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franchise-decoder

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Decode a franchise offering before you sign away a decade — the earnings claims and their absence, the territory that is not exclusive, the renewal terms that expire your equity, the mandatory-supplier margins, and the validation calls that reveal what the brochure will not. Use when asked to evaluate a franchise, review an FDD or franchise agreement, is this franchise a good deal, or what to ask existing franchisees. Produces a clause-by-clause decode organised by where the money leaks, the earnings-claim reality check, the validation-call script, and the walk-away list. Not legal or financial advice — a franchise lawyer reviews before any signature.

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# Franchise Decoder

A franchise sale runs on asymmetry: the franchisor has done this hundreds of times and wrote the documents; you will do it once and must live inside them for ten years. The disclosure paperwork — the FDD in the US, similar documents elsewhere — is long precisely because the answers are in there, buried where enthusiasm does not read. This decodes it by where the money actually leaks: the earnings representation that is carefully not a promise (or is carefully absent), the *protected* territory that protects less than it sounds, the renewal clause that means your exit value needs the franchisor's consent, and the supply chain where the real margin often lives. Then it scripts the calls that matter more than the document: current and *former* franchisees, asked questions the brochure cannot spin.

## What This Skill Produces

- **A clause-by-clause decode** — the key items classified: cost, control, exit, or leak, each with what the phrasing is doing
- **The earnings reality check** — what the earnings claim actually asserts, its sample and survivorship problems, and what its *absence* signals
- **The all-in cost rebuild** — the investment range re-totalled with the lines brochures soften: working capital to breakeven, fees on gross not profit, refresh obligations
- **The validation-call script** — questions for current franchisees, former franchisees, and the awkward ones for the franchisor
- **The walk-away list** — the clauses that are red lines unless negotiated, and which ones franchisors actually negotiate

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