Item 19
The section of the FDD where franchisors may provide financial performance representations, including average sales, costs, and profitability data. Not required but highly valued by prospective franchisees.
Related Terms
FDD
Franchise Disclosure Document - a legal document that franchisors must provide to prospective franchisees at least 14 days before signing any agreement, containing 23 items of disclosure including fees, obligations, and financial performance representations.
AUV
Average Unit Volume - the mean annual revenue per restaurant location, a key metric for evaluating franchise system performance and unit-level economics.
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Operations & Management