How Franchisors Manipulate Item 19 to Mislead Investors

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Franchise Findings by Vetted Biz

Vetted Biz | 7,000+ Franchises With Unbiased Insights

620 episodes

1 week ago

Insights and data to help first-time franchise buyers and seasoned investors make informed decisions. Expect weekly interviews with franchise leaders and daily franchise analyses. With Patrick Findaro as your host, Franchise Findings is your go-to source for vetted franchise information. Join the Vetted Biz community for even more franchise data and insights.

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How Franchisors Manipulate Item 19 to Mislead Investors

Franchise Findings by Vetted Biz

8 minutes 58 seconds

12 months ago

How Franchisors Manipulate Item 19 to Mislead Investors

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Item 19 of the Franchise Disclosure Document (FDD) is critical for anyone considering a franchise. But did you know franchisors can manipulate this section to paint a more favorable picture of potential earnings? In this episode, we dive into the financial distortion tactics used in Item 19 that every franchise buyer should be aware of. From skewed averages to selective data and “gross revenue” distractions, we expose common tricks that could cloud your judgment. If you’re planning to buy a franchise, understanding these tactics will protect your investment. Learn how to read between the lines, ask the right questions, and get a realistic view of what franchise ownership might truly entail.

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