1
Franchisor, Parents, Predecessors & Affiliates
Recent ownership changes, shell-structure red flags
For Franchise Buyers
FDD Scan for Franchise Buyers in the 14-Day Review Window
Before you sign or pay, use the FTC review window to scan all 23 FDD items. Inkvex produces an attorney-ready first-pass, with target: under 3 minutes. Large, scanned, or unusually dense files can take longer. The review covers including Item 3 litigation, Item 17 transfer and termination traps, Item 19 earnings claims, and Item 20 outlet data. Key terms come back with an Executive Deal Verdict, a Cross-Reference Map, and Negotiation Points on every paid report. A Vs. Sector read comparing fees, investment, revenue, and outlet churn appears only when a verified applicable franchise corpus is available.
Not ready for the paid scan? Try the free FDD analyzer first.
Your Diligence Partner, From LOI to Close.
Hub resource map
Diligence pages that support this hub
Start from this hub, then move through the highest-signal pages in the same buyer workflow.
FDD review for franchise buyersResource
FDD ScanResource
franchise buyer diligenceResource
Item 19 earnings-claim reviewResource
franchise agreement reviewResource
commercial lease reviewResource
The FTC review window exists for a reason. In March 2026 the FTC ordered the largest franchisor redress in agency history against a fitness franchisor that misled buyers about opening timelines and FDD compliance. Inkvex surfaces those exact items, with jurisdiction citations, before you sign.
$17M
FTC redress, March 2026
1 in 10
SBA franchise loans default
23 items
the FTC requires
What ETA-style buyers miss in the 14-day review
Most franchise buyers read the FDD once, slowly, with no system. Inkvex reads it the way an M&A diligence team would. Here are three places the deal usually shifts after closing:
Item 7 startup costs that double
FTC enforcement in 2026 named buildouts that took 12+ months instead of the disclosed 6, with franchisees absorbing months of carrying cost. Inkvex flags Item 7 ranges that look tight and surfaces the assumptions behind them.
Item 12 territory that is not what it sounds like
Exclusive territory and protected territory mean different things. Inkvex reads the actual language, cites the FDD section, and notes when reserved rights, alternative channels, or franchisor-operated outlets are carved out.
Item 20 turnover the franchisor does not highlight
Closures, transfers, and non-renewals tell a story the franchisor will not put in marketing. Inkvex pulls Item 20 outlet history, calculates churn signals, and tells you which prior franchisees to call before signing.
What we scan, item by item
Every FDD follows the same 23-item framework mandated by the FTC. Inkvex reads every item and surfaces the specific traps buyers miss.
2
Business Experience
Executive turnover and experience gaps that predict operational drift
3
Litigation
Patterns of franchisee lawsuits vs routine litigation
4
Bankruptcy
Any bankruptcy history of the franchisor or its executives
5
Initial Fees
Hidden add-ons beyond the headline franchise fee
6
Other Fees
Royalty, tech, advertising, audit, and transfer fees stacked together
7
Estimated Initial Investment
Low-end vs high-end spread and working-capital assumptions
8
Restrictions on Sources of Products & Services
Required-vendor kickbacks that quietly inflate COGS
9
Franchisee's Obligations
Operational obligations that materially constrain the owner
10
Financing
Franchisor-offered financing terms vs market standard
11
Franchisor's Assistance, Advertising, Computer Systems, Training
What the franchisor actually provides vs marketing language
12
Territory
Protected territory definitions and encroachment risk
13
Trademarks
Ongoing disputes or limitations on the brand you are buying
14
Patents, Copyrights & Proprietary Information
IP ownership and confidentiality scope
15
Obligation to Participate in Operation
Absentee-ownership restrictions and passive-investor clauses
16
Restrictions on What Franchisee May Sell
Menu or product restrictions that cap revenue upside
17
Renewal, Termination, Transfer & Dispute Resolution
Termination triggers, transfer restrictions, renewal traps
18
Public Figures
Celebrity endorsements and how much you are paying for them
19
Financial Performance Representations
Averages vs medians distortion, unit-level failure rates
20
Outlets and Franchisee Information
Transfer, termination, and closure rates in the unit data
21
Financial Statements
Franchisor solvency warning signs
22
Contracts
Every agreement you will sign, flagged for buyer-hostile terms
23
Receipts
The FTC-mandated receipt clock and how it interacts with the 14-day review window
How it works
- 1Upload
Add the FDD PDF and any related franchise agreement or development document.
- 2Analyze
Inkvex reviews the 23-item structure and flags issues with source references where available. A Vs. Sector table compares key terms only when a verified applicable franchise corpus is available.
- 3Download
Export the report and Attorney-ready Diligence Memorandum (PDF), then forward them to your franchise attorney before the next call.
Attorney quote vs Inkvex
Published provider prices checked August 10, 2026. Scope differs and prices change, so confirm current fees with the provider. You still need a franchise attorney. Inkvex helps you arrive with the highest-priority items already surfaced.
FDD Scan FAQ
Is my FDD info kept private? Who else can see what I upload?
Uploads may use temporary storage. Cleanup runs after processing; paused document-lane choices may retain extracted text with a 30-minute expiry until continuation, cancellation, or the next access after expiry. What's saved if you sign in: the structured report (flagged items with quoted clauses) and the document type, for example "FDD" or "commercial lease", so we can see which document types are most useful and improve the product. The analysis provider processes the document under its default no-training policy. Inkvex does not sell your data or use your contract content to train AI systems. For full detail see /trust and /privacy.
Can I share the report with my franchise attorney?
Yes. The report and Attorney-ready Diligence Memorandum (PDF) are built to forward to counsel. They give your attorney a sourced issue list, quoted clauses, and follow-up questions so legal time starts narrower.
What about multi-unit or area development FDDs? Can you scan those?
Yes. Each $49 credit covers one document, so buy a credit for each of the FDD, franchise agreement, and area development agreement. The report flags development schedules, cross-default exposure, territory limits, and Item 17 consequences.
How does the report handle Item 19 earnings claims?
The scan separates the headline claim from the support behind it. It looks at sample size, averages versus medians, exclusions, company-owned versus franchisee-owned units, and whether the claim depends on assumptions a buyer should verify.
How does the report handle Item 20 outlet and franchisee data?
The report reads Item 20 tables for openings, closures, transfers, terminations, non-renewals, and franchisee contact data. If the table format blocks confident extraction, the report marks uncertainty and pushes that point to attorney follow-up.
What if I want a refund?
For your first paid purchase, request a refund within 14 days of the charge. Credit purchases: full refund if unused; otherwise, a proportional refund of unused credits. Successfully used credits are not refundable under the standard policy. Email support@inkvex.app. The credit refund equals the amount actually paid multiplied by unused credits divided by purchased credits. Refunded credits are removed. Failed analyses with restored credits do not count as use; contact support for a service failure or unusable output review. Completed reports remain accessible under the existing retention policy. Purchases made under our earlier full-refund terms keep those terms. If your first paid purchase is a Searcher Sub subscription, request a full refund within 14 days of the charge. Subscription renewals are not covered by this first-purchase offer. Cancel anytime to stop renewal; ordinary cancellation keeps access through the current billing period. After 14 days, payments are non-refundable except where applicable law requires otherwise.
How do I run this before my 14-day review window closes?
Upload the FDD as soon as you receive it. Send the report to your franchise attorney with enough time for independent review. Processing time varies with file size, scans, and complexity. If the franchisor sends revised documents, use another upload for the updated version.
Can I run multiple FDDs if I am comparing 2 or 3 brands?
Yes. A $49 Single Document Review covers one FDD with 12-month access, handling documents up to 300 pages. If you are comparing more brands or reviewing a broader acquisition stack, use /pricing to choose between Searcher Sub and Deal Pack.
Private uploads
Uploads may use temporary storage during processing. Inkvex attempts to remove the original file after processing and keeps the structured report, including quoted excerpts, on your account. A paused document-lane choice may retain extracted text in a cache with a 30-minute expiry; expiry prevents reuse but does not itself erase the row. The cache is removed when you continue, cancel, or next access an expired entry.
Attorney first-pass
Legal information, not legal advice. Built to help counsel start with surfaced issues.
14-day refund window
For your first paid purchase, request a refund within 14 days of the charge. Credit purchases: full refund if unused; otherwise, a proportional refund of unused credits. Successfully used credits are not refundable under the standard policy.
Run the scan before your franchise attorney call. Show up with a narrowed list.
Your Diligence Partner, From LOI to Close.
Inkvex provides legal information, not legal advice. Use this as a first-pass for your franchise attorney. The FTC review window gives franchise buyers time to review the FDD before signing or paying. Inkvex does not extend, pause, or replace any legal deadline.