Item 19 (Financial Performance Representation)

Item 19 of the Franchise Disclosure Document is the section where a franchisor may voluntarily disclose financial performance data about its franchise outlets. Unlike other FDD items that are mandatory disclosures, Item 19 is optional. When provided, it typically includes average or median revenue figures, cost breakdowns, and profit margins for company-owned and franchised locations. According to franchise industry data, approximately 30-40% of franchisors include an Item 19 disclosure, making it one of the most valuable but least available pieces of information for prospective franchisees evaluating a brand's economic potential.