Item 19 Definition in the Franchise Disclosure Document (FDD)

Definition:
Item 19 shows potential earnings and sales. It’s the part of the Franchise Disclosure Document (FDD) where a franchisor may share financial results from existing franchisees. This can include average revenue, high and low sales, or other key numbers. While it’s not required, it gives you a clearer picture of how the business is performing and what you might expect. Think of it as a helpful snapshot of real-world results.

Use It in a Sentence:
Before joining the franchise, Sarah read Item 19 of the FDD to understand how much other franchisees were making.

Why Are Item 19 Details Important?

Item 19 in a Franchise Disclosure Document (FDD) can help you decide if a franchise is a smart investment. It includes something called a Financial Performance Representation (FPR). This is where the franchisor may share real income and sales data from other franchise locations.

This part is optional—but very helpful when it’s there. It gives you a look at what the business could possibly earn. For example, if you’re looking at a CoolVu franchise that offers custom-printed wall graphics and architectural surfaces, Item 19 may show the average sales numbers or profits from existing CoolVu locations.

Of course, every location is different. Just because one franchise made a certain amount doesn’t mean yours will. But this section helps paint a clearer picture before you spend your money. It tells you how other franchisees are doing and what you might expect.