Buying a franchise is a big deal.
Before you commit to opening a Success On The Spectrum (SOS) center, you need to actually know what you’re getting into. What you’re buying. What it’ll cost. What they want from you. What they’re going to do for you.
That’s where the FDD comes in.
An FDD is basically a standard way to look at all these details before you commit. The FTC has a rule that says franchisors have to give you one. It’s got 23 specific disclosure items covering fees, obligations, litigation, financial information, franchisee relationships, and more.
For an ABA franchise, that FDD review means you’re also digging into clinical staffing, licensing, insurance reimbursement, what your facility needs to look like, and how they oversee the clinical side.
The FDD isn’t just paperwork to sign off on. It’s your due-diligence tool.
An FDD is basically a standardized form that lays out what you need to know about a franchise before you commit.
The FTC has a rule about it. Franchisors have to give it to you at least 14 days before you sign the document. It’s designed to help you actually figure out if this is the right move.
The FDD covers the big stuff like:
The FTC recommends reviewing all 23 items and asking questions when something is unclear.
An ABA franchise involves considerations beyond a typical business franchise, including:
Understanding these factors can help you evaluate the franchise beyond its initial investment.
FDD: Tells you what you need to know to make a decision.
Franchise Agreement: It is the legal contract that establishes your relationship with SOS, including your rights, responsibilities, fees, restrictions, renewal, and termination terms.
The FDD doesn’t replace the contract. You have to read both. Talking to a lawyer and an accountant before you sign is just smart.
|
# |
FDD Item |
What to Evaluate |
| 1 | The Franchisor | Company history, ownership, parents, predecessors, and affiliates |
| 2 | Business Experience | Leadership and management experience |
| 3 | Litigation | Lawsuits, claims, and legal disputes |
| 4 | Bankruptcy | Bankruptcy history |
| 5 | Initial Fees | Initial franchise and other upfront fees |
| 6 | Other Fees | Royalties, marketing, technology, and other recurring fees |
| 7 | Estimated Initial Investment | Total estimated cost to open and operate initially |
| 8 | Restrictions on Sources | Required suppliers and purchasing restrictions |
| 9 | Franchisee Obligations | Your contractual responsibilities |
| 10 | Financing | Financing offered or arranged by the franchisor |
| 11 | Franchisor Assistance | Training, support, technology, advertising, and assistance |
| 12 | Territory | Territory rights, limitations, and protections |
| 13 | Trademarks | Brand and trademark rights |
| 14 | Patents, Copyrights & Proprietary Information | Intellectual property protections and restrictions |
| 15 | Obligation to Participate | Owner involvement and management requirements |
| 16 | Restrictions on What You May Sell | Products, services, and operating restrictions |
| 17 | Renewal, Termination, Transfer & Dispute Resolution | Contract term, exit rights, renewal, transfer, and termination |
| 18 | Public Figures | Public figures used in promoting the franchise |
| 19 | Financial Performance Representations | Revenue, sales, or other financial performance information, if disclosed |
| 20 | Outlets & Franchisee Information | Openings, closures, transfers, terminations, and franchisee contacts |
| 21 | Financial Statements | Franchisor financial condition |
| 22 | Contracts | Agreements you may be required to sign |
| 23 | Receipts | Confirmation that you received the FDD |
The FTC requires these 23 disclosure categories under its Franchise Rule.
Not every item carries the same weight for every buyer. For an ABA franchise, several deserve particular attention.
Look at:
Ask: Does the franchisor have meaningful experience supporting ABA centers?
Review lawsuits, franchisee disputes, and regulatory matters.
One lawsuit does not automatically make a franchise a bad investment. Look for patterns and ask questions about anything that concerns you.
Review the complete fee structure, including:
Don’t evaluate the opportunity based only on the initial franchise fee. Look at the total cost of operating an SOS center.
Review costs for:
Separate the cost to open from the cash needed to operate while the center ramps up.
Ask how the franchisor calculated its estimates and which costs can vary by market.
For a first-time ABA franchise owner, Item 11 deserves close attention.
Look for support with:
Site selection, center design, licensing, recruiting, and business planning.
Training, hiring, marketing, technology, and operational setup.
Operations, marketing, training, quality assurance, and ongoing performance support.
Key question: Is the support specific enough to understand what you are actually receiving?
For an ABA center, territory can affect client access, referrals, staffing, and growth.
Evaluate:
Ask: What protections apply to my territory, and how could the market change as the SOS network grows?
Also research local demand, competition, referral sources, staffing availability, and potential clients.
ABA franchise ownership is not necessarily passive.
Review:
You do not necessarily need to be a BCBA to own an ABA franchise. At SOS, owners focus on leading the business while qualified clinical professionals provide and supervise clinical services.
Understand exactly what will be your responsibility and what will be handled by your clinical team.
Review:
Ask:
Can I realistically sell or transfer the franchise if my circumstances change?
Item 19 can be one of the most important sections of the FDD.
If financial performance information is provided, examine:
A center can generate substantial revenue while also carrying significant payroll, rent, insurance, clinical, administrative, and other operating expenses.
Ask:
How many locations achieved the reported results, and are the results representative of a typical location?
Do not treat financial performance information as a guarantee.
Item 20 shows franchise openings, closures, transfers, terminations, and other changes.
A growing franchise system is not automatically a healthy one.
Look at:
Speak with a mix of:
Their experiences can provide context that the FDD alone cannot.
Review the franchisor’s financial statements for:
The franchisor’s financial health matters because franchise owners depend on it for continued training, technology, marketing, operations, and other support.
An ABA franchise requires additional due diligence beyond standard franchise considerations.
Assess BCBA and RBT coverage, recruitment, training, and clinical leadership as well as turnover.
State regulations for providers, facilities, professional credentials, and clinical oversight
Ask about credentialing, payer relationships, reimbursement, denied claims, and the role insurance plays in revenue.
Examine referrals, marketing, physician and school relations, and community initiatives.
Become familiar with client abilities and employee needs, calendaring process, utilization principles, and ramp assumptions.
An ABA franchise is a business investment as well as a specialized operating environment.
The FDD cannot tell you:
That’s why an FDD review should be combined with:
Market Research + Franchisee Interviews + Financial Planning + Professional Advice
The goal isn’t simply to read the FDD. It’s to use the information to decide whether owning an SOS franchise fits your goals, resources, and expectations.
If you’re considering Success On The Spectrum, use the framework to evaluate:
|
Investment |
Current SOS Information |
|
Franchise fee |
$45,000 one-time fee |
|
Royalty |
5% of gross sales, capped at $5,000/month |
|
Marketing fee |
$0 |
|
Credentialing fee |
$0 |
|
Typical startup cost |
Around $500,000 |
|
Startup loan range |
Approximately $350,000–$800,000 |
|
Minimum liquid capital |
$100,000 |
|
Franchise term |
5 years, renewable |
|
Veteran discount |
15% off franchise fee |
SOS states that its startup estimate includes items such as the franchise fee, training, licensing, equipment, furniture, and six months of working capital. Costs can vary by location and other factors.
Don’t just read the FDD.
Use it to ask:
Then compare the answers with what is actually disclosed in the FDD.
What you are told and what is documented should make sense together.
Going through the FDD is part of figuring out if this is actually right for you.
If Success On The Spectrum is something you’re thinking about, the next step is learning more about what our model actually looks like, what you’ll need to put in, what they want from you, and what territories are available.
Talk to our SOS franchise development team. See if owning an SOS center could be your next move.
Explore The SOS Franchise Opportunity
Nichole Daher is an American entrepreneur, book author, autism advocate, and founder of Success On The Spectrum (SOS)-the first autism treatment franchise in the United States-known for its parent viewing rooms and quality-driven ABA services. She currently serves as CEO of SOS Franchising, where she provides support, resources, and opportunities for entrepreneurs to open their own Success On The Spectrum autism centers.
