# FDD Item 8 coding codebook (franchise-supplier-rebates, 2026-10-08)

Unit: one FDD per brand from the 259-brand Minnesota CARDS sample published with /research/franchise-royalty-rates/.
Source text: Item 8 ("Restrictions on Sources of Products and Services") cut from pdftotext -layout output
(`scripts/01_extract_item8.py`). Where the cut looked incomplete, coders opened the full FDD text.

Record ONLY what the FDD says. Never guess. `null` when the FDD does not state a value. Numbers are plain
numbers (39950, not "$39,950"; 4.5, not "4.5%"). If the FDD offers several formats, code the standard
single-unit format presented first and say so in `notes`.

## Fields

| Field | Values | Rule |
|---|---|---|
| doc_id, brand | text | Copied from the packet header. |
| item8_found | yes / no | no = Item 8 could not be found even in the full text. |
| supplier_restriction | approved / specs_only / none | **approved** = the franchisee must CURRENTLY buy or lease at least one good or service (inventory, equipment, software, signage, build-out, insurance broker, training, anything) from the franchisor, an affiliate, or a designated or approved supplier (a named or listed source the franchisor chooses or must approve). **specs_only** = only standards/specifications; the franchisee may buy from any source that meets them. **none** = no required sources and no specifications. A right reserved for the future ("we may designate") does not make it approved by itself. |
| reserve_right_designate | yes / no | The FDD reserves the right to designate suppliers, or to make the franchisor/affiliate a (sole) supplier, in the future. |
| franchisor_supplier | yes / no | The franchisor itself is CURRENTLY an approved, designated or required supplier of any good or service. |
| affiliate_supplier | yes / no | An affiliate or parent of the franchisor is CURRENTLY an approved, designated or required supplier. |
| fa_sole_supplier | yes / no | The franchisor or an affiliate is CURRENTLY the only approved supplier of at least one item. |
| fa_items | text, max 12 words | What the franchisor/affiliate supplies (e.g. "proprietary coffee, cups, POS software"). null if neither supplies. |
| officer_interest | yes / no / not_stated | An officer of the franchisor owns an interest in a required/approved supplier (ownership of the franchisor itself or an affiliate supplier counts if the FDD says so). |
| pct_startup_low, pct_startup_high | number % | Required purchases as a share of ALL purchases to ESTABLISH the business, as stated. Single figure "about 60%" -> 60, 60. Range "70% to 80%" -> 70, 80. "less than 10%" / "up to 10%" -> 0, 10. "more than 90%" / "at least 90%" -> 90, null. One figure stated for establishing AND operating -> same values in both startup and ongoing. |
| pct_startup_text | text | Verbatim phrase, max 20 words. |
| pct_ongoing_low, pct_ongoing_high, pct_ongoing_text | as above | Same, for purchases in OPERATING the business. |
| fr_revenue | received / none / not_stated | Did the FRANCHISOR ITSELF derive revenue or other material consideration from franchisees' required purchases or leases (sales to franchisees, markups, rebates, commissions, supplier payments) in its last fiscal year? received = says it did (with or without an amount, including amounts > 0). none = says it did not, or states $0. not_stated = silent or only says it "may". |
| fr_rev_amount | number $ | Franchisor revenue from required purchases in the last fiscal year as stated (if the FDD gives separate lines, e.g. product sales and supplier rebates, put the SUM here and the parts in notes). null if no figure. 0 if stated as $0. |
| fr_total_revenue | number $ | Franchisor total revenue for the same year if Item 8 states it. |
| fr_rev_pct | number % | Share of franchisor total revenue as stated in Item 8 (do not compute it yourself). |
| rev_fiscal_year | YYYY | Fiscal year the revenue figure refers to. |
| aff_revenue | received / none / not_stated | Same as fr_revenue, for affiliates. |
| aff_rev_amount | number $ | Affiliate revenue from franchisee required purchases, if stated. |
| rebates | received / may_receive / none / not_stated | Payments FROM SUPPLIERS to the franchisor or affiliates (rebates, allowances, commissions, volume discounts, marketing or promotional payments, referral fees, "consideration") on account of franchisee purchases. **received** = the FDD says the franchisor/affiliate currently receives, or received in the last fiscal year, such payments (amount optional). **may_receive** = reserves the right, or says it may receive them, but does not say any were received (also "none received last year but may in future"). **none** = says it does not receive them and reserves nothing. **not_stated** = Item 8 is silent on supplier payments. |
| rebate_amount | number $ | Dollar amount of supplier payments specifically (if stated separately). 0 if stated as $0. |
| rebate_rate_low, rebate_rate_high | number % | Rebate rate as % of purchases, if stated (e.g. "1% to 5% of purchases" -> 1, 5). |
| rebate_rate_text | text | Rate or basis as worded (e.g. "$0.25 per case"), max 20 words. |
| rebate_use | list | Semicolon list from: unrestricted (franchisor may keep and use for any purpose / no obligation to share), ad_fund (some or all put into the brand or advertising fund), shared_franchisees (passed back or credited to franchisees), conferences_training (used to fund conventions, training, events), offset_costs (used to offset supply program or administrative costs), not_stated. Code only what the text says. |
| coop | yes / no / not_stated | A purchasing or distribution cooperative currently exists for the system. |
| negotiated_arrangements | yes / no / not_stated | The franchisor currently negotiates purchase arrangements (including price terms) with suppliers for the benefit of franchisees. |
| material_benefits | yes / no / not_stated | The franchisor grants or withholds material benefits (renewal, additional units) based on whether the franchisee uses approved/designated suppliers. |
| evidence_rev | text | Verbatim quote, max 45 words, with the revenue/rebate statement (null if none). |
| evidence_pct | text | Verbatim quote, max 30 words, with the percentage statement (null if none). |
| confidence | high / medium / low | |
| notes | text | Anything a checker should know (typos, contradictions, format chosen, revenue parts). |

## Edge rules

- A typo that contradicts the rest of Item 8 (e.g. "we do derive any revenue" next to "no revenue") is coded by the
  clear meaning only when the rest of the text settles it; otherwise not_stated, with a note.
- Revenue from Item 6 fees (royalty, technology fee) is NOT required-purchase revenue unless Item 8 counts it.
- Insurance purchased through a required broker counts as a required purchase (approved).
- "Approved supplier list; other suppliers only with our prior approval" = approved.
- Computing: never compute percentages or totals that the FDD does not state; the analysis script does that.
- Text fields: en and em dashes inside verbatim quotes are replaced with a plain hyphen (house style); nothing else in a quote is altered.