Franchises With Item 19 Financial Data

What Is Item 19 in a Franchise Disclosure Document?

Item 19 of the Franchise Disclosure Document (FDD) is titled “Financial Performance Representations.” This is the only section where a franchisor is legally permitted to provide prospective franchisees with information about the actual or potential financial performance of its franchise units. This can include gross revenue figures, net profit data, average unit volumes, cost of goods sold percentages, and other earnings-related metrics.

The Federal Trade Commission (FTC) regulates franchise disclosure under the Franchise Rule. While franchisors are not required to include financial performance data in Item 19, any financial claims they do make must have a reasonable basis and be presented in the FDD. Franchisors who choose not to provide this information must include a statement that they do not make any financial performance representations.

For prospective franchisees, Item 19 is often considered the most valuable section of the entire FDD. Understanding the financial performance of existing franchise units can help you build more accurate pro forma financial projections, evaluate whether the franchise investment aligns with your financial goals, and compare opportunities across different franchise brands.

Franchises that voluntarily disclose financial performance data demonstrate a level of transparency that can be a positive signal during your due diligence process. However, it is important to read Item 19 disclosures carefully — the data may represent company-owned locations only, a subset of franchise units, or use metrics that may not reflect the full picture of profitability.

Always review the specific assumptions, definitions, and limitations stated in the Item 19 disclosure. Consider supplementing this data by speaking directly with current and former franchisees listed in Item 20 of the FDD.

The 136 franchises listed on this page have all provided financial performance representations in their most recent FDD filing. Click on any franchise to view the complete FDD analysis report, which includes a breakdown of the Item 19 data along with initial investment requirements, ongoing fees, system size trends, and more.

Use this directory to identify franchises that offer the financial transparency you need to make an informed investment decision. You can compare franchise fees, investment ranges, and unit counts across brands — all with free access to the underlying FDD data through FreeFDDs™.