FDD Analysis 2024 FDD

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

What the Rytech 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$166,500 - $258,100
Franchise Fee$60,000

Investment Breakdown

Initial Franchise Fee(1)$60,000 - $85,000
Initial Equipment and Supplies(2)$55,000 - $60,000
Office Equipment & Supplies(3)$5,000 - $10,000
Grand Opening Marketing(4)$1,500 - $3,000
Travel for Initial Training(5)$3,000 - $7,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee8% of gross sales
Marketing/Advertising Fee8% of gross sales

Other Ongoing Fees

Administrative Fee11%
National Ad Fund Contribution1%
Late Payment Fee1.5%
Additional Initial Training Per DiemVaries
Additional Training & Assistance Per DiemVaries

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$502,229/year
Disclosure Year2024
Reporting Units
Revenue VarianceHigh variance (wide performance range)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

90

Total Units

+7

Net Growth (YoY)

+8.4%

Growth Rate

Franchised Units88
Company-Owned Units2

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.

Related Resources

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