Definition:
An Earnings Claim / Financial Performance Representation shows the estimated income you might earn from running a franchise. It’s based on real data from current or past franchise owners. This helps you understand what kind of sales or revenue could be possible if you follow the business model.
Use It in a Sentence:
Before signing with the franchise, Karen reviewed the Earnings Claim / Financial Performance Representation in Item 19 to see how other franchisees were doing.
Why Is Earnings Claim / Financial Performance Representation in Item 19 Important?
When you’re thinking about buying a franchise, it’s normal to wonder how much money you might make. That’s where the Earnings Claim / Financial Performance Representation comes in. Found in Item 19 of the Franchise Disclosure Document (FDD), this section shows real numbers from current or past franchisees.
Some brands skip this. But CoolVu includes it. They give you actual sales data so you’re not making a decision in the dark. While it doesn’t promise results, it gives you a strong idea of what’s possible if you follow the system.
The Earnings Claim/Financial Performance Representation may list average sales, ranges, or even costs. It’s one of the most useful tools when comparing franchises. With CoolVu, you get this up front, showing their commitment to being open and helpful.
This information helps you plan your future. You can talk to current franchisees, ask questions, and make smarter choices. If a brand won’t share this, it could be a red flag.
CoolVu wants you to succeed. They provide data that shows what’s been done and what could be done. That makes a big difference when starting your business in window films, wall graphics, or surface solutions.
Related Dictionary Terms:
- Franchisee: Someone who buys the rights to run a business from a franchise brand
- FDD (Franchise Disclosure Document): A legal document giving details about a franchise
- Item 7: Shows your estimated startup costs
- Turnkey Operation: A business that’s ready to run on day one
