<?xml version="1.0" encoding="UTF-8"?><rss xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:atom="http://www.w3.org/2005/Atom" version="2.0"><channel><title><![CDATA[Franchise Capital Risk Advisory]]></title><description><![CDATA[Franchise Capital Risk Advisory]]></description><link>https://www.franchisecapitalrisk.com/blog</link><generator>RSS for Node</generator><lastBuildDate>Mon, 19 Oct 2026 05:41:11 GMT</lastBuildDate><atom:link href="https://www.franchisecapitalrisk.com/blog-feed.xml" rel="self" type="application/rss+xml"/><item><title><![CDATA[Red Flags in Early Franchise Due Diligence]]></title><description><![CDATA[The Franchise Disclosure Document (FDD) tells you what the franchisor is required to disclose. It doesn't tell you what your deal will actually look like. The FDD is a legal document, not a financial model. It shows ranges, averages, and minimums, often based on mature locations operating under conditions that may not match newer locations, current construction costs, or your market. That's why the real diligence starts after you read it. And a few warning signs tend to show up early when the...]]></description><link>https://www.franchisecapitalrisk.com/post/franchise-due-diligence-red-flags</link><guid isPermaLink="false">6ac2c334d926e3d9b0066d18</guid><pubDate>Fri, 16 Oct 2026 12:00:13 GMT</pubDate><enclosure url="https://static.wixstatic.com/media/3890ebe791554540ba6c2e02d3829d55.jpg/v1/fit/w_1000,h_1000,al_c,q_80/file.png" length="0" type="image/png"/><dc:creator>Scott Lyons</dc:creator></item><item><title><![CDATA[How to Run Franchise Validation Calls That Show You the Downside]]></title><description><![CDATA[Validation calls are conversations with current franchisees before you buy. Done well, they are the most useful diligence available to you. Done poorly, they confirm what you already wanted to hear. The difference usually comes down to two things: who you talk to, and what you ask. Who to call When I evaluate a franchise, I want to speak with owners across three groups: Top performers Typical, average performers Owners who struggled or took longer to stabilize Top performers show you what is...]]></description><link>https://www.franchisecapitalrisk.com/post/franchise-validation-calls</link><guid isPermaLink="false">6ac2c2a0baa4cdfb26851ea5</guid><pubDate>Wed, 14 Oct 2026 12:00:18 GMT</pubDate><enclosure url="https://static.wixstatic.com/media/nsplsh_61dc6bf1b4f84b0698b7b022a118083b~mv2.jpg/v1/fit/w_1000,h_1000,al_c,q_80/file.png" length="0" type="image/png"/><dc:creator>Scott Lyons</dc:creator></item><item><title><![CDATA[Three Numbers to Know Before You Sign a Franchise Agreement]]></title><description><![CDATA[A polished pro forma can make almost any franchise look reasonable. It shows where the business could end up. It rarely shows what it takes to get there. Before committing capital, I want every buyer to know three numbers. Not estimates from the franchisor. Numbers you have worked out for your own location. Free download: the 7 questions every franchise buyer should answer before signing. Get the Capital Risk Checklist. 1. Break-even revenue, after debt service This is the monthly revenue...]]></description><link>https://www.franchisecapitalrisk.com/post/franchise-numbers-before-signing</link><guid isPermaLink="false">6ac2c1febaa4cdfb26851d38</guid><pubDate>Mon, 12 Oct 2026 12:00:07 GMT</pubDate><enclosure url="https://static.wixstatic.com/media/11062b_23322e849f0b4b57ba009b9e55878791~mv2.jpg/v1/fit/w_1000,h_1000,al_c,q_80/file.png" length="0" type="image/png"/><dc:creator>Scott Lyons</dc:creator></item><item><title><![CDATA[The Franchise Fee Stack: What You Really Pay During Ramp]]></title><description><![CDATA[Royalties and system fees make sense at scale. They look very different during ramp. Most buyers look at fee percentages in the Franchise Disclosure Document (FDD) and do the math at mature revenue. That math is accurate. It just isn't the math that decides whether you survive year one. Free download: the 7 questions every franchise buyer should answer before signing. Get the Capital Risk Checklist. What the full fee stack looks like For a typical service franchise, ongoing fees often...]]></description><link>https://www.franchisecapitalrisk.com/post/franchise-fees-during-ramp</link><guid isPermaLink="false">6ac2ba43901c627fc3d100ac</guid><pubDate>Fri, 09 Oct 2026 12:00:11 GMT</pubDate><enclosure url="https://static.wixstatic.com/media/599cfc36e9e64341811ef890e64f1c32.jpg/v1/fit/w_1000,h_1000,al_c,q_80/file.png" length="0" type="image/png"/><dc:creator>Scott Lyons</dc:creator></item><item><title><![CDATA[What Mature Unit Economics Don't Tell You About Year One]]></title><description><![CDATA[A franchise system's mature unit economics can look compelling. Strong revenue, healthy margins, a clear path to profit. They almost never tell you what your first year will look like. Where the numbers in the FDD come from Many franchisors share financial performance data in Item 19 of the Franchise Disclosure Document (FDD). It's often the most-read page in the whole document. But look at which locations are included. Many systems only count stores open 12 months or longer. Some require 24...]]></description><link>https://www.franchisecapitalrisk.com/post/franchise-year-one-unit-economics</link><guid isPermaLink="false">6ac2b9bc7babcebbad16496e</guid><pubDate>Wed, 07 Oct 2026 12:00:05 GMT</pubDate><enclosure url="https://static.wixstatic.com/media/df77e5cf8cb6e5f51e4c065c5c62c5e6.jpg/v1/fit/w_1000,h_965,al_c,q_80/file.png" length="0" type="image/png"/><dc:creator>Scott Lyons</dc:creator></item><item><title><![CDATA[Why Ramp Timing Matters More Than Your Franchise Projections]]></title><description><![CDATA[Most franchise investments don't fail at maturity. They struggle during the ramp, the stretch between opening day and the month the business finally covers its costs. Most pro formas assume that stretch goes smoothly. Revenue grows steadily, margins improve, and break-even arrives on schedule. Real ramps rarely behave that way. What a real ramp looks like In months one through three, marketing is still finding traction. Staffing is heavier than revenue supports, because you need a full team...]]></description><link>https://www.franchisecapitalrisk.com/post/franchise-ramp-timing</link><guid isPermaLink="false">6ac2b926d926e3d9b0065e1a</guid><pubDate>Mon, 05 Oct 2026 12:00:15 GMT</pubDate><enclosure url="https://static.wixstatic.com/media/11062b_880c7b78f2784cb48e182e145a301663~mv2.jpeg/v1/fit/w_1000,h_1000,al_c,q_80/file.png" length="0" type="image/png"/><dc:creator>Scott Lyons</dc:creator></item><item><title><![CDATA[How Much Working Capital Does a Franchise Really Need?]]></title><description><![CDATA[One of the questions I get most often from franchise buyers is: "How much working capital should I really plan for?" My answer is usually the same. More than the model wants to admit. Not because the business can't work. Because the first year rarely follows the clean version in the spreadsheet. Free download: the 7 questions every franchise buyer should answer before signing. Get the Capital Risk Checklist. What the FDD number actually is Every Franchise Disclosure Document (FDD) includes an...]]></description><link>https://www.franchisecapitalrisk.com/post/franchise-working-capital</link><guid isPermaLink="false">6ac2b404baa4cdfb268506d3</guid><pubDate>Sun, 04 Oct 2026 20:18:51 GMT</pubDate><enclosure url="https://static.wixstatic.com/media/fe3e3a_10bef8e9805c4da3956f0f3799585739~mv2.png/v1/fit/w_768,h_1000,al_c,q_80/file.png" length="0" type="image/png"/><dc:creator>Scott Lyons</dc:creator></item><item><title><![CDATA[The FDD vs. Reality Gap: Why Your Franchise Can Cost More Than Disclosed]]></title><description><![CDATA[Most first-time franchise buyers build their budget from the Franchise Disclosure Document (FDD). That's the right place to start. It's rarely the right place to stop. The FDD shows what the franchisor is required to disclose: estimated ranges, averages, and minimums. It doesn't show what your location, in your market, at today's construction costs, will actually take to open and survive its first year. How the gap builds Here's an illustration. The numbers are hypothetical, but the pattern...]]></description><link>https://www.franchisecapitalrisk.com/post/fdd-vs-reality-gap</link><guid isPermaLink="false">6ac2a885901c627fc3d0dd6f</guid><pubDate>Sun, 04 Oct 2026 05:00:00 GMT</pubDate><enclosure url="https://static.wixstatic.com/media/fe3e3a_e1575ffd55d4442bb2f204a6b2c052b3~mv2.png/v1/fit/w_1000,h_768,al_c,q_80/file.png" length="0" type="image/png"/><dc:creator>Scott Lyons</dc:creator></item></channel></rss>