# Item 7 worksheet

This page is a paper tool. Copy the filing's rows onto it, add site quotes in
a later column, and write the reason for every difference. It does not add,
rank, or correct Item 7. There is no calculator. If a filing's high column
does not equal its printed total — Shah's fifteen lines add to $410,000
against a printed $405,000 — copy both numbers and leave the gap.

The [how to read Item 7](/how-to-read-item-7/) chapter is the prose version of
the same sequence. Use that chapter to understand the steps. Use this page to
fill them in.

## Reading order

Complete these steps in order, on paper or in a spreadsheet you control. Do
not skip to the total.

1. **Document.** Issuance date, franchisor legal name, and whether this table
   is for one outlet, a development schedule, an express format, or a full
   restaurant.
2. **Format line.** Square footage and site type as printed above Item 7.
   GDK: 1,200–1,400 sq ft inside a five-outlet minimum. Shah's: 1,200–2,000
   sq ft full-sized restaurant. Great Greek: 1,800–2,000 sq ft in-line or
   end-cap. Mad for Chicken: 2,000–4,000 sq ft full restaurant (express is a
   different table at $242,500–$466,700). 375°: 800–1,500 sq ft. Döner Haus:
   700–1,200 sq ft imbiss, issued range only.
3. **Columns.** Amount is not enough. Copy method of payment, when due, and
   to whom paid from the FDD.
4. **Labels.** Copy every row name exactly. Do not rename Fixture Package as
   equipment, or Restaurant Package as FF&E.
5. **Footnotes.** Zeros, discounts, used equipment, landlord contributions,
   training travel, and the additional-funds period live here. Great Greek's
   $35,550 fee low is an affiliated-brand discount; first-time is $39,500.
6. **Arithmetic.** Add the low column. Add the high column. Write the printed
   total. If they disagree, write all three.
7. **Cross-checks.** Item 5 fee, Item 6 continuing fees, Item 8 required
   purchases, Item 11 training and computer systems.
8. **Site evidence.** Contractor scope, lease and TI, equipment quotes,
   permit estimate, inventory order, monthly cash forecast.
9. **Franchisees.** Actual opening cost and days to open, as the FTC's
   [FDD walkthrough](https://www.ftc.gov/business-guidance/blog/2023/05/franchise-fundamentals-taking-deep-dive-franchise-disclosure-document)
   recommends.

## Blank reconciliation table

Print this table and fill it from the current FDD, not from memory. Leave a
row blank if the filing has no such line. Do not invent a split for a package.

<table class="spec">
  <thead>
    <tr>
      <th scope="col">Type of expenditure (filing label)</th>
      <th scope="col">Filing low</th>
      <th scope="col">Filing high</th>
      <th scope="col">When due / to whom</th>
      <th scope="col">Site quote</th>
      <th scope="col">Difference and reason</th>
    </tr>
  </thead>
  <tbody>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr><th scope="row"></th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr class="total"><th scope="row">Column sums</th><td></td><td></td><td></td><td></td><td></td></tr>
    <tr class="total"><th scope="row">Total printed in filing</th><td></td><td></td><td></td><td></td><td></td></tr>
  </tbody>
</table>

Eighteen blank rows is enough for GDK's twenty-line table if a few related
rows share a line in your handwriting, and enough for Great Greek's twelve
lines with room to spare. If the filing is longer, add paper. Do not drop
rows to make the sheet fit.

## Labels to copy, not amounts to guess

When the FDD is in hand, the generated cost pages are a second check that the
labels were copied completely:

- [German Doner Kebab](/costs/german-doner-kebab/) — Initial Franchise Fee;
  Lease, Utility & Security Deposits; Leasehold Improvements; Mechanical,
  Electrical and Plumbing; Signage; Restaurant Equipment; Fit Out Materials
  & Installation; Hardware and Software; Furniture & Fixtures; Office
  Supplies & Misc.; Business Licenses; Professional Fees; Insurance; Initial
  Training; Opening Inventory; Pre-Launch, Soft Launch and Grand Opening
  Marketing; Property Agent; Architects and Project Manager Fees; Additional
  Funds (Approx. 3 months); Small Wares.
- [Shah's Halal Food](/costs/shahs-halal/) — Initial Franchise Fee; Travel
  Expenses to Attend Training; Real Property; Build-Out/Construction; Fixture
  Package; Initial Inventory; Marketing Supplies; Signage; Computer Hardware,
  Software, and POS System; Insurance; Licenses, Permits; Grand Opening
  Campaign; Legal & Accounting; Miscellaneous Opening Costs; Additional
  Funds - 3 Months.
- [The Great Greek](/costs/great-greek/) — Initial franchise fee; Travel and
  Living Expenses (while attending training); Real Estate Lease Deposits;
  Real Estate Service Charge; Design and Project Management Fee; Leasehold
  Improvements; Restaurant Package; Opening Inventory; Insurance; Utility
  Deposits/Licenses; Opening Assistance; Additional funds (for 0 - 6 months).
- [Mad for Chicken](/costs/mad-for-chicken/) — Initial Franchise Fee; Your
  Training Expenses; Lease & Utilities deposits; Architectural Plans;
  Leasehold Improvements, Construction and/or Remodeling; Furniture, Fixtures
  and Equipment; Signage; Business Licenses and Permits; POS System; Initial
  Inventory; Professional Fees; Grand Opening Advertising; Insurance;
  Operating Expenses / Additional Funds - 3 months.
- [375° Chicken 'n Fries](/costs/375-chicken/) — Initial Franchise Fee; Your
  Training Expenses; Lease & Utilities deposits; Architectural Plans;
  Leasehold Improvements, Construction and/or Remodeling; Furniture, Fixtures
  and Equipment; Signage; Business Licenses and Permits; POS System; Initial
  Inventory; Professional Fees; Grand Opening Advertising; Insurance;
  Computer Systems; Operating Expenses / Additional Funds - 3 months.

Döner Haus has an issued range of $359,500–$586,000 on the directory and no
line-item schedule here. Copy the range onto the total lines and leave the
row labels to the FDD the franchisor delivers. Do not fill the blank table
from another brand's rows.

## How to use the last two columns

**Site quote** is a dated bid or a lease exhibit, not another FDD. A GDK
fit-out quote belongs next to **Fit Out Materials & Installation**, not next
to Shah's **Build-Out/Construction**. A Great Greek restaurant-package invoice
belongs on that one line even if the invoice happens to list equipment.

**Difference and reason** is a sentence. Useful reasons look like “second-generation
hood reused,” “TI reimbursed 90 days after draw,” “first-time fee $39,500 not
$35,550,” or “POS subscription is Item 6, opening terminals only in this
cell.” Useless reasons look like “seems high” or “used Shah's number.”

The FTC's [compliance
guide](https://www.ftc.gov/system/files/documents/plain-language/bus70-franchise-rule-compliance-guide.pdf)
defines Item 7 as an initial-investment disclosure through the initial
operating period. The site quote column is allowed to run past that period —
a twelve-month cash plan, as the SBA
[startup-cost worksheet](https://www.sba.gov/business-guide/plan-your-business/calculate-your-startup-costs)
suggests — but those later months should be marked as planning, not as a
correction of the filing.

## Checklist before calling the sheet done

1. Every filing row has a line, including zeros (GDK property agent $0–$0;
   GDK leasehold improvements low of $0; Great Greek service charge low of
   $0).
2. Packages are still packages.
3. Column sums and printed totals are both written.
4. Additional-funds period is written on the working-capital row (3 months,
   or 0–6 months).
5. Item 6 royalties and funds are on a monthly appendix, not added into
   Item 7.
6. Personal living expenses are on a separate schedule, as the FTC
   [consumer guide](https://search.ftc.gov/system/files/documents/plain-language/591a_buying_a_franchise_sept_2020.pdf)
   advises.

## Monthly appendix, not a second Item 7

On a separate sheet, list Item 6 royalties, brand fund, required local
advertising, technology fees, and any required cooperative. GDK's 2024 stack
is 6 percent royalty, 3 percent brand fund, and 2 percent local (or a
cooperative levy up to 2 percent). Shah's is 5, 1, and 1. Great Greek is 6,
3 with a right to raise to 4, and 1. Mad for Chicken is 5, 1 plus 1 media
marketing, and 1 local. 375° is 6, 1, and 1. Those percentages are for the
operating model. Do not add a capitalized “life of the agreement” royalty
into the Item 7 total. The FTC compliance guide treats future royalties as
outside Item 7; the worksheet should too.

On a third sheet, list personal living expenses for the owner household
during the ramp, as the FTC consumer guide advises, for up to two years.
That sheet is not a row in Item 7. It is why a store that “fits” the high
total can still run the owner out of cash.

When the sheet is filled, the filing is still the filing. The quotes are the
project. The directory's generated tables remain a reference for what the
public Item 7 said, not a substitute for the document delivered fourteen days
before signing.

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HTML: https://donerhandbook.com/item-7-worksheet/