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Not sure yet? Read the free buyer's guide first, or request the free worked example: this exact method applied to a real national brand's 900+ page FDD, every claim cited.

Three items carry ~90% of the signal. The Lens scores them mechanically.

The checks run in order of predictive signal, not Item number. That ordering is part of the method.

Check 1: Item 20: Outlets

The most predictive tables in the document, turned into four numbers: net unit change over three years, the attrition rate, pipeline vs. closures, and whether the former-franchisee contact list the law requires is actually there. Fixed GREEN / WATCH / STOP thresholds: you copy numbers off a page and compare.

Check 2: Item 19: Financial Performance

One question: does the franchisor tell you what a unit actually earns? And what it means when the answer is no (it's legal, it's common, and it moves the entire burden of proof onto you).

Check 3: Item 3: Litigation, sorted into buckets

Volume means nothing; direction means everything. The Lens sorts cases into noise (routine), signal (franchisees suing the franchisor over the economics), and the franchisor's own regulatory record, with thresholds for each.

The compounding rule + verdict

Individual scores can mislead. When a shrinking system, no earnings disclosure, and franchisee economics lawsuits appear together, the Lens compounds them into a STOP: the same one story told three ways. The verdict page tells you exactly what to demand, in writing, before you sign.

The phone call that beats the whole worksheet

A three-question script for calling five former franchisees (the page of the FDD nobody opens), plus what to hand your attorney so your expensive hour is spent on the questions that matter.

The FDD Red-Flag Lens is a diligence tool, not legal, financial, or investment advice, and it does not replace a franchise attorney; it makes your time with one count. Score thresholds are the author's editorial judgment. Verify every figure against your own brand's current FDD.

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