This refers to the “Financial Performance Representation” (FPR) part of an FDD (Franchise Disclosure Document). This section of an FDD offers financial data on actual or potential performance of franchised and/or company units. The FPR typically offers revenue, gross sales, profits, expenses, other key financial data regarding a franchise system’s financial performance. The franchisor’s data is typically deemed accurate due to professional review and audit requirements, and will often include assumptions, and offer related explanations. Approximately 70% of Franchisors provide an Item 19. Mature franchise systems have much greater detail and history, whereas emerging franchises offer less due to limited experience, data and history.
