GLOSSARY
Item 7 (total investment)
FDD Item 7 is the franchisor's estimate of everything it costs to open one outlet — from the franchise fee through build-out, equipment, and initial working capital.
The franchise fee is just the ticket in the door. Item 7 is the full bill: real estate deposits, construction, equipment, signage, inventory, training travel, insurance, and a first few months of working capital, presented as a low–high range.
Read the high end, not the low. The most common way new franchisees get in trouble is running out of cash before the business ramps — and Item 7's working-capital line is frequently the most optimistic number in the document.
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