1. Primary Source Requirement
We do not accept press releases, franchisor marketing brochures, or promotional estimates. Every financial metric on FranchisePixel is verified against:
- Official State FDD Filings: Legal filings registered with the California Department of Financial Protection and Innovation (DFPI), Wisconsin Department of Financial Institutions (DFI), and Minnesota Commerce Department.
- SBA 7(a) FOIA Loan Tables: Historical default and charge-off rates released under the Freedom of Information Act by the Small Business Administration.
2. Item 19 Normalization Protocol
Item 19 financial representations vary widely between brands. Some franchisors disclose gross sales, others disclose gross margins, and some provide quartile distributions. Our research team normalizes all data into standard Average Unit Volume (AUV), median performance, and estimated take-home EBITDA cash flow.
3. Zero-Broker Independence
We strictly prohibit sponsored ratings, pay-for-placement rankings, or affiliate lead fees from franchisors. Our editorial signals (BUY, HOLD, CAUTION, AVOID) are determined solely by financial performance, royalty drag, and 3-year closure rates.
4. Corrections & Disputed Data
If a franchisor or operator believes a metric does not reflect their most recent state regulatory filing, please email our research desk directly at research@franchisepixel.com with the filing date and document citation. Corrections are audited and published within 24 hours.