What is Item 19 of the FDD?
Item 19 is the FDD's financial performance representation — the only place a franchisor may lawfully present earnings information about its units. Publishing one is optional; if a franchisor does, the FTC Franchise Rule requires a reasonable basis and written substantiation. Quality ranges from unit-level medians with cost detail down to a single system-wide average revenue figure, so check the sample size and definitions before trusting any number.
Three questions expose a weak Item 19 fast: Is this revenue or profit? Median or average? And how many units are in the sample — all of them, or a favorable subset? Any earnings number quoted outside Item 19 is an unlawful earnings claim. Our guide to what franchise owners make walks through reading one against real costs.