Franchise Glossary
Earnings Claims
Financial performance representations made by a franchisor about what franchisees may earn.
Earnings claims, formally known as Financial Performance Representations, are found in Item 19 of the FDD. Franchisors are not required to include Item 19 data, but if they make any earnings claims, they must do so in this section and provide a reasonable basis for the claims. Be cautious of any franchisor representative who shares earnings information outside the FDD — this is a violation of the FTC Franchise Rule.
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