FDD Analysis 2025 FDD

Pause 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 Pause's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Pause 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: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$880,600 - $1,534,900
Franchise Fee$60,000

Investment Breakdown

Initial Franchise Fee$60,000 - $60,000
Leasehold Improvements$410,000 - $670,000
Project Management, Architecture & Engineering$45,000 - $55,000
Equipment$170,000 - $382,000
Furniture and Fixtures$20,000 - $25,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee7% of gross sales
Marketing/Advertising Fee1% of gross sales

Other Ongoing Fees

Authorized Care Provider FeeVaries
PromotionsVaries
Technology FeeVaries
Audit FeeVaries
InterestVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$1,569,015/year
Disclosure Year2025
Reporting Units
Revenue VarianceModerate variance (typical spread)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

8

Total Units

+3

Net Growth (YoY)

+60.0%

Growth Rate

Franchised Units3
Company-Owned Units5

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

No material litigation disclosed in Item 3.

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.

Related Resources

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