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What language must be present in an FDD if I do not plan on providing financial performance representation in Item 19?

 

A: Financial performance representation if being represented in the FDD for your franchised business must be included in Item 19 of the Franchise Disclosure Document. If you do not plan on disclosing financial performance representation information you must use the following language according to the Federal Franchise Rule:

We do not make any representation about a franchisee's future financial performance or the past financial performance of company-owned or franchise outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting [name, address and phone number], the Federal Trade Commission, and the appropriate state regulatory agencies.  
 




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