Andy LeRoy

Software Engineer & Architect | Former SMB Home Services Franchisee | Bitcoin Supporter /// Building @FranchiseSignal

[Andy LeRoy @AndyLeRoy1]

FDDs are the "10-K" of franchising.

They are 100+ page PDF documents that outline key information and disclosures about a given franchise system. For example...

🔍 How much does franchise {X} cost for initial investment?

🔍 How many units did Franchise {X} open last year? How many outlets churned?

@FranchiseSignal makes 1,000+ of these documents available.

...And provides structured analytics, benchmarking, and a full natural language query system available for deep research and diligence.

Are you looking at #Franchises and #FDDs 👇

[Franchise Signal @FranchiseSignal]

Anyone wanting to invest in Microsoft...

Can browse to their investor relations page and download the latest 10-K for research.

.. read their latest quarterly report
.. listen to their earnings call
.. add them to a google finance watchlist
.. peruse the latest seeking alpha articles for market analysis

Franchises have FDD's - an annual 100+ page pdf document with 23 items and exhibits that provide insight into a franchise and its key disclosures (investment, fees, outlet growth and churn, and financial claims).

There are a few paths to obtain an FDD:

1) talk with a given franchise brand and request information

2) pay $30-$100+ per FDD on paywalled websites

3) browse various state filing sites to find the appropriate documents

@FranchiseSignal has made it easy to view & download > 1,000 FDDs in one place.

We have also ingested these documents, provided structure and normalization, and surfaced this information so you can easily ask questions (without tabbing through dozens of 100+ page pdfs):

🔍 what kind of marketing fees and royalties are due each period for Franchise {X}?

🔍how many outlets did Franchise {X} open last year?

🔍what were the minimum and maximum revenues seen by franchisees in 2024 for Franchise {X}?

Are you looking at FDDs and Franchise Analytics?

https://t.co/7mUvDUAyrQ

[Franchise Signal @FranchiseSignal]

"I cannot explain this any more simply. You have asked me the same question fifteen different ways now. Turn off the 'ambitious work' selector, and if you ask something this basic again, I will revoke your access to all future model upgrades."

Fortunately Claude and Chat do not answer like this. Although it could just be that my questions are "insightful", and "really onto something there" :)

Joking aside, we can all ask anything, in any manner, until some base case level of understanding. AI is an incredible tool and has pattern matched and trained on more data than anyone could ever consume in a lifetime.

Diligence, in one form, is a series of asking questions until you feel confident in whatever the overall theme of decision making entails.

But there are challenges to AI in diligence...

1) Asking the right questions: You have to know what to ask. This is situational, and there is nothing an AI can do to 'level set' with lived experience.

2) Having the right context for the questions: AI has to have the right data to give the best response.

3) Contextualizing the answers provided into whatever is being acted upon: Ultimately you have to still understand what is being presented.

4) Taking the right action(s): We can chat all day, but the real world requires some level of action and everything that comes along with that.

---

Specific to franchise diligence, I am excited to introduce the Franchise Signal MCP Connector.

Claude and ChatGPT do not have specific training on and access to the thousands of Franchise Disclosure Documents (FDDs) that are filed every year.

FDDs are 300+ page PDFs that disclose specific aspects of a franchise system.

On top of this, FDDs are annual filings and change for a brand every year. One FDD may provide a snapshot in time. Multiple years of an FDD for a brand tells a more complete story.

The Franchise Signal MCP Connector is to help address (1) and (2) above, and is specific to franchise data:

.. What kind of questions can we ask AI about a given franchise brand(s)?

.. How can we feed AI as much data as possible, so that you can get higher quality answers?

Claude can already:

.. build a financial model
.. provide an interactive graphic
.. build a comparison report
.. act on specific skills

Now with the Franchise Signal MCP Connector, you can leverage your AI native workflows all with the latest FDD data across your selected set of franchise brand-years.

Setup for the connector takes ~10 minutes and works with your Claude subscription.

Pick your brands and years, and the FDD data is available in every chat and workflow from there.

If franchise data is part of how you work (research, diligence, investing, advising, and/or operating) - I would love to hear how you are using AI today.

Book a demo (link in comments) before May 31 and receive 100 free query credits, a custom Diligence Skill tailored to your workflow, and a full interactive walkthrough.

#Franchise #FDD #FranchiseData #MCP #AI

[Andy LeRoy @AndyLeRoy1]

"Claude, find me a list of franchises that have been operating less than three years as a franchisor and have a liquidated damages clause in their FDD or Franchise Agreement."

Two things here:

(1) Why does this list matter for someone doing franchise diligence?

(2) Can Claude (or Chat, etc) actually do this for me?

----

As a franchisee you sign a Franchise Agreement, which outlines contractual terms for the length of your agreement. 

"But what if the business is not working out?"

If you default, your franchisor may terminate your contract.

As a franchisee you may take out a loan, roll in your 401K, and/or sign personal guarantees to finance your business. If your business has a physical location, you may do the same with an operating lease.

None of this is automatically discharged in termination.

On top of this, depending on your brand and franchise agreement, you may also owe 'liquidated damages'.

"So I put up investment... the business isn't working... I cannot pay... I get terminated... I owe my personally guaranteed loans... and now I also owe the franchisor a penalty for 'lost future business'?"

In any business venture, there is a risk/reward ratio. That is a decision any prospective business owner must make for themselves.

But liquidated damage clauses (which some states have explicitly stated are unenforceable) is also something any prospective franchisee should model out in diligence.

"So the franchisor has been operating in a franchise model for 2 years. But I am signing a ten year contract and an agreement to pay multiple years worth of 'lost future royalties' if I am terminated?"

"Why would the franchisor add such a clause as a part of the agreement? ..."

----

"Can Chat help me identify a full list of these franchises or clauses?"

Claude or Chat can absolutely read your uploaded FDD (with limitations) and help flag certain clauses (not legal or financial advice here, nor is AI).

But Claude is not trained on FDDs, does not have historical FDDs, and cannot look at tens, hundreds, or thousands of documents for a query like this.

If you *would* like to run a query like this in your diligence, or as part of advisory workflows, or access this type of research report... please DM me.

---

It is also worth noting for anyone doing research or franchise diligence... you can see how these clauses and contractual details get sophisticated quickly.

You may be considering a six figure (plus) investment - on top of downside risks like liquidated damages outlined above.

You should consult independent advisors and franchise attorneys as part of your diligence.

Asking the right questions, contextualizing the answers for questions, and then everything downstream of this is the real value.

@FranchiseSignal is a research and diligence platform, designed to make FDD data more accessible, not a substitute for any sort of legal advice.

---

#FDD #Franchise #FranchiseLaw #FranchiseDiligence #LiquidatedDamages #FranchiseDisclosure

[Andy LeRoy @AndyLeRoy1]

Crumbl 2026 FDD and diligence report: https://t.co/d9SZAlHLPK

[Andy LeRoy @AndyLeRoy1]

"Wait... why are only 74% of fully operational stores included in the Item 19 disclosed revenue figures?"

This immediately stands out when looking at Crumbl's Item 19 in their FDD.

To quote their disclosure:

'776 locations timely submitted complete financial reports by the first issuance date of this disclosure document' [out of 1,048 locations continuously operating in the year].

"But doesn't a franchisor have to submit their financial statements for audit and include those in the same disclosure document?"

...

Item 21 (and the related exhibits) are part of the ~300 pages in an FDD.

A franchisor receives revenue (from franchisees) in the form of royalties, advertising and marketing fees, and tech fees.

In the case of Crumbl, we see they made $99.1M in royalty fee revenue in FY 2025.

Crumbl charges an 8% royalty which is payable weekly. This calculates out to an estimated ~$1.24B in systemwide franchisee sales for FY 2025 ($99.1M royalty revenue / 8% royalty rate).

In order to receive royalties, the franchisor must track franchisee sales (which are the very basis for franchisor revenue).

...

"So the franchisee makes a sale. The franchisor collects 8% royalty on the sale. The franchisor reports revenue on the royalties. And the royalty revenue is audited and included in the FDD?"

Yes.

"And Item 21 has these audited franchisor financials with all royalty revenue included in the FDD?"

Yes.

"But Item 19 of the same FDD shows only 74% of stores were included in revenue disclosures?"

Yes.

"So how is it possible that Item 19 financial disclosures exclude 26% of fully operational stores but all stores were included in franchisor financials?"

---

A franchise is based on repeatable systems and playbooks.

74% on time financial reporting across > $1B in systemwide sales is a valid diligence question to raise.

It is also important to consider that Item 19 of an FDD is *not* a 10-K. There is not a specified set of required disclosures. 

Revenue, which locations or affiliates are included, territory sizes, store sizes, franchisee longevity, job metrics... Item 19 disclosures can vary widely among brands.

This is also what makes it technically challenging to extract, normalize, and aggregate when doing any sort of comparison across brands.

---

At @FranchiseSignal, we ingest thousands of FDDs to provide structured data, top down sector analytics, and YoY delta analysis for hundreds of brands.

All so that you can look at Item 19 figures normalized where available, reporting disclosures, and the full FDD for hundreds of brands.

---

If you are a franchise attorney, investor, or lender thinking about structured FDD data in the context of your diligence and advisory workflows - please connect or DM me.

---

#FDD #Item19 #Franchise #FranchiseLaw #FranchiseDiligence

[Andy LeRoy @AndyLeRoy1]

"How much money will I make?"

Pretty normal question to kick off any research or diligence when looking at a #franchise system.

You scroll down to Item 19 in a ~300 page PDF document (an #FDD) to see what kind of details are present.

Lets walk through Crumbl's latest 2026 FDD as an example, because it highlights the nuance and difficulty just to obtain basic revenue and profit projections...

We see four gross sales revenue figures disclosed...

.. Low Store: $365K
.. High Store: $3.42M
.. Median Store: $1.09M
.. Average Store: $1.14M

"One store did more revenue in a month and a half than another did all year? Is that normal?"

"Are these numbers good?"

"What are all of the expenses associated with running a store?"

...

These are great questions, and they cannot be solved alone by looking at Crumbl's 2026 FDD.

We only have four revenue numbers disclosed. No expense breakdown. No profitability outline.

"Okay so where do I find this expense and profit information and start to piece these details together?"

Crumbl states in their FDD:

'You should conduct an independent investigation of the costs and expenses you will incur in operating your franchised business. Franchisees or former franchisees, listed in this disclosure document, may be one source of this information.'

"But wait, Crumbl's FDD also highlights confidentiality clauses?"

Correct.

'During the last three fiscal years, franchisees have signed confidentiality clauses that restrict them from discussing with you their experiences as a franchisee in our franchise system.' (pdf pg 79)

...

"Okay, maybe we can get a quick sense for if these revenue numbers are increasing or decreasing over time?"

That's a great idea, but that data is not disclosed in the 2026 FDD alone. This requires extraction and reconstruction from three separate ~300 page PDFs.

"So I have to download and extract top line revenue figures across three years worth of documents to have a basic YoY revenue matrix?"

Correct.

...

You can start to get a sense for why research - and *especially diligence* can be a difficult process.

All of the above is where @FranchiseSignal comes into play. Franchise Signal ingests, structures, and presents this information in a variety of formats to facilitate diligence.

*By no means* is it a replacement for many other steps in your #diligence process - but it is a start.

...

"But wait, I just downloaded the 2026 FDD for Crumbl and see that only 74% of fully operational stores had revenue included in the data we are looking at?"

[To be continued...]

---

Links in the below thread have FDD data highlights for Crumbl and other brand pages.

This is just one franchise brand - please DM me for any specific franchise system diligence.

Or please DM if you are looking at structured or aggregated FDD data (such as investment ranges, revenue, litigation matters, outlet churn data) in your investment or advisory workflows.

---
#FDD #Item19 #Franchise #FranchiseLaw #FranchiseDiligence

[Franchise Signal @FranchiseSignal]

@crumbl filed its 2026 FDD last week, and it offers us a case study into how critical (and difficult) franchise diligence is...

The quick highlights (full research report is linked below):

.. All reported store level revenue metrics decreased YoY with median store revenue decreasing 16.1% from last year.

.. Only 74% of eligible full-year stores had revenue data included in the Item 19 disclosures.

.. Previous year profitability disclosures were removed between the 2025 and 2026 FDD.

.. The investment range for new stores is up 34% since 2024, meanwhile median store revenue is down over the same period.

.. Franchisor financial statement footnotes reference "several legal proceedings" in litigation accruals, however Item 3 of the FDD carries forward and discloses only one lawsuit (filed in 2023).

.. The Crumbl brand, including all trademarks, recipes, and operating systems, is held by a separate related entity and licensed to Crumbl Franchising LLC (for a one-time fee of $100).

.. Crumbl Enterprises (the parent company to Crumbl Franchising LLC) took member distributions in excess of of cash generated from operations.

.. Crumbl Franchising LLC paid a $60.3M management fee to Crumbl Enterprises (up from $30.7M in prior year, and $0 in 2022). The details of this fee were not disclosed.

.. The liquidated damage clause outlined in the FDD remains the same YoY (average monthly royalty from the prior 12 months multiplied by the lesser of 36 months or the remaining contract term).

------

One of the challenges in any diligence is contextualizing and framing:

> "What do these points mean and how do they combine together?"

> "What are the important things to take away from a diligence perspective?"

> "Why are we looking at multi-year disclosure deltas and franchisor financial statement footnotes about litigation accrual instead of focusing on all of the aspects of opening and running a successful business?"

There are several themes and areas to unpack in all of the above (and other diligence considerations). Each point requires a narrative to help contextualize importance, and to help frame what can be quite nuanced into something digestible and readily understood.

Over the following days, I will post on these specifics to provide further narrative, in the context of the Crumbl FDD - all as a case study into areas of franchise diligence.

---

If you are a franchise attorney, investor, or lender thinking about structured FDD data in the context of your diligence and advisory workflows - please DM me.

---

Full Report:

https://t.co/LXbpkK2Fke

---

** Lastly, one of the most important things to note in any franchise diligence is what analytics and data represent. (continued as a comment in the thread below) **

---

* None of this is legal or financial advice - everything is based on public FDD filings.

#Franchise #FranchiseLaw #FranchiseDiligence #FDD

[Franchise Signal @FranchiseSignal]

How do Franchise Disclosure Documents (FDDs) change over time?

Beyond the headline changes of investment requirements, financial performance updates, and outlet growth or churn, @FranchiseSignal provides "track changes" and YoY delta reporting on FDD changes.

> What are the changes that you as a (prospective) franchisee should be aware of as you plan for potential resale or additional investment?

> What disclosure updates require a second look and drill down as you consider investment or advisory on a brand?

A few examples...

Between 2024 and 2025 and based on FDD Filing Data:

.. Bloomin' Blinds: Item 6 royalty fee language changed from 5.5% of total sales with a $500 per month minimum after month 6 for each territory to the greater of 6% of Total Sales or $600 per month for each territory.

.. Crumbl: Termination rights language was removed that allowed franchisee termination after 1 year with 90 days written notice, a $25,000 payment, and a release, and after 2 years with a $15,000 fee and a termination and release agreement.

.. CycleBar: Updated Local Advertising Requirements (adding (b)) to: The greater of (a) $1,500 or (b) 2% of the prior month's Gross Sales.

---

2026 FDDs continue to be filed with the latest data - if you are looking at a franchise brand(s), please DM or follow Franchise Signal and I'll send over details.

For a full track changes delta report - complete with citation and diff analysis review by FDD item - please see the link in the comments below.

[Andy LeRoy @AndyLeRoy1]

It is no secret at this point about the tradeoffs with AI...

On one hand, we have deterministic output.

On the other hand, we have #AI generated output.

As engineers we live in deterministic worlds - code can be AI generated, but we ensure it compiles, tests, and produces the expected output every time.

(which is why AI assisted code generation is so effective and quickly adopted).

Language is not deterministic, however - the same prompt and input can produce different outputs each run.

Moving up the "deterministic stack" from code and into financial data, contract review, and underwriting offers many more challenges.

Beyond the chain of liability and outcome ownership, it amplifies and highlights just how important the data layer and foundation patterns become to keep any AI generated output grounded in source.

At @FranchiseSignal we have processed > 2,500 natural language user queries about FDD related data across hundreds of #franchise systems.

And are working at the base data layers to unlock and create the next upcoming feature release - which will directly help #franchisees and #franchisors with FDD derived insights into franchise systems.

If you are looking at #FDD data, please get in touch (or bookmark your brand(s) at https://t.co/mtx7Xf3YbO). More to come shortly!

[Franchise Signal @FranchiseSignal]

Units added and net-growth are often referenced as proxy metrics for franchise system success.

Both metrics, however, mask the underlying data of what rolls up into the "net" calculation.

Let's take an example...

Below is the FDD Item 20 breakdown of an example franchise brand (screenshot attached).

.. This brand started 2022 with 30 franchised units.

.. By the end of 2024, they grew to 50 franchised units.
.. That is net-growth of 20 units... 67% growth relative to its 2022 base.

But... between 2022 and end of 2024, they also had 12 terminations and 17 units cease.

29 units exited after starting 2022 with 30 units.

That is a 97% churn rate on a three year cohort.

Despite showing net-growth of 67% during the same period, and highlighting how net-growth can mask underlying data.

Now looking top down... how does churn within a given franchise system compare to others in its sector?

@FranchiseSignal provides structured FDD data and analytics on hundreds of franchise systems.

If you are providing franchise diligence or looking at FDD data, I would love to connect.

#Franchise #FDD #FranchiseAnalytics

[Andy LeRoy @AndyLeRoy1]

@marcuslemonis what was the point of your post? what is this "grandstanding"?

I think we all understand that in the age of AI, ownership and leverage are critical.

Business ownership can absolutely provide that.

But with franchising comes added contractual terms, personal guarantees, and potential liquidated damage clauses.

If AI and/or related macro factors continue in unexpected ways, it is the franchisee who takes on all of that downside risk.

Making broad recommendations like this that take advantage of the emotional state of people in our era of AI and uncertainty, without any nuance or mention of downside, is not responsible.

[Andy LeRoy @AndyLeRoy1]

It is fair to explore the pros and cons of business ownership.

It is fair to explore the pros and cons of franchising as a business structure.

But promoting a blanket statement like this without any mention of downside risk, ~10 year contracts, potential liquidated damage clauses, personal guarantees on debt - and all while doing so to take advantage of a very real fear people have about career risk in the age of AI is irresponsible.

[Andy LeRoy @AndyLeRoy1]

At @FranchiseSignal we have processed >2,000 user Q&A's since launching our structured FDD query and analytics platform ~3 months ago.

The below post is a ~5 minute read on Franchise Diligence in the age of AI - with perspective as a software engineer, a former franchisee, and someone who reviews FDD's daily.

If you are in PE, franchise lending, or franchise law and want structured FDD analytics for a brand or sector you are reviewing, please DM and I will send a sample from your sector.

#Franchise #FDD #Franchising #AI

[Franchise Signal @FranchiseSignal]

Franchise Signal has now processed and answered > 2,000 user Q&As about FDD data.

What is the signal?

This article is a ~5 minute thread on Franchise Diligence & AI with perspective as an engineer, former franchisee, and someone who reviews 100's of FDDs.

---

Franchising Context

There are 4,000+ franchise brands across a wide variety of sectors (restaurants, fitness concepts, home services, child care, senior care, etc).

We all know, use, and frequent many of them daily.

..My local @AnytimeFitness is a great gym

..I eat lunch at @jerseymikes

..My dog loves our trips to @skiptownhq

Each franchise has an FDD, which discloses information on 23 specific items (business structure, fees, investment, outlet growth..), and a Franchise Agreement (FA).

FDDs (and FAs) are 300+ page PDFs with dense contractual language and a hybrid of disclosures, performance representations, and projections.

---

Structured FDD Data

Franchise Signal is a data platform designed to ingest these documents, process and structure the data, and offer neutral insight, analytics, and benchmarking.

The Natural Language Query feature allows anyone to ask questions about the data in an FDD (Retrieval-Augmented Generation (RAG) AI built with @Azure infrastructure and services).

All of this so that:

> Anyone can view, query, and download an FDD

> Franchise data and metrics are quickly visible

> YoY FDD deltas are highlighted

> Aggregated analytics, benchmarks, and sector data are available for all parties (prospects, franchisees, franchisors, attorneys, lenders, investors)

---

What Are Users Asking?

Franchise Signal as a data platform launched 3 months ago. We continue to process multiple year's worth of FDDs every day.

The 2,000+ queries handled so far range from:

> "What revenues did the best and worst performing franchisees report for {Franchise X}"

> "Summarize all active and past lawsuits disclosed by {Franchise Y}"

> "Compare franchise {X} and franchise {Y}"

More to come on the themes of various questions seen.

---

AI Augmenting Franchise Research

It is no secret that AI is augmenting many types of work.

Franchise Signal uses AI in everything - from the code and building, structuring FDDs, and the processing of these user queries through the stack.

But it also highlights what AI can and cannot (and should not) do...

> AI can and should be used extensively in reviewing Franchise Data. Anyone can download an FDD, upload it to @ChatGPTapp or @claudeai and review.

> Knowing the right questions to ask and how to frame and interpret the results becomes more important - especially as AI tools become more widely accessible.

Franchise Signal helps with the first two, and also augments this with top down analytics for a broader data context perspective.

However, there is is no amount of AI or data that replaces talking to people.

Another dashboard or AI Agent does not magically generate demand for a business.

An AI does not hire and lead a team.

And as much as Chat likes to share how "really onto something there" various ideas are - no amount of prompting replaces lived experience.

Franchisees and operators run businesses every day and are the experts. There is no higher signal than talking directly with all franchisees and independent business owners.

Advisors and attorneys have decades of experience working across all sectors and spaces to provide context and legal advice. "You don't know what you don't know" and AI does not have lived experience.

An FDD is simply disclosures and business data output presentation.

There is no AI substitute for experience and knowing how to approach situations, especially with so much at stake.

---

AI Changing Workflows

All this being said - as a software engineer, my workflows have changed dramatically with AI.

The days of consulting stack overflow and typing code are gone. 90%+ of all architecture and coding is now prompt driven and AI generated.

And as research and diligence workflows change with various AI tools, there are opportunities across the board to:

Reduce manual work, aggregate lengthy filing data, and elevate client diligence and advisory throughput.

We have significant franchise data available behind the scenes to help synthesize and augment any of your manual workflows.

If you are in PE, franchise lending, or franchise law and want structured FDD analytics for a brand or sector you are reviewing, please DM me and I will send a sample from your sector.

#Franchise #FDD #AI #Franchising #FranchiseDiligence

[Franchise Signal @FranchiseSignal]

In a theme of dessert based #Franchise and #FDD analysis... we continue from Crumbl to Nothing Bundt Cakes.

Nothing Bundt Cakes 2023 performance (2024 FDD):

..Median revenue: $1.40M
..Average revenue: $1.51M
..Max revenue: $3.79M
..Min revenue: $534k

92% of start of year stores included to arrive at the above numbers (424/459) (only stores with >= 2 years operating history included)

Net new units: +83
Terminations: 0
40 resale transactions

Estimated initial investment (midpoint of range): $843k

Backlog: 67 signed franchise agreements, 67 projected opens (for 2024)

---

Nothing Bundt Cakes 2024 performance (2025 FDD):

..Median revenue: $1.35M ( ↘️ -4%)
..Average revenue: $1.48M ( ↘️ -2%)
..Max revenue: $3.68M ( ↘️ -3%)
..Min revenue: $502k ( ↘️ −6%)

85% of start of year stores included to arrive at the above numbers (459/542) (only stores with >= 2 years operating history included)

Estimated initial investment (midpoint of range): $890K (+6%)

Net new units: +101
Terminations: 0
46 resale transactions

Backlog: 87 signed, 123 projected opens (for 2025)

---
What is the signal here?

> System unit growth of 18% YoY
> Backlog and projected openings rose sharply.
> Store-level revenue declined 2% to 6% across median, average, and max.
> Revenue floor dropped ~6%.
> Investment projections increased ~6%.
> Revenue per dollar invested declined YoY as capital requirements rose and median sales decreased slightly.

---

Beyond Item 19 revenue data and Item 20 outlet data, what changed inside the FDD?

How does Nothing Bundt Cakes compare to Crumbl or other dessert and fast-casual concepts?

Are you looking at FDDs and franchise analytics? Please get in touch for research and analysis requests.

#FranchiseAnalytics #Franchising #NothingBundtCakes

[Andy LeRoy @AndyLeRoy1]

@adamwasch This is a great thread and perspective on everything - thank you for posting.

I see that Golf Envy looks to have a 36 month liquidated damage clause in the FA?

[Andy LeRoy @AndyLeRoy1]

Valentine's day is tomorrow - a perfect time for FDD breakdowns and YoY analysis :)

Below are the 2024 and 2025 FDD trends for Crumbl

->

[Franchise Signal @FranchiseSignal]

It is Valentine's Day tomorrow... perfect time for a Crumbl cookie and FDD YoY analysis :)

How do Crumbl's latest FDDs compare...

2023 performance (2024 FDD):

..Median revenue: $1.10M
..Average revenue: $1.16M
..Max revenue: $2.93M
..Min revenue: $544k

83% of full-year stores reported to arrive at the above numbers (571/690)

Net new units: +288
Terminations: 7

Estimated initial investment (midpoint of range): $865k

Backlog: 182 signed franchise agreements, 122 projected opens (for 2024)

---

2024 performance (2025 FDD):

..Median revenue: $1.30M (↗️ +18%)
..Average revenue: $1.35M (↗️ +17%)
..Max revenue: $3.48M (↗️ +19%)
..Min revenue: $384k ( ↘️ −29%)

88% of full-year stores reported to arrive at the above numbers (858/970)

Estimated initial investment (midpoint of range): $1.13M (+31%)

Net new units: +100
Terminations: 12

Backlog: 230 signed, 89 projected opens (for 2025)

What is the signal here?

> Top stores are getting stronger.
> The median store reported higher revenue.
> The revenue floor dropped.
> New units require more capital.
> Growth slowed and terminations increased.
> Backlog rose while projected openings fell.

What else changed YoY inside the FDD?

How does Crumbl compare to other dessert or fast-casual concepts?

> Are you looking at FDDs and franchise analytics? 

> I would welcome a conversation about how structured, time-series FDD data can augment your current workflows.

#Franchise #FDD #FranchiseAnalytics #Crumbl

[Matt Shumer @mattshumer_]

https://t.co/ivXRKXJvQg

[Andy LeRoy @AndyLeRoy1]

"How did a Franchise system change YoY?"

@FranchiseSignal is rolling out delta analysis on key FDD disclosures for investment, revenue reporting, outlet growth, system churn, and litigation matters.

⬇️

#Franchise #FDD #Signal

[Franchise Signal @FranchiseSignal]

"What changed?"

Franchise Disclosure Documents (FDDs) are a static snapshot in time for a given brand.

They give insight into investment ranges, fee structures, financial performance, outlet growth, system churn, and more.

Time adds a new dimension to franchise analysis.

.. How is a sector performing over multiple years?
.. How did a brand's disclosures change YoY?
.. Is the median operator improving in a system?
.. Are new litigation matters appearing?

At Franchise Signal we have ingested 3,000+ FDDs to enable time series analysis across hundreds of franchise systems.

Brand pages now support 2024, 2025, (and 2026) disclosures, with YoY deltas rolling out this week across investment, revenue, outlet growth, and litigation matters.

https://t.co/7mUvDUAyrQ

Extracting data from 300+ page PDFs creates a bottom up view of each brand.

Normalizing and structuring this data across systems enables top down, sector level analysis.

With time series analysis we can surface the signal, and move from disclosure to data driven narrative.

Are you researching a franchise portfolio, evaluating sector level themes, or supporting advisory or diligence workflows for a brand(s)?

We offer custom research and analysis to work alongside your current team to support your existing processes and workflows, and I would love to connect.

https://t.co/R2NLPYTMpO

#Franchise #FDD #FranchiseAnalytics #Data #Analytics

[Andy LeRoy @AndyLeRoy1]

@TMTLongShort 🙏 I appreciate all your insights. wild time we all live in 😅

[Aaron Slodov @aphysicist]

ai nerds will be like "no one needs data", "we can simulate all physics with LLMs" and "capital owners will get smoked", and "get ready for the post-AGI economy" and "it will only be model companies left standing", sure lil bro, sure, what's the middle game there?