#15: What are Item 19 Financial Performance Representations? | Franchise Your Business

Everyone wants to know how much they can make when they buy a franchise. For franchisors who want to sell franchises, few things are more important than an Item 19 Financial Performance Representation in their FDD.   What is an Item 19 Financial Performance Representation? It's any statement whether it's public, private, oral, or written about sales, income, or profits. This includes historical, actual, or projected financial data (including pro formas).    So what happens when a franchisee candidate asks, "How much can I make", "What are your sales", or "What are your profits"?  THE RULE As a franchisor, you CANNOT provide financial performance representations UNLESS it's disclosed in your FDD Item 19 and it has to be representative of the franchised business. If you want to learn more about franchising or are looking for a community of supportive franchise industry professionals… READ MORE: https://www.franchiselawsolutions.com/learn/franchise-your-business/financial-performance-representations SUBSCRIBE to our Channel: https://www.youtube.com/channel/UC4ML... CONTACT US: https://www.franchiselawsolutions.com/ JOIN Franchise Growth Mastermind Community: https://www.facebook.com/groups/14645... LIKE us on Facebook: https://www.facebook.com/entrepreneur... FOLLOW us on Instagram: https://www.instagram.com/entrepreneu...