Franchise Glossary
FDD Item 7
What is FDD Item 7 in franchising?
The section disclosing the estimated initial investment range, meaning the total capital required to open one franchise unit. Item 7 must include every pre-opening cost: franchise fee, real estate, build-out, equipment, inventory, training travel, working capital, and opening marketing. Ranges are estimates. Actual costs depend on your market, your real estate deal, and your contractor. Treat the low end as optimistic and the high end as your planning number.