What is an earnings claim?
Last reviewed July 6, 2026
An earnings claim — formally a financial performance representation — is any statement about how much a franchise's units make or could make. Under the FTC Franchise Rule it is lawful only in Item 19 of the FDD, with a reasonable basis and written substantiation behind it. A number quoted in conversation, email, or a webinar that isn't in Item 19 is an unlawful earnings claim — and a red flag about the system's sales culture.
The practical use: it hands you a script. When a salesperson floats a figure, ask "Where is that in Item 19?" A compliant system's answer points at the document; an evasive answer tells you how the system treats rules generally. Our owner-earnings guide covers what the lawful evidence can and cannot tell you.