Item 19 FPRs: Report Shows the Value of Financial Transparency
Company Added
Company Removed
Apply to Request List

Item 19 FPRs: Report Shows the Value of Financial Transparency

Item 19 FPRs: Report Shows the Value of Financial Transparency

For years, franchise sales and development experts have been beating the drum for franchisors to provide financial performance representations (FPRs) in their FDDs - not only for more systems to provide these crucial numbers, but also for franchisors to provide more detailed numbers in their Item 19 disclosures, especially expenses. Now a report from puts numbers to that belief, showing that brands providing FPRs grew by a larger margin over time than those that didn't.

FranchiseGrade analyzed 1,905 franchise systems from 2010 to 2016 to identify performance results, comparing franchises that provided Item 19 information with those that didn't. The results indicated that franchise systems that provided FPRs grew by 13.8 percent, while those that did not declined by.02 percent. Further, according to the report, franchisors that provided expense data in their Item 19 grew by the largest margin: 18.4 percent.

"The results of our research validated our belief that franchisors that provide financial transparency through their Item 19 have a distinct advantage over those that don't," said Jeff Lefler, CEO of "Franchisee candidates seek and require financial information to better evaluate a franchise opportunity," he continued. "The data shows that those franchise systems without an Item 19 haven't grown. But until we see the franchisee results of these systems, the reasons why are assumed but not verified."

To learn more, download the report free of charge.

Published: December 5th, 2016

Share this Feature

Brooklyn Fitboxing
Brooklyn Fitboxing
Brooklyn Fitboxing

Recommended Reading:


comments powered by Disqus
Young Engineers


Jersey Mike's Subs
InterContinental, Atlanta
OCT 15-17TH, 2019

ApplePie Capital provides a fresh new approach to franchise financing that is focused on your growth and success. We provide access to quick and...
MGH is an ad agency. A PR agency. An interactive agency. A social media marketing agency. A fun agency. Celebrating 24 years in the industry, we're...

Share This Page

Subscribe to Franchise Leadership & Development Report

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2019.
All Rights Reserved.