Item 19 – Financial Performance Representations

What Item 19 Covers

Item 19 of the FDD is where a franchisor may choose to share financial performance information about its franchise locations. This can include sales, revenue ranges, averages, medians, or other indicators of financial performance.

Not All Brands Provide Item 19

Item 19 is optional. Many responsible franchisors include one because it helps prospects make informed decisions. Brands that skip Item 19 may do so for several reasons, including being too new or having inconsistent performance data.

What to Look For

A great Item 19 should answer:

• How many units the data represents

• Whether the numbers are averages, medians, or both

• Whether the results include corporate-owned stores

• If expenses or net profits are included

• How consistent performance is across the system

How to Use Item 19 When Comparing Brands

Use Item 19 as one of several evaluation tools. Always compare:

• Unit economics

• Year-over-year performance

• Percentage of units hitting or missing targets

• How results align with what franchisees report during validation

Why Item 19 Matters

It provides clarity on system health, scalability, and earning potential. While it doesn’t guarantee your results, it offers valuable insight into expected performance.

Legal Disclaimer

This content is for informational use only and does not constitute financial, legal, or investment advice. Always speak with qualified professionals before making decisions based on Item 19 or any financial representation.