AI Franchise Risk Intelligence

Find the red flags
before you sign.

You just received a 400-page FDD and 14 days to decide whether to invest your life savings. Our forensic AI engine scans all 23 required Items and delivers a plain-English risk verdict in 24 hours.

$3,000+
Franchise attorney
review cost
14 days
FTC-mandated
review window
400 pgs
Average FDD
document length
24 hrs
Our report
delivery time
risk_analysis.fdd — sample output
3 flags detected
Overall Risk Score
6.2/10
0 — Low 5 — Medium 10 — Critical
Item 03 Litigation History
⚑ Flagged
Item 19 Earnings Claims
⚑ Flagged
Item 12 Territory Rights
⚑ Flagged
Item 20 Franchisee Turnover
⚠ Warning
Item 21 Financial Statements
⚠ Warning
Item 17 Renewal Terms
✓ Clear
Scanning ▸
Item 03 — Litigation History Item 19 — Earnings Claims Item 12 — Territory Rights Item 20 — Franchisee Turnover Item 21 — Financial Statements Item 17 — Renewal & Exit Terms Item 04 — Bankruptcy History Item 07 — Estimated Initial Investment Item 09 — Franchisee Obligations Item 06 — Fees & Royalty Structure Item 03 — Litigation History Item 19 — Earnings Claims Item 12 — Territory Rights Item 20 — Franchisee Turnover Item 21 — Financial Statements Item 17 — Renewal & Exit Terms Item 04 — Bankruptcy History Item 07 — Estimated Initial Investment Item 09 — Franchisee Obligations Item 06 — Fees & Royalty Structure
The Problem

The deck is stacked against you.

Franchise brokers earn $20,000–$50,000 when you sign. Nobody in that transaction is paid to tell you no. We are.

42%
Of franchisees didn't fully understand what they signed

The franchisor's sales team is polished and on commission. Their job is to get you to sign. Your job is to know the risks first.

20%
Of new franchises fail within the first year

Most failures trace back to red flags buried in the FDD — in Item 20 turnover tables or hidden in Item 19 earnings omissions.

$150K+
Average total franchise investment at stake

You wouldn't buy a house without an inspection. This is your forensic inspection — in 24 hours, for less than 0.3% of your commitment.

How It Works

Three steps to clarity.

Submit your FDD, our forensic AI scans it, you get a plain-English risk verdict with the exact questions to ask before you sign.

01
// submit

Upload your FDD

Securely submit your Franchise Disclosure Document through our encrypted intake form. Any format — digital PDF or scanned copy.

02
// analyze

Forensic AI analysis

Our engine processes all 23 FDD Items, cross-referencing known failure patterns, litigation flags, and franchisee attrition data.

03
// deliver

Risk Report delivered

Within 24 hours you receive a plain-English PDF with your risk score, flagged Items, and the 10 questions to ask your franchisor.

Risk Analysis

What gets flagged.

All 23 required FDD Items are analyzed. These carry the highest weight in our risk scoring model.

Item Severity What We Detect
Item 03 Critical Litigation HistoryPatterns of franchisee-initiated suits, regulatory actions, and undisclosed settlements. A single suit is noise — a pattern is a signal.
Item 19 Critical Financial Performance RepresentationsWhat the franchisor discloses about earnings — and what they omit. Most FDDs show only top-quartile earners. We surface what the data actually says.
Item 12 Critical Territory & ExclusivityEncroachment clauses, territory carve-outs, and company-store exceptions. The most commonly misunderstood risk in franchising.
Item 20 High Risk Outlet Transfers & TurnoverHow many franchisees exited last year — and whether they chose to leave or were terminated. This table tells the real story.
Item 21 High Risk Franchisor Financial StatementsIs this a growing system or a franchisor kept alive by new franchise fees with declining royalty income? The audited statements answer this.
Item 17 High Risk Renewal, Termination & TransferOn what grounds can the franchisor terminate you and take your built business? Most buyers never read this item. We read it for you.
Items 01–23 Full Scan All 23 Remaining ItemsBankruptcy history, fee structures, supplier restrictions, training obligations, IP rights, and 15 additional disclosure Items — all scored and flagged.
Sample Output

What you receive.

FranchiseDealBreaker — Red Flag Report
High Risk
Risk Score
6.2/10
Pattern of franchisee litigation, Item 19 discloses top-quartile only, territory clause permits encroachment within 5 miles.
Item 03 — Litigation
Item 04 — Bankruptcy
Item 12 — Territory
Item 19 — Earnings Claims
Item 20 — Turnover
Item 21 — Financials
Item 17 — Renewal Terms

Everything in plain English. In 24 hours.

Your Full Red Flag Report covers all 23 FDD Items with a risk score, per-item findings, and the exact questions to ask your franchisor before signing anything.

  • All 23 Items analyzed and scored
  • Red/Amber/Green rating per item
  • Plain-English explanation of every flag
  • 10 questions to ask before signing
  • One-page executive summary
  • Full PDF in your inbox within 24 hours
Get My Report — $497 →
Free Intelligence Database

500+ franchise profiles.

Every profile includes a free risk overview, Item 19 summary, and litigation history. No account required.

// franchise_database
showing 8 of 500+ records
View All →
Franchise Investment Range Category Risk
Subway
Food & Beverage
$116K – $263K Food & Bev High View →
9Round
Fitness
$83K – $128K Fitness High View →
Orangetheory Fitness
Fitness
$563K – $999K Fitness Medium View →
Jamba Juice
Food & Beverage
$238K – $485K Food & Bev Medium View →
Smoothie King
Food & Beverage
$263K – $843K Food & Bev Medium View →
Anytime Fitness
Fitness
$78K – $521K Fitness Low View →
Sport Clips
Personal Services
$203K – $375K Services Low View →
The UPS Store
Business Services
$138K – $470K Services Low View →
Pricing

Less than 0.3% of your investment.

Choose your analysis depth. Both reports are encrypted, confidential, and delivered within the promised window.

// quick_scan
$97

Top-line scan of the 5 critical items. Ideal gut-check before committing to a full analysis.

  • Items 3, 12, 19, 20, 21 analyzed
  • Risk score with plain-English verdict
  • Delivered within 12 hours
  • Encrypted PDF report
Order Quick Scan →
// not_legal_advice — FranchiseDealBreaker provides AI-powered document analysis for informational purposes only. Reports are not a substitute for advice from a qualified franchise attorney. We strongly recommend consulting licensed legal counsel before signing any franchise agreement or making any investment decision.
FAQ

Common questions.

No. FranchiseDealBreaker provides AI-powered document analysis — the same function as a financial data provider summarizing a 10-K. We help you understand what's in your FDD. For legal advice, consult a licensed franchise attorney.
Our engine is purpose-built for FDDs — calibrated on all 23 required Items and weighted against known franchisee failure patterns. A general AI will summarize. We flag, score, and tell you exactly which questions to ask before you sign.
Your FDD is processed over encrypted connections and never retained beyond the analysis window. We do not share, sell, or publish your document. Each submission is deleted after your report is delivered.
The Full Red Flag Report works on any FDD — including franchises not in our database. You upload your specific document and we analyze it from scratch. The free database is a separate resource built from publicly available FDDs.
Yes. Resale buyers receive a current FDD with the same 14-day review window. Renewal situations often involve materially updated agreements — our analysis applies equally and may be more critical in these cases.
Final Notice

Don't sign blind.

You have 14 days and one chance to get this right. Run the forensic analysis before you commit your life savings.