FDD Analysis 2024 FDD

Our Town America Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Our Town America's FDD, including franchise costs (Item 7), ongoing fees (Item 6), and unit growth trends (Item 20).

What the Our Town America FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Not disclosed by this franchisor

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$64,399 - $87,709
Franchise Fee$47,500

Investment Breakdown

Initial Franchise Fee$47,500 - $47,500
Real Estate/Rent
Leasehold Improvements
Equipment and Supplies$600 - $4,460
Starter Kit$450 - $450

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee5% of gross sales
Marketing/Advertising Fee1% of gross sales

Other Ongoing Fees

Product PurchasesVaries
Additional Zip Code FeeVaries
Audit ExpensesVaries
Late FeesVaries
Trade Account Delinquency PaymentVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

No Item 19 Disclosure

Our Town America does not provide a Financial Performance Representation in their FDD. Franchisors are not required to disclose this information.

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

43

Total Units

-1

Net Growth (YoY)

-2.3%

Growth Rate

Franchised Units43
Company-Owned Units

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

No Revenue Disclosure

Without Item 19 data, you'll need to conduct your own due diligence on unit economics by speaking directly with existing franchisees.

Related Resources

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