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What is an FDD Item 19 Financial Performance Representation?

Item 19 of a franchisor's franchise disclosure document (FDD) refers and relates to the mandatory disclosure of financial performance representations made by the franchisor to prospective franchises. Franchisors are not required to make financial performance representations and if such representations are made they must be disclosed in the FDD and the franchisor must possess a "reasonable basis" to make such representations.

Charles Internicola

by Charles Internicola
National Business and Franchise Lawyer

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