Franchise Glossary
Item 19
The FDD section where franchisors may disclose financial performance data about their franchise units.
Item 19 is the only place a franchisor can legally make financial performance representations (earnings claims). Not all franchisors include Item 19 data — it is optional. When present, it may show average or median revenue, gross profit, net income, or other financial metrics for franchised and/or company-owned units. However, the format varies widely, and some franchisors present data in ways that can be misleading. Cross-reference Item 19 data with what franchisees tell you on validation calls to build realistic projections.
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