What is FDD Item 6 in franchising?

Question

Accepted Answer

The section that lists all ongoing fees paid to the franchisor: royalties, marketing fund contributions, technology fees, training fees, and any other recurring obligations. Item 6 is where the true ongoing cost of brand affiliation becomes visible. A brand with a 6% royalty and a 2% marketing fund costs 8% of gross revenue before any local operating expenses. Reading Item 6 alongside Item 19 tells you whether the business model actually works at those fee levels.