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

Fresh Coat

Photo of Fresh Coat vehicle with ladders on top

The Rise of Home Improvement Franchises: Why Now Is the Time to Invest

why-invest-home-improvement-franchise-fresh-coat

HomeTeam Inspection Service

Photo of HomeTeam inspector in red polo and khaki pants, walking by branded vehicle

Real Estate Today: Behind the Drywall: The Truth About Home Inspections

purpose-of-home-inspection

Dog Training Elite

Dog Training Elite Franchise - DTE - National Service Dog Month - 1851 Franchise

Celebrating Service Dogs: Why Proper Training Changes Lives — And How Dog Training Elite Is Leading the Way

dog-training-elite-national-service-dog-month

Senior Care Authority

How This Senior Care Authority Franchisee Turned Love for His Grandparents Into a Lifelong Calling

how-this-senior-care-authority-franchisee-turned-love-for-his-grandparents-into-a-lifelong-calling

Hometown News: Like Father, Like Son — Family-Run Inspection Business Blends Generations of Expertise and a Keen Eye for Detail

father-son-home-inspection-franchise-florida

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

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

1851 Franchise Deep Dive graphic with Sparkle Squad logo

Sparkle Squad Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-sparkle-squad-franchise-costs-fees-profit-and-data

graphic image of a financial deep dive of americas swimming pools co.

America’s Swimming Pool Company Franchise Costs, Fees, Profit and Data for 2025

americas-swimming-pool-asp-franchise-deep-dive

image of The Cleaning Authority Franchise Deep Dive Article financial investment details

The Cleaning Authority Franchise Costs, Fees, Profit and Data for 2025

the-cleaning-authority-franchise-deep-dive

Jollibee -Launch-Story-Brand-Page-Deep-Dive-2025

Jollibee Franchise Costs, Fees, Profit and Data for 2025

jollibee-franchise-costs-fees-profit-and-data-for-2025

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

DevHub - Meet the Supplier - 1851 Franchise

DevHub: Scalable Digital Marketing for Franchises and Multi-Location Brands

devhub-meet-the-supplier

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Multi-Unit Wendy’s Operator Signs 12-Unit Deal With Layne’s Chicken Fingers

ricki-oberoi-laynes-chicken-fingers-growth

Design with school-aged child standing on pencil with text "Education Franchises" and "<$500K"

Top Education Franchises Under $500K To Explore in 2025

top-education-franchises-under-500k

What Is FDD Item 19?

MORE STORIES LIKE THIS