Item 19, also known as the “earnings claim” or “financial performance representation,” is a crucial section in a franchise disclosure document (FDD). It provides potential franchisees with information about the actual or potential financial performance of the franchise opportunity. However, the Federal Trade Commission (FTC) regulates the use of Item 19 disclosures to ensure […]
Presenting the Franchise Disclosure Document (FDD) is a critical step in the franchise sales process. The FDD contains essential information about the franchise system, its operations, and legal obligations. Here are some steps to effectively present the FDD to potential franchisees: 1. Schedule a Meeting Arrange a meeting with the potential franchisee to present […]