1
Franchisor, Parents, Predecessors & Affiliates
Recent ownership changes, shell-structure red flags
For Franchise Buyers
The 23-Item FDD Scan
Every Franchise Disclosure Document follows the same FTC-mandated 23-item structure. We scan all 23 in under 60 seconds, flagging Item 3 litigation patterns, decoding Item 19 earnings claims, surfacing the Item 17 traps franchisors never highlight. $249. Read it before you pay your franchise attorney $2,500.
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 your cooling-off period
Attorney quote vs Inkvex
You still need a franchise attorney. Inkvex makes their job faster, you arrive at the billable hour already knowing which 3 items to focus on.
How it works
- 1Upload your FDD PDF
Any format. We handle 150 to 300 page documents.
- 260-second analysis
Structured scan across all 23 FTC-mandated items.
- 3Download your report
PDF memo you can forward to your franchise attorney or business partner.
Run the scan before your attorney call. Show up with a narrowed list.
Inkvex is not a law firm and does not provide legal advice. The FDD Scan provides legal information to help you evaluate a franchise opportunity. Always consult a qualified franchise attorney before signing a franchise agreement. The 14-day FTC cooling-off period exists for a reason.