FDD GAP ANALYSIS · FOR FRANCHISORS
Find the gaps hidden in your FDD.
FDD contract risk analysis is the process of reviewing a franchise disclosure document and related agreements to identify insurance requirements, contractual obligations, and gaps that could expose the franchisor or franchisee to unnecessary risk. The review compares the requirements stated in the FDD and franchise agreement with the insurance coverage actually required and carried. It can identify outdated limits, missing coverage requirements, unclear additional-insured provisions, indemnification issues, and inconsistencies between contractual obligations and the insurance program. A structured analysis helps ensure that insurance requirements support the risks created by the franchise system rather than leaving important exposures unaddressed.
Every requirement looks airtight. We find the one that isn't.
TRUSTED BY GROWTH-FOCUSED FRANCHISORS
10/10
FDDs we review have critical insurance gaps that legal, finance, or broker teams missed.
WHAT FRANCHISEE FRUSTRATION ACTUALLY SOUNDS LIKE
When the FDD is off, this is the phone call you get.
"You said $300/month. I'm paying $1,100."
A painting franchisee opens on the FDD estimate. Real coverage to brand standard costs nearly 4x as much. They go uninsured to bridge the gap, then a subcontractor injury triggers a claim, and the franchisor is named.
"This policy doesn't cover what I do."
A mold-remediation operator buys general liability, but the FDD never mentioned pollution liability. A containment failure leads to illness, the policy doesn't apply, and the brand is pulled into the defense.
"I have insurance, but I'm still not covered."
A franchisee buys the general liability coverage the FDD requires. But the policy excludes a job type they do every week. An employee damages a customer's property on one of those jobs, the claim is denied, and the franchisee blames the brand for the gap.
"My insurance jumped fivefold."
A medspa sees $250/month in the FDD. Once they add injectables and devices, the real premium hits $1,500. They cut coverage to afford it, and a patient incident pulls the franchisor into litigation.
WHEN YOU WORK WITH RIKOR, YOU GET
We align what's written with what's real.
01
Costs that match reality
What the coverage your FDD requires actually costs today.
02
Gaps found before a claim
The exclusions and missing coverages that get claims denied, surfaced now.
03
Requirements that fit your brand
Coverage matched to what your franchisees actually do, not copied from another industry.
04
A brand you can defend
Disclosures that hold up when a franchisee has a loss.
QUESTIONS FRANCHISORS ASK
Before you book the call.
DON'T WAIT FOR A CLAIM TO FIND THE GAP
Protect your franchisees. Protect your brand.
One gap can cost a franchisee everything and name the brand in the claim. A 30-minute review shows you where you're exposed, while you can still fix it.