What Is Item 19 in the Franchise Disclosure Document?
If you’re thinking about buying a franchise, there’s a lot of paperwork to get through. One of the most important documents you’ll see is the Franchise Disclosure Document, or FDD.
And inside that giant packet of info, Item 19 is probably the section you want to pay closest attention to.
Why Item 19 Matters
Item 19 is all about the actual performance of current franchisees. It shows real numbers — like revenue, expenses, and sometimes profits — from franchises just like the one you’re thinking about opening.
This isn’t just fluff or sales talk. It’s data based on real franchisees’ experiences over the past year. So, it gives you a snapshot of what your business could look like.
If you want to make a smart decision, this is the section to focus on.
What You’ll Find in Item 19
Not every franchise includes Item 19, but when they do, here’s what you can usually expect:
Average gross sales numbers
Range of sales for different locations
Sometimes expenses or earnings (though not always)
Other performance indicators that matter to that brand
Keep in mind: this info is historical, so it doesn’t guarantee future results. But it does give you a clearer picture than just marketing materials or promises from the franchisor.
Don’t Stop There — Call Franchisees
Numbers only tell part of the story. The best way to really understand a franchise is to talk to people running them.
Calling current franchisees gives you:
Honest feedback on daily life running the business
Tips on what works (and what doesn’t)
Insight on how much support the franchisor provides
Real talk about challenges and wins
Franchisors should give you a list of franchisees to contact. If they don’t, that’s a red flag.
Why This Matters for You
Buying a franchise is a big decision. You want to invest your money wisely and avoid surprises.
By focusing on Item 19 in the FDD, and reaching out to current franchisees, you’re giving yourself the best chance to:
Understand what success looks like
Avoid businesses that aren’t a good fit
Set realistic expectations for growth
Back to the Start: Why Item 19 Is So Important
So, in short: Item 19 is a goldmine of info. It’s your peek behind the curtain at real franchise performance.
Don’t just skim over it or skip it. Dig in, make some calls, and get a feel for what life might actually be like running that franchise.
That way, you can make your franchise dreams a little less scary and a lot more informed.
*This is not an offer to sell a franchise. Franchise offerings are made only through the delivery of a Franchise Disclosure Document (FDD)*
