Important Disclosures & Disclaimers

What Franchise Businesses is — and is not

Franchise Businesses (the “Site”) is an independent research and educational publisher operated by X Enterprises, LLC. We compile, summarize, and translate publicly available information about franchise ownership opportunities in the United States — primarily from Franchise Disclosure Documents (FDDs), publicly filed state registration data, and buyer-submitted reviews — and present that information in formats intended to help consumers do their own research.

We are not:

• A franchise broker, franchise referral network, or lead-generation service for franchisors.
• A franchisor, sub-franchisor, area developer, or master franchisee.
• A registered investment adviser, broker-dealer, financial planner, or insurance producer.
• A law firm, accounting firm, or tax advisory practice.
• An FDD preparer or filer. We do not draft, review, or audit FDDs on behalf of franchisors.

If any of the above describes what you are looking for, this site is not the right resource for you.

For the avoidance of doubt: Franchise Businesses and X Enterprises, LLC are not registered with, licensed by, regulated by, or approved by the U.S. Federal Trade Commission, the U.S. Securities and Exchange Commission, the Financial Industry Regulatory Authority, the California Department of Financial Protection and Innovation, the New York Department of Law, or any other federal, state, or non-U.S. franchise, securities, or financial-services regulator.

Because this Site operates as an affiliate and resource publisher (and not as a franchisor, franchise broker, lead generator, investment adviser, or broker-dealer), no such registration, license, or approval is required for the activity described on this Site as of the date of this page. The franchise-broker registration framework established by Washington's Franchise Investment Protection Act (chapter 19.100 RCW), the corresponding investment-adviser registration framework under Washington's Securities Act (chapter 21.20 RCW), and similar registration regimes in other U.S. states, all target the sale or brokerage of franchises, securities, and business opportunities — activities we do not perform. Likewise, the FTC's Franchise Rule (16 C.F.R. Part 436) and the FTC's Business Opportunity Rule (16 C.F.R. Part 437), as well as the FTC's Endorsement Guides (16 C.F.R. Part 255) that govern this Site's affiliate disclosures, regulate franchisors, business-opportunity sellers, and endorsers — not independent editorial publishers of the kind this Site is.

Not investment, financial, legal, or tax advice

Specifically, nothing on this Site is a recommendation, endorsement, solicitation, or offer to:

• Buy, sell, lease, or invest in any specific franchise opportunity, brand, or system.
• Enter into any franchise agreement, area development agreement, or master franchise agreement.
• Purchase any security, business opportunity, or other investment product.
• Refinance, restructure, or commit any portion of your capital to a franchise.

Before taking any action based on information you read here, you should consult a qualified franchise attorney, a CPA or tax advisor familiar with franchise taxation, and an independent business advisor. See our section on professional advice below.

Editorial content, not advertising

Everything published on this Site is editorial content — research, commentary, summaries, and educational material produced or commissioned by our editorial team. It is not advertising, native advertising, sponsored content, branded content, or an advertorial.

Where this Site displays or links to third-party advertising (for example, through a display-ad network), that advertising is clearly demarcated from editorial content by placement, labelling, and visual treatment in accordance with the FTC's .com Disclosures: How to Make Effective Disclosures in Digital Advertising (2013) and the Guides Concerning the Use of Endorsements and Testimonials in Advertising (16 C.F.R. Part 255). Editorial content is not influenced by, and is not reviewed or approved by, any advertiser or affiliate partner.

We do not currently accept sponsored posts, paid placements, or paid reviews from franchisors or from any party with a financial interest in the outcome of a prospective franchisee's decision. If that policy ever changes, the change will be disclosed prominently on this page and on the affected content before publication.

We do not sell, broker, or recommend franchises

Franchise Businesses does not sell franchises. We do not earn a commission on the sale of any franchise opportunity, and we do not receive any payment from a franchisor contingent on you signing a franchise agreement.

We do not recommend any specific franchise brand, system, or opportunity. References to specific brands, industries, or investment ranges on this Site are for educational comparison only. The decision of whether to purchase a franchise — and which one, if any — is yours alone.

We do not collect broker-style referral fees from franchisors. Where we earn revenue at all, it comes from clearly disclosed advertising, affiliate partnerships with general business-service providers (such as legal-document services or business-banking platforms), and reader-supported programs such as newsletters or research subscriptions. See our affiliate disclosure section.

We are not paid by franchisors to feature, rank, or review their brand favorably. If we ever change that model, we will disclose it prominently on the affected page and on this page.

The Franchise Disclosure Document (FDD) is the source of truth

Under the U.S. Federal Trade Commission's Franchise Rule (16 C.F.R. Part 436), every franchisor selling franchises in the United States is required to deliver a current Franchise Disclosure Document (FDD) to a prospective franchisee at least 14 calendar days before the prospective franchisee signs any binding agreement or pays any consideration.

The FDD has 23 numbered items, including:

• Item 5 — Initial fees paid to the franchisor.
• Item 6 — Other fees (royalties, marketing fund, technology fees, etc.).
• Item 7 — Estimated initial investment range.
• Item 19 — Financial performance representations (if any). FDDs are not required to include Item 19; if it is missing, the franchisor is making no earnings claim.
• Item 20 — Number of franchise outlets opened, closed, and transferred in each of the past three years — a critical read for any prospective franchisee.
• Item 21 — Audited financial statements of the franchisor.

Earnings, results, and forward-looking statements

Any references on this Site to revenue, gross sales, net income, profit, ROI, breakeven, payback period, or other financial outcomes — whether historical, hypothetical, illustrative, or forward-looking — are provided for informational and educational purposes only.

We make no guarantee that you will achieve any particular result or any level of income. Past performance is not indicative of future results. Many franchisees — sometimes a majority, depending on the brand and year — earn nothing or lose money.

Specific things to understand about franchise earnings data:

• Item 19 is optional. A franchisor is not required to provide earnings data. If the FDD you receive has no Item 19, the franchisor is making no financial performance representation, and any earnings figure you encounter elsewhere — including on this Site — is not the franchisor's claim.
• Item 19 figures are usually averages or medians of a small sample of reporting outlets. They typically do not represent what a new franchisee should expect, and many high-performing outlets are excluded.
• "Gross sales" is not "profit." Royalty fees, marketing fund contributions, cost of goods, labor, rent, and dozens of other costs all come out before a franchisee sees any income.
• "Successful" outlets are not always profitable. A unit that is technically still open may be operating at a loss, with the owner subsidizing it from outside income or savings.

For reference: the FTC's exact Item 19 prescribed statements

Every franchisor is required to begin its Item 19 with the following statement, whether or not it makes a financial performance representation:

“The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.”

— 16 C.F.R. §436.5(s)(1)

And, when a franchisor elects not to make any financial performance representation, it must include the following statement:

“We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting [name, address, and telephone number], the Federal Trade Commission, and the appropriate state regulatory agencies.”

— 16 C.F.R. §436.5(s)(2)

Many of the FDDs we summarize on this Site will contain one of these two statements verbatim. If you read a financial performance figure on this Site that does not appear in the franchisor's Item 19, treat the figure with caution: it is not the franchisor's claim, and the franchisor is required by federal law to disclaim it.

For a fuller treatment of earnings, results, and forward-looking statements, see the network-wide Earnings Disclaimer published by X Enterprises, LLC.

Risk disclosure

Franchise ownership — like any business ownership — involves substantial risk. Common risks include, without limitation:

• Total loss of invested capital. The Federal Trade Commission and most state regulators require franchisors to warn prospective franchisees that franchise businesses can fail, and that franchisees can — and do — lose their entire investment.
• Ongoing royalty and marketing fund obligations that continue whether or not your outlet is profitable.
• Territory encroachment, system-wide competition, and changes to the brand's operating model that can materially affect unit economics.
• Termination and non-renewal risk. Franchisors can terminate your agreement for a variety of reasons defined in the franchise contract. Many terminated franchisees have no continuing right to operate.
• Renewal and transfer conditions that may make it difficult to sell the business or pass it on.
• Limited exit options. Resale markets for franchise outlets are often thin, and any prospective buyer must also be approved by the franchisor.
• Personal guarantees, restrictive covenants, and arbitration clauses that may bind you long after you exit the system.

We cannot enumerate every risk here. The FDD — particularly Items 1, 3, 17, and 31 disclosures — and a qualified franchise attorney are your best resources for understanding the specific risks of a specific opportunity.

Consult qualified professionals

Before signing any franchise agreement, area development agreement, or master franchise agreement — and before committing any capital — we strongly recommend that you engage the following professionals, each paid by you and independent of the franchisor and of this Site:

• A franchise attorney licensed in your state who has reviewed the franchisor's current FDD and franchise agreement, and who represents your interests (not the franchisor's).
• A CPA or tax advisor familiar with franchise taxation, including the implications of the business entity structure, state and local taxes, sales tax collection, and any exit tax.
• An independent business advisor or franchise consultant who is not paid by the franchisor. (Avoid “franchise consultants” or “franchise brokers” who are compensated by the brands they recommend — that is a sales relationship, not an advisory one.)
• A commercial banker or SBA lender if you plan to finance the investment, to confirm your assumptions about financing availability and cost.
• Existing franchisees in the system. The franchisor is required to provide a list of current franchisees (Item 20 of the FDD). Talk to at least 10 — including some who exited the system, not just the brand's hand-picked references.

Information accuracy and no warranty

We compile information on this Site from sources we believe to be reliable — primarily publicly filed FDDs, state franchise registration databases, brand websites, and user-submitted content. However:

• We do not warrant the accuracy, completeness, currency, or fitness for any particular purpose of any information on this Site.
• FDDs are updated annually. Investment figures, fee structures, outlet counts, and other facts can change between FDD updates and may be outdated on this Site at any given time.
• Some information on this Site is generated or assisted by artificial intelligence tools (see AI-assisted content) and may contain errors despite our editorial review.
• User-submitted reviews, ratings, and testimonials reflect the individual opinions of the submitter and are not independently verified by us.

All content on this Site is provided “as is” and “as available”, without warranties of any kind, express or implied, including but not limited to the implied warranties of merchantability, fitness for a particular purpose, accuracy, and non-infringement.

Affiliate relationships (FTC 16 CFR §255)

In plain English: some links on this Site are affiliate links. If you click one and then sign up for or buy something from the linked merchant, we may earn a commission or referral fee. It does not change the price you pay.

Some links on this Site are affiliate links. If you click an affiliate link and subsequently take a qualifying action — for example, signing up for a business-incorporation service, opening a business bank account, or purchasing a legal-document template — we may earn a commission, referral fee, or other compensation from the merchant. The price you pay is the same whether or not you use our links.

In accordance with the U.S. Federal Trade Commission's Guides Concerning the Use of Endorsements and Testimonials in Advertising (16 C.F.R. Part 255, the “Endorsement Guides”), we disclose material connections that may affect the weight or credibility of content on this Site.

We do not accept affiliate compensation from franchisors in connection with any specific franchise opportunity on this Site. If that ever changes, we will label the affected content clearly on the page where it appears.

For the complete affiliate disclosure applicable to this Site and to other sites in the X Enterprises network, see the Affiliate Disclosure published by X Enterprises, LLC.

AI-assisted content

Some or all of the editorial content on this Site — including industry overviews, brand summaries, FDD explanations, and comparison analyses — is generated, drafted, or assisted by artificial intelligence tools. AI-generated content may contain errors, omissions, or factual inaccuracies despite our editorial review process. Always independently verify critical information before relying on it.

Where an individual page, summary, or comparison on this Site is materially generated by AI, we may add a brief in-page label such as "AI-assisted research — reviewed by our editorial team" in close proximity to the affected content, consistent with the FTC's guidance on AI-generated endorsements and testimonials and with applicable state transparency requirements.

For the network-wide AI content disclosure, see the AI Content Disclosure published by X Enterprises, LLC.

Accessibility (WCAG 2.1 AA)

We strive to make this Site accessible to all users, including those using assistive technologies. We aim to conform to the Web Content Accessibility Guidelines (WCAG) 2.1 Level AA, which is the de facto accessibility standard referenced by federal courts adjudicating website-accessibility claims under Title III of the Americans with Disabilities Act (42 U.S.C. §§ 12181–12213) and is also the technical standard adopted by the U.S. Department of Justice's Title II web rule (28 C.F.R. Part 35; published April 24, 2024).

Accessibility barriers: if you encounter any accessibility barrier on this Site — for example, a missing alt text on an image, a color-contrast issue, a keyboard trap, or an unlabeled form control — please contact us at editor@franchisebusinesses.com so we can review and address it. Please include the URL of the page you were visiting and a brief description of the barrier; we aim to respond within a reasonable timeframe.

Children (COPPA)

This Site is not directed to children under the age of 13, and we do not knowingly collect personal information from children under 13. We do not market franchise opportunities, financial products, or any other products or services to children. The subject matter of this Site (business ownership, franchise investment, FDD analysis, financial disclosures) and the visual design, language, and reading level of our content are aimed at prospective business owners, who are by definition adults.

Our practices are designed to comply with the Children's Online Privacy Protection Act (COPPA), 15 U.S.C. §§ 6501–6506, and the FTC's implementing rule at 16 C.F.R. Part 312 (most recently amended April 22, 2025; 90 FR 16977). If you believe a child under 13 has provided personal information through this Site, please contact us at editor@franchisebusinesses.com so we can delete the information.

No personalized advice

We do not provide personalized investment, financial, legal, tax, business, or franchise-selection advice. Nothing on this Site — including any response to a reader question, any search result, any comparison tool, any AI-assisted summary, or any brand review — is tailored to your specific situation.

Your decision whether to pursue a franchise opportunity, which brand (if any) to inquire about, how to structure any resulting business, and how to evaluate any FDD, is yours alone. You are responsible for conducting your own due diligence and for consulting licensed professionals (attorneys, accountants, financial advisers) in your jurisdiction before acting on anything you read here.

No agency, no fiduciary, no joint venture

Your use of this Site — and any reliance you place on its content — does not create any agency, partnership, joint venture, employment, fiduciary, advisory, or other special relationship between you and Franchise Businesses, between you and X Enterprises, LLC, between you and any owner, employee, contractor, or affiliate of the foregoing, or between you and any franchisor, brand, or third party referenced on this Site.

We are not your agent, your attorney, your accountant, your broker, your investment adviser, your representative, or your fiduciary in any sense. No duty of loyalty, care, or disclosure is created by visiting this Site or by your reliance on any content you find here. The publisher's editorial model is generic: this Site produces content intended for a general audience of prospective franchise researchers, not for any specific individual.

Multi-state regulatory acknowledgment

Franchise and business-opportunity regulation in the United States is a federal-state overlay. The FTC's Franchise Rule (16 C.F.R. Part 436) sets the federal floor, and a subset of U.S. states impose additional franchise-registration, franchise-broker-registration, and franchise-advertising requirements. The strictest state-level franchise regimes are California (Cal. Corp. Code §§ 31200–31202; Cal. Code Regs. tit. 10, §§ 310.1 et seq.; the California Franchise Investment Law administered by the California Department of Financial Protection and Innovation) and New York (N.Y. Gen. Bus. Law Article 33, including § 683; 13 N.Y.C.R.R. Part 200 administered by the New York Department of Law), followed by the other twelve registration states: Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, North Dakota, Rhode Island, South Dakota, Virginia, Washington (chapters 19.100, 21.20, and 19.86 RCW), and Wisconsin. The 2023 NASAA Model Franchise Broker Registration Act continues to be adopted in stages across additional states.

These regimes regulate franchisors, sub-franchisors, area developers, franchise brokers, franchise sales-representatives, and (in some states) business-opportunity sellers — not independent editorial publishers that summarize publicly disclosed FDDs and earn general business-services affiliate commissions. Because the activity described on this Site is editorial research and affiliate marketing of general business services (and not the offer, sale, or brokerage of franchises, securities, or business opportunities), none of these regimes is implicated by the activity described on this Site as of the date of this page.

Standard legal-hygiene clauses

The following standard legal-hygiene clauses apply to your use of this Site and to this Disclaimer.

Severability

If any provision of this Disclaimer is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable for any reason, the remaining provisions shall continue in full force and effect, and the affected provision shall be reformed only to the minimum extent necessary to make it enforceable while preserving the original intent.

No waiver

The fact that we do not enforce any provision of this Disclaimer immediately, or that we delay in doing so, does not waive our right to enforce that provision (or any other provision) at any later time. Any waiver must be in writing and signed by us to be effective.

Entire agreement

This Disclaimer (together with our Privacy Policy) is the complete and exclusive statement of the disclaimers, limitations, and terms applicable to your use of this Site, and supersedes any prior version, prior statement, or prior agreement on the same subject matter. We may update this Disclaimer from time to time; the version posted at the time of your visit governs that visit.

Governing law

This Disclaimer, and any dispute or claim arising out of or in connection with it or your use of this Site, is governed by and construed in accordance with the laws of the State of Washington, without giving effect to its conflict-of-laws principles. Nothing in this clause gives jurisdiction to any specific court or waives any defense you may have under applicable law.

Not legal advice

This page is general regulatory and publisher-hygiene information, not legal advice. We are not your lawyer, and nothing on this Site creates an attorney-client, fiduciary, advisory, or any other special relationship between you and us. For legal questions specific to your situation, consult a licensed attorney in your jurisdiction.

Limitation of liability

Use at your own risk. This Site and all content on it are provided on an “as is” and “as available” basis for general informational purposes only. We make no representations or warranties of any kind, express or implied, about the operation of this Site or the accuracy, completeness, currentness, reliability, suitability, or availability of any content. You use this Site, and rely on any content you find here, at your own risk. To the maximum extent permitted by applicable law, we disclaim all warranties, express or implied, including warranties of merchantability, fitness for a particular purpose, non-infringement, and accuracy.

Limitation of liability. To the maximum extent permitted by applicable law, we, our owners, employees, contractors, and affiliates will not be liable for any indirect, incidental, special, consequential, or punitive damages, or for any loss of profits, revenues, data, goodwill, or other intangible losses, arising out of or in connection with your use of (or inability to use) this Site or any content on it — even if we have been advised of the possibility of such damages. Where liability cannot be excluded as a matter of law, our total aggregate liability to you for any and all claims arising from your use of this Site will not exceed the greater of (a) the amount you have paid us to use this Site in the twelve (12) months before the claim (which is currently zero), or (b) one hundred U.S. dollars (US$100). Nothing in this Disclaimer is intended to exclude or limit liability that cannot be excluded or limited under applicable law, including liability for fraud, for death or personal injury caused by negligence, or for any other liability that applicable law says cannot be limited by contract.

Trademarks and brand references

All franchise brand names, logos, trademarks, and service marks referenced on this Site are the property of their respective owners. References to specific brands on this Site are made solely for editorial and educational purposes under nominative fair use — to identify the brands being discussed — and do not imply any affiliation, sponsorship, endorsement, or partnership between Franchise Businesses and the brand owner.

If you are a trademark owner and believe a reference on this Site is inaccurate or exceeds the bounds of nominative fair use, please contact us at editor@franchisebusinesses.com.

If you are a franchisor and believe that information about your brand or your FDD on this Site is inaccurate, out of date, or incomplete, please contact us at editor@franchisebusinesses.com with the FDD item number and the specific figure you are disputing. We review correction requests promptly.

Editorial independence

Franchise Businesses maintains editorial independence. Our research team is not paid by, does not report to, and does not receive bonuses tied to the commercial success of any franchisor we cover.

Our methodology prioritizes:

• Public, verifiable sources — primarily current FDDs and state registration data.
• Plain-language translation of regulatory and contractual language.
• Surfacing what is not disclosed (for example, the absence of an Item 19 financial performance representation).
• Caveats where data is incomplete, stale, or contested.

We may, at our discretion, decline to cover certain brands where we cannot verify publicly available information, or where we determine that doing so would risk misleading readers.

No attorney-client or accountant-client relationship

Your use of this Site does not create any agency, partnership, joint venture, employment, fiduciary, advisory, or other special relationship between you and Franchise Businesses, between you and X Enterprises, LLC, or between you and any franchisor, brand, or third party referenced on this Site.

Nothing on this Site shall be construed as a waiver of any privilege, a creation of any attorney-client or accountant-client relationship, or an offer or solicitation in any jurisdiction where such an offer or solicitation would be unlawful.

U.S. focus and international visitors

This Site is operated from the United States and is primarily intended for users located in the United States. Franchise regulation in the United States is governed primarily by the FTC's Franchise Rule (16 C.F.R. Part 436), with additional registration and disclosure requirements imposed by individual states (notably California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin — collectively, the “registration states”).

Note: the FTC's Business Opportunity Rule (16 C.F.R. Part 437) is a separate federal rule governing the sale of certain business opportunities that may not meet the FTC's definition of a "franchise." Some content on this Site may touch on business opportunities adjacent to franchises; nothing on this Site constitutes an offer or sale covered by that Rule.

International visitors: if you access this Site from outside the United States, you do so on your own initiative and at your own risk, and you are responsible for compliance with your local laws. Franchise and business-opportunity regulation varies materially by country. This Site does not address non-U.S. franchise regimes, and nothing here should be relied upon as a description of the law of any jurisdiction outside the United States.

Changes and contact

We may update this Disclosures & Disclaimers page from time to time. Any changes will be posted on this page with a revised “Last updated” date at the top.

If you have questions about this page or about the relationship between Franchise Businesses and any franchise, brand, or third party referenced here, contact us at editor@franchisebusinesses.com.