---
title: Healthy Franchise System Series, Conclusion | FranchiseGrade.com, Inc.
description: The conclusion of our six-part series comparing Healthy and Unhealthy Franchise Systems looking at several key Items of a Franchise Disclosure Document.
image: https://mvp.franchisegrade.com/hubfs/assets/images/reports/facts-and-figures/2015/fg-report-healthy-franchise-system-series-conclusion.png
---

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The headline and subheader tells us what you're [offering](https://mvp.franchisegrade.com/reports/facts-and-figures/healthy-franchise-system-series-conclusion#), and the form header closes the deal. Over here you can explain why your offer is so great it's worth filling out a form for.

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How can Healthy Franchise Systems shape the industry tomorrow?

In concluding our special series comparing Healthy and Unhealthy Franchise Systems we summarize the previous six weeks reports on major differences in several Items of a Franchise Disclosure Document (FDD.) We looked at Item 3 Legal Actions, Item 5 Initial Franchise Fees, Item 6 Other Fees, Item 8 Rebates Received by Franchisor, Item 19 Financial Performance Representation, and Item 20 Outlet Growth.

**The Key to Picking the Right Franchise For You is to Research, Analyze, and Ask Questions. No One Section of an FDD will provide an accurate indication of the Overall Health of the System. Each System Must be Given Its' Due Diligence.**

Each of these sections revealed clear differences between Healthy and Unhealthy Franchise Systems. These differences can be summarized in the following list that is in no way the entirety of our findings; Healthy Franchise Systems:

- Have much less litigation than Unhealthy Franchise Systems.
- Charge higher initial franchise fees.
- Have a higher royalty rate but charge far less in advertising fund fees.
- Receive less revenue in rebates from suppliers.
- 70% of Healthy Franchise Systems make an Item 19 disclosure versus 51% of Unhealthy Franchise Systems.
- Twice as many of the Healthy Franchise Systems disclose expense data compared to the Unhealthy Franchise Systems.
- High outlet growth that has averaged 10.5% over the past five years compared to -7% for Unhealthy Franchise Systems over the same period.

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    "@type" : "PostalAddress",
    "addressCountry" : "United States of America",
    "addressLocality" : "Philadelphia",
    "addressRegion" : "Pennsylvania",
    "postalCode" : "19103",
    "streetAdress" : "Suite 3600, 1650 Market Street"
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  "founder" : {
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    "name" : "Jeff Lefler"
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  "foundingDate" : "2013-01-01",
  "legalName" : "Better Franchising Inc.",
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