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Posts Tagged ‘Item 19’

Franchise financial information: Can I trust it’s accurate?

When researching franchise opportunities, you’ll spend a significant amount of time reviewing franchise financial information. And it’s common to wonder: can I trust the information that franchisors provide? Fortunately in this case, the Federal Trade Commission strictly regulates franchise sales. Statutes and regulations govern the franchise sales process, as well as the documents and disclosures…

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FDD Item 19: Earnings Information

When researching franchise opportunities, it’s important to examine Item 19 in a franchisor’s Franchise Disclosure Document (FDD). Indeed, the first question most prospective franchisees ask a franchisor is, “How much money can I make in this business?” Since the U.S. Federal Trade Commission (FTC) passed the franchise compliance rules in 1979, some franchise companies may…

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