Opening costs that are not covered in the FDD

Opening costs that are not covered in the FDD

The Franchise Disclosure Document (FDD) is a vital resource for prospective franchisees. It outlines everything from fees to obligations to litigation history. But it doesn't always paint the full financial picture.

Here are some common costs that may not be fully accounted for in the FDD:

Professional Fees

Legal, financial, and due diligence advisors can run several thousand dollars but are essential for protecting your investment.

Permitting Delays and Regulatory Hurdles

Municipal permitting or inspections often take longer and cost more than expected, especially in high-regulation areas.

Construction Overages

Franchisees frequently encounter higher-than-expected build-out costs due to inflation, supply chain delays, or required upgrades.

Pre-Opening Payroll

Some staffing begins well before you generate revenue—training teams, onboarding managers, or paying during soft openings.

Working Capital Shortfalls

Many franchisees budget through opening day but forget to plan for months of slow ramp-up. The result: strained liquidity.

"The FDD is a starting point—not a full budget. It's your job to uncover the true working capital you need to thrive," says Travis Perrine, Director of Business Development at ApplePie Capital.

"If you're not modeling a 6-to-9 month runway, you're underestimating the real cost of ownership," Travis cautions.

Being proactive in understanding and preparing for these overlooked costs can help franchisees secure the right financing strategy and maintain healthy working capital during launch.

For expert tools and franchise business financing solutions, ApplePie Capital offers a range of options to support your success, whether you’re opening your first location or planning for multi-unit expansion.