How to Use FDDs to Generate Sales Leads From Franchisees

Back to Blog
How to Use FDDs to Generate Sales Leads From Franchisees

How to Use FDDs to Generate Sales Leads From Franchisees

If you’re a B2B franchise supplier or consultant, you know how challenging franchisee lead generation can be. Franchisees are often difficult to identify across scattered sources. There’s no simple public directory of franchise owners, and stitching together reliable contacts can feel impossible.

The good news: every franchisor provides a ready-made list of their franchisees—you just need to know where to look. The secret weapon is the Franchise Disclosure Document (FDD). Each FDD includes a list of current (and some former) franchisees with contact details. In other words, franchisors hand over a franchisee contact database in every FDD, giving you a built-in source of FDD sales leads. With this verified information, you can streamline prospecting and confidently reach out with quality B2B leads.

Where to Find Franchisee Contact Data in the FDD

Every FDD contains a section that is invaluable for lead generation: Item 20: Outlets and Franchisee Information. Within Item 20, franchisors disclose the names of current franchisees along with addresses and phone numbers. In practical terms, this is a list of existing franchise owners and how to contact them.

Item 20 also includes former franchisees—those who left the system in the past year (terminated or closed outlets). While this is helpful for franchise buyers doing diligence, these contacts are generally not worthwhile for vendor outreach. They’re no longer operating under the brand, so don’t waste time on closed units. Focus on the list of current franchisees; those are the active businesses most likely to need your product or service.

How to Evaluate Opportunities Before Outreach

System Size & Growth (Item 20)

Item 20 also provides outlet statistics for the past three years—openings, closures, transfers, and total units. This reveals growth trajectory. Some FDDs even show projected openings for the next year. A brand adding 50+ units annually is high-growth—meaning many new locations and bigger vendor needs. Flat or declining unit counts signal fewer near-term opportunities.

Average Unit Revenue or Profit (Item 19)

Item 19: Financial Performance Representations often includes average sales or other earnings data. Use these figures to qualify leads. If Brand A’s Item 19 shows $1.2M average unit revenue, its franchisees likely have the budget and urgency for your solution.

Territory Availability (Item 12)

Item 12: Territory explains territorial rights (exclusive vs. non-exclusive) and how areas are defined. This hints at saturation and expansion capacity. Large exclusive territories may mean fewer franchisees per region; non-exclusive or small territories can create denser clusters of locations. If you target specific regions, prefer systems that allow multiple units locally or show substantial territory still available.

Step-by-Step: Using FDD Data for Lead Gen

  • Download the franchisee list. Get the FDDs for brands you serve. Jump to Item 20 (or its exhibits) and extract the franchisee contact list.
  • Segment by location or territory. Group contacts by state, region, or city so reps can work their patch and so messaging can reflect local conditions.
  • Prioritize growth brands. Rank systems by Item 20 growth and Item 19 performance. Focus on brands adding the most units (and those projecting new openings).
  • Personalize outreach. Use FDD insights to tailor messages. Reference growth, performance, or timing. Show you understand their system—this isn’t a generic blast; it’s informed franchise sales prospecting.

Real-World Examples

Cleaning services → fitness franchises: A commercial cleaning supplier targets gym brands. By combining FDDs from several fitness systems, they instantly compile 1,500+ franchisee contacts. Using Item 20 growth data, they focus only on chains adding 50+ new units per year. Outreach highlights grand opening support and recurring nightly cleans.

POS tech → restaurant franchises: A POS provider downloads FDDs for quick-service chains and builds a list of 2,000+ owners. They filter by brands showing $1M+ average unit sales (Item 19) and consistent expansion (Item 20).

Signage supplier → retail franchises: A signage company creates a contact list of 800+ retail franchisees across multiple systems. They highlight brands with dozens of projected new openings. Outreach lands right before build-outs.

In Summary

The FDD isn’t just a compliance document—it’s a lead generation engine. Mine Item 20 for franchisee contact lists, use Item 19 to gauge buying power, and read Item 12 to understand territory dynamics.

GetFDD turns FDDs into a ready-to-use lead list — no manual scraping, no wasted hours. Instantly access franchise disclosure documents and extracted location lists, then export your franchisee contact list in minutes.

Download FDDs & Lead Lists