1851

When a prospective franchisee sets out on the path to joining a brand, their intent is to own a business in a given territory and be successful. With this goal in mind, any prospective franchisee considering joining a brand should carefully review Item 19: Financial Performance Representations. This section,&nbsp;<a href="https://1851franchise.com/how-to-make-sense-of-item-19-in-an-fdd-2714788#stories">also known as the Earnings Claim,</a> addresses return on investment and showcases just how profitable a franchise owner can expect to be.&nbsp;While the data in Item 19 is incredibly helpful to have, a prospective franchisee should be aware that a franchisor is not required to provide financial performance representations. And if the franchise does provide information in Item 19, it’s also important to note that there is no standard for how this information should be represented. The information listed&nbsp;<a href="https://1851franchise.com/the-franchise-bible-item-19-2703090">can vary</a> from brand to brand.&nbsp;If a franchise does provide the financial performance representations in its Item 19, the section can be a great way for a franchisee to measure what they’ve heard throughout the entire sales and exploration process by seeing the numbers on paper.&nbsp;<a href="https://1851franchise.com/5-reasons-why-item-19-is-important-in-a-franchise-disclosure-document-2708095#stories">The section is more or less a barometer</a> against which to measure the information they have heard verbally over the course of the sales process. The franchisee can then study the final document from the brand to make their decision. Additionally, Item 19 allows for a shorter due-diligence process because franchisors are providing information about highly efficient units — such as those located in malls, kiosks, strip malls and different size restaurants — which allows a prospective franchisee to know what footprints are the most productive and seek out that same model.&nbsp;And while Item 19 isn’t necessarily indicative of future performance, it is a telling benchmark for what the prospective franchisee might expect once they become a franchisee. The section builds transparency and is an important data point for prospective franchisees to understand the brand’s business model. Ultimately, it can help them put together their business plan.&nbsp;

What Is FDD Item 19?

1851 Franchise

Item 19, Financial Performance Representations, addresses return on investment, showcases just how profitable a franchise owner can expect to be and how transparent the franchisor is.

what-is-fdd-item-19

Layne's Chicken Fingers

Photo of exterior of Layne's Chicken Fingers restaurant

Layne’s Chicken Fingers Signs Landmark 44-Restaurant Deal, Shatters Records in Monumental Third Quarter

laynes-chicken-franchise-growth-records

Children's Lighthouse

Why Children’s Lighthouse Is a Great Opportunity for Swim School Franchisees

why-childrens-lighthouse-is-a-great-opportunity-for-swim-school-franchisees

Children’s Lighthouse Closes the Third Quarter with Record Franchise Signings and New School Opening

childrenslighthouse-q3-2025-growth

Pet Wants

How Pet Wants Is Redefining the Customer Experience in the Pet Industry

pet-wants-redefining-customer-experience

Jollibee

How Much Can You Really Make With a Jollibee Franchise? Inside the Numbers of Item 19

how-much-can-you-really-make-with-a-jollibee-franchise-inside-the-numbers-of-item-19

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Thursday 1851 Franchise Agg - NASAA’s Noncompete Push

NASAA’s Noncompete Push Puts Franchise Growth on Uncertain Ground

franchise-noncompete-nasaa-advisory-reasonableness-standard

How a Steady Economy Could Help Franchisors Plan Their Next Move

how-a-steady-economy-could-help-franchisors-plan-their-next-move

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

U.S. Government Shutdown - Impact on Franchises - 1851 Franchise

Government Shutdown Stalls SBA Loans: How the Shutdown Could Impact Franchises

government-shutdown-impacts-sba-loans-tourism-franchises

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

image of mellow mushroom deep dive into financials article from 1851 franchise

Mellow Mushroom Franchise Costs, Fees, Profit and Data for 2025

mellow-mushroom-franchise-deep-dive

How goGLOW Turned Clean Beauty Into a Scalable Franchise and Why It’s Accelerating Now

goglow-clean-beauty-tanning-franchise

Shoot 360 Aims for the Topgolf Model, Using Elite Basketball Tech to Appeal to Players '7 to 70'

shoot-360-franchise-growth-tech-basketball-brad-butterworth

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

graphic image of an 1851 franchisee spotlight brayden and johnny steven of teriyaki madness

Father-and-Daughter Team Bring Teriyaki Madness to Wichita, Kansas, With Big Expansion Plans

johnny-brayden-steven-teriyaki-madness-wichita

1851 Franchisee Spotlight graphic with photo of Barb Volk and KidStrong logo

Why This Orangetheory Fitness Franchise Owner Is Developing KidStrong Franchises

kidstrong-franchise-owner-barb-volk-2025

What Is FDD Item 19?

MORE STORIES LIKE THIS