Franchise Grade assigns letter grades to franchise systems. Here is how their grading methodology compares to FDDIntel's data-driven scoring.
Franchise Grade assigns letter grades (A through F) to franchise systems based on their methodology. FDDIntel takes a different approach — scoring franchises on a 0-100 scale using specific FDD data points including unit growth, closure rates, fee burden, and disclosed financials, while also providing profitability estimates and detailed breakdowns.
Franchise Grade pioneered the idea of applying a standardized grade to franchise systems, which is genuinely useful for quick filtering. But a single letter grade can oversimplify a complex investment decision. Prospective franchisees often want to understand what's behind the grade — which specific factors are strong, which are concerning, and how the numbers compare to category peers.
Additionally, access to Franchise Grade's full reports requires a paid subscription. For researchers who want to evaluate multiple brands or compare opportunities across categories, the cost can add up quickly. Some users look for alternatives that provide more granular data or different pricing structures.
| Feature | FDDIntel | Franchise Grade |
|---|---|---|
| Franchise ratings/scores | 0-100 score | A-F grade |
| Investment cost breakdowns (Item 7) | ||
| Royalty and fee analysis (Item 6) | Partial | |
| Revenue data (Item 19) | Limited | |
| Unit growth and closure tracking | ||
| Profitability estimates | ||
| Category benchmarking | Partial | |
| Side-by-side brand comparison | Limited | |
| Score component breakdown | Paid | |
| Free access to full reports | ||
| Historical grade/score tracking | ||
| Franchise broker tools |
Franchise Grade distills their assessment into an A-through-F letter grade. While intuitive, this can mask important nuances — a franchise with excellent growth but high fees might get the same grade as one with moderate growth and low fees. FDDIntel uses a 0-100 numeric score with a visible breakdown showing exactly how each factor (growth, risk, fees, financial disclosure) contributes. You can see where a franchise is strong and where it's weak.
Franchise Grade offers basic information for free but charges for detailed reports and full grade breakdowns. FDDIntel provides all reports, scores, and data at no cost during early access. This means you can evaluate dozens of franchise opportunities without worrying about per-report costs.
FDDIntel goes beyond scoring to estimate owner profitability. Using disclosed Item 19 revenue data (when available) and category-specific cost benchmarks, FDDIntel calculates estimated annual profit and profit margins. Franchise Grade focuses on system-level grading without projecting individual unit economics.
Franchise Grade uses a proprietary methodology that evaluates factors like system size, growth, financial performance, and litigation history to assign A-through-F letter grades. The specific weighting is not fully public. FDDIntel's 0-100 score is based on disclosed FDD data including unit growth, closure rates, fee burden relative to category, and financial disclosure quality.
Franchise Grade offers basic franchise profiles for free, but detailed grade reports, score breakdowns, and full analysis require a paid subscription. FDDIntel provides all reports and scores at no cost during the early access period.
Both systems aim to simplify franchise evaluation, but they measure different things. Franchise Grade focuses on system-level health and track record. FDDIntel's score emphasizes factors most relevant to a prospective owner: growth trajectory, closure risk, fee burden, and whether financial data is disclosed. The best approach is to consider multiple data points rather than relying on any single score.
Browse franchise reports built from actual FDD data. Investment breakdowns, profitability estimates, risk analysis, and scoring — all free during early access.
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