator not published |
| CertaPro Painters | Home services | 2026 | $171,000 | $320,500 | $65k | Minimal | Filing locator not published |
| Christian Brothers Auto | Automotive | 2024 | $550,250 | $680,400 | $135k | Excluded | Filing locator not published |
| Club Pilates | Fitness | 2025 | $385,048 | $839,058 | $65k | Excluded | Filing locator not published |
| Code Ninjas | Education | 2026 | $174,250 | $265,750 | $45k | Partial | Filing locator not published |
| Comfort Keepers[1] | Senior care | 2026 | $119,560 | $190,700 | $55k | Minimal | Exact filing locator published |
| Crumbl | Food/QSR | 2026 | $848,566 | $1,472,533 | $50k | Excluded | Filing locator not published |
| Dave's Hot Chicken | Food/QSR | 2026 | $616,800 | $2,632,500 | $40k / $20k | Excluded | Filing locator not published |
| Dunkin' | Food/QSR | 2026 | $532,400 | $1,832,500 | $40k to $90k | Excluded | Filing locator not published |
| European Wax Center | Beauty | 2026 | $331,600 | $776,950 | $45k / $36k + dev | Partial | Filing locator not published |
| Express Employment[2] | Business svc | 2026 | $131,000 | $287,700 | $20k to $40k | Partial | Filing locator not published |
| F45 Training | Fitness | 2026 | $362,300 | $857,700 | $60k | Partial | Filing locator not published |
| FastSigns[3] | Business svc | 2026 | $231,225 | $386,285 | $49.75k | Partial | Filing locator not published |
| Firehouse Subs | Food/QSR | 2026 | $405,350 | $875,950 | $20k | Excluded | Filing locator not published |
| GNC | Retail | 2025 | $187,719 | $506,542 | $20k | Partial | Filing locator not published |
| Goddard School | Education | 2026 | $1,003,500 | $1,503,000 | $135k | Partial | Filing locator not published |
| Great Clips | Beauty | 2026 | $187,800 | $419,900 | $20k to $35k | Partial | Filing locator not published |
| Home Instead | Senior care | 2026 | $92,640 | $350,550 | $54k | Minimal | Filing locator not published |
| Jersey Mike's | Food/QSR | 2026 | $436,176 | $1,162,228 | $20k + $10k dev | Partial | Filing locator not published |
| Jimmy John's | Food/QSR | 2026 | $366,200 | $733,500 | $35k | Excluded | Filing locator not published |
| Kumon | Education | 2026 | $101,630 | $233,780 | $2k | Partial | Filing locator not published |
| Lawn Doctor | Home services | 2026 | $135,820 | $163,902 | $114.95k to $118k | Minimal | Filing locator not published |
| Maaco | Automotive | 2025 | $196,000 | $644,000 | $45k | Excluded | Filing locator not published |
| Mathnasium | Education | 2024 | $112,936 | $149,616 | $49k | Partial | Filing locator not published |
| Meineke | Automotive | 2025 | $224,898 | $1,200,818 | $45k | Excluded | Filing locator not published |
| Midas | Automotive | 2026 | $385,450 | $940,050 | $35k | Excluded | Filing locator not published |
| Minuteman Press | Business svc | 2026 | $138,351 | $216,346 | $35k to $48.5k | Partial | Filing locator not published |
| Molly Maid | Home services | 2026 | $144,150 | $203,950 | $14.9k + territory | Partial | Filing locator not published |
| Mosquito Joe | Home services | 2026 | $150,155 | $191,575 | $42.5k | Minimal | Filing locator not published |
| Mr. Handyman | Home services | 2026 | $161,900 | $215,000 | $67k | Minimal | Filing locator not published |
| Once Upon A Child | Retail | 2026 | $355,700 | $485,900 | $25k | Partial | Filing locator not published |
| Orangetheory | Fitness | 2026 | $764,577 | $1,104,920 | $59.95k | Excluded | Filing locator not published |
| Pet Supplies Plus | Retail | 2026 | $520,250 | $1,818,900 | $49.9k | Partial | Filing locator not published |
| Planet Fitness | Fitness | 2026 | $1,282,500 | $5,386,000 | $0 to $40k | Excluded | Filing locator not published |
| PostNet | Business svc | 2026 | $240,200 | $306,800 | $39.95k | Partial | Filing locator not published |
| Primrose | Education | 2026 | $5,016,600 | $7,960,300 | $50k to $80k | Included | Filing locator not published |
| Pure Barre | Fitness | 2026 | $445,299 | $736,465 | $50k to $60k | Partial | Filing locator not published |
| Restore Hyper Wellness | Wellness | 2024 | $817,674 | $1,289,925 | $44.5k | Excluded | Filing locator not published |
| Right at Home | Senior care | 2026 | $94,330 | $176,239 | $49.5k | Minimal | Filing locator not published |
| Scooter's Coffee | Food/QSR | 2025 | $692,150 | $1,523,400 | $40k | Excluded | Filing locator not published |
| Servpro | Home services | 2026 | $263,305 | $385,570 | $100k | Partial | Filing locator not published |
| Smoothie King | Food/QSR | 2026 | $329,850 | $683,715 | $25k to $30k | Excluded | Filing locator not published |
| Sola Salons | Beauty | 2024 | $950,214 | $1,748,296 | $60k | Excluded | Filing locator not published |
| Sport Clips[4] | Beauty | 2026 | $236,800 | $580,500 | $30k to $69.5k | Excluded | Filing locator not published |
| Stanley Steemer | Home services | 2026 | $175,685 | $509,745 | $20k to $100k | Excluded | Filing locator not published |
| Take 5 | Automotive | 2025 | $912,248 | $2,053,642 | $45k | Excluded | Filing locator not published |
| Tropical Smoothie | Food/QSR | 2026 | $275,500 | $770,500 | $17.5k to $35k | Excluded | Filing locator not published |
| Two Men & a Truck | Home services | 2026 | $123,110 | $344,275 | $50k to $130k | Excluded | Filing locator not published |
| UPS Store | Business svc | 2024 | $222,368 | $606,081 | varies | Partial | Filing locator not published |
| Visiting Angels | Senior care | 2026 | $125,460 | $171,150 | $51.95k to $89.95k | Minimal | Filing locator not published |
| Wild Birds Unlimited | Retail | 2024 | $224,273 | $379,309 | $40k | Partial | Filing locator not published |
| Wingstop | Food/QSR | 2026 | $310,400 | $1,048,500 | $25k + $25k dev | Excluded | Filing locator not published |
Data-quality footnotes (preserved, not corrected)
- The sourced filing lists the additional-funds high as equal to the total high. The figures are preserved as filed and the inconsistency is disclosed.
- The benchmark note records a branch-format table low of $39,450 and a summary-sentence low of $30,950. The table value is stored and the reported variance is preserved.
- The benchmark note records summary-versus-table gaps of $1 to $1,000 across the FastSigns formats. Table values are stored and the reported gaps are preserved.
- The benchmark note records an Item 7 table low of $236,800 and a summary-sentence low of $226,800. The table value is stored and the reported variance is preserved.
Want one brand in filing-level detail? Every brand in the table above has its own page at Franchise Costs by Brand, with the format breakdown, the real-estate handling, and the verified notes from the filing. The methodology and category summaries live in the FDD Item 7 Investment Benchmark.
Use this page before signing, paying, or sending the FDD package to a lender. It is legal information, not legal advice.
Quick Answer: What Is FDD Item 7?
FDD Item 7 is the estimated initial investment section of a Franchise Disclosure Document. 16 CFR 436.5(g) specifies the required table and disclosures, including the initial franchise fee, training expenses, real-property treatment, equipment and fixtures, opening inventory, required security deposits and other payments, additional funds for the initial phase, total estimate, payment timing and method, refundability, financing, and the basis for the estimates. For a buyer, those disclosed estimates should be tested against the actual site, lease, buildout, equipment package, opening inventory, training travel, professional fees, financing costs, and working capital. Neither endpoint is a promise of the buyer's actual cost.
The FTC buyer guide is the primary consumer resource for understanding FDD timing and diligence.
What FDD Item 7 Includes
Item 7 presents the estimated initial investment through required categories and any system-specific line items. The exact figures and assumptions vary by franchise system.
| Item 7 category | Buyer question |
|---|---|
| Initial franchise fee | When is it due, and when does it become nonrefundable? |
| Leasehold improvements | Does the estimate fit the actual site, landlord work letter, and local construction costs? |
| Equipment and signage | Are required suppliers, technology, and installation costs included? |
| Opening inventory | Does the estimate match the opening size, seasonality, and supplier rules? |
| Training and travel | Are owner, manager, employee, lodging, and travel costs included? |
| Insurance and permits | Are local permits, licenses, and insurance deposits realistic? |
| Opening advertising | Is the spend mandatory, discretionary, or payable to a franchisor-controlled fund? |
| Professional fees | Does the estimate include attorney, accountant, entity, lease, and lender review costs? |
| Additional funds | Does working capital cover ramp-up, payroll, rent, debt service, and slow sales? |
The Buyer Mistake: Underwriting the Low End
A buyer may anchor on the low end of the Item 7 range because it produces a more attractive return model. The disclosed low end is an estimate, not proof that it fits the buyer's site and operating plan.
The low end may assume:
- A cheaper market.
- A favorable lease.
- Limited buildout.
- Lower labor and contractor costs.
- A faster opening timeline.
- Lower professional fees.
- Less working capital.
- No meaningful delay.
If your actual lease, market, lender, or buildout plan does not match those assumptions, the low end is not your base case. Choose base, upside, and downside cases from buyer-specific evidence. A midpoint, high end, or added contingency is not a federal underwriting rule. Document why each input fits the site, market, lender, construction plan, and opening schedule.
How To Verify Item 7 Before Buying
1. Rebuild the table in your own model
Do not copy Item 7 as one number. Rebuild each line item in a spreadsheet and add source notes:
- FDD range.
- Franchisor estimate.
- Franchisee validation call.
- Contractor or vendor quote.
- Lease-specific estimate.
- Lender reserve requirement.
- Your downside assumption.
This turns Item 7 into a diligence file instead of a sales estimate.
2. Tie Item 7 to the lease
Commercial lease terms can move Item 7 more than the franchise fee. Tenant improvement allowance, delivery condition, HVAC responsibility, signage rights, permit timing, personal guaranty, use restrictions, and assignment language all affect opening cost and financing risk.
If you have a site, review the commercial lease before relying on Item 7.
3. Test working capital hard
The "additional funds" line requires buyer-specific testing. Ask whether it covers payroll, rent, utilities, insurance, supplier purchases, debt service, manager hiring, local marketing, and owner draw during ramp-up.
Questions to ask current franchisees:
- How close was your actual opening cost to Item 7?
- Which line item was most wrong?
- How much working capital did you wish you had?
- Did the franchisor update estimates after supply, labor, or rent changes?
4. Compare Item 7 to Item 19
Item 7 tells you cash needed. FDD Item 19 may tell you some financial performance information, if the franchisor chooses to make a claim. Read them together.
If Item 19 is revenue-only, Item 7 becomes more important because the buyer has to model margin, debt service, owner pay, and return on invested capital without franchisor-provided profit data.
If the franchise deal is structured as an asset purchase, review Item 7 alongside the APA indemnification benchmark so cost-estimate gaps, schedule exceptions, and post-close recovery rights are tested together.
FDD Item 7 Red Flags
| Red flag | Why it matters |
|---|---|
| Very wide investment range | The buyer may be taking market or site risk that is not explained. |
| Low working-capital line | Ramp-up cash may be understated. |
| Buildout estimate not tied to site type | The range may not fit your actual lease or market. |
| Professional fees look too low | Attorney, accountant, lender, entity, and lease costs can be material. |
| Required suppliers control major line items | Buyer may have limited price-shopping ability. |
| Item 7 conflicts with franchisee calls | Actual operators may be seeing a different cost reality. |
| No clear high-end return case | The deal may only work if everything goes right. |
How Inkvex Helps Franchise Buyers Review Item 7
FDD Scan and Deal Pack help franchise buyers turn Item 7 into a structured diligence memo. Findings may include estimated-investment categories, working-capital questions, lease-cost exposure, Item 19 links, Item 20 validation questions, and issues for attorney review.
For the broader workflow, use the FDD review checklist, FDD red flags, and franchise due diligence checklist.
Inkvex provides legal information, not legal, financial, or investment advice. Verify the current FDD and buyer-specific model with qualified advisers.
Go deeper
Read the guide, then move into the real workflow, pricing, audience page, and glossary that support the next decision.
Got a contract to review?
Upload it for a first-pass contract review. The normal processing target is under 3 minutes. Large, scanned, or unusually dense files can take longer. Free Trial available.
Related Articles
This article is for informational purposes only and does not constitute legal advice. For high-stakes agreements, consult a qualified attorney.