The Elusive Earnings Claim

Government Requires Franchisors Provide Some Info, but Not Franchise Earnings

Tuesday, September 08, 2009

By Annie Barbarika

As it is optional for franchisors to include an earnings claim statement (Item 19) in their Franchise Disclosure Document (FDD), and as there is no set format for how this information should be released, it can be very difficult for prospective franchisees to get an accurate idea of the income they could make if they purchased a franchise. Don Sniegowski, president of BlueMauMau.org, gives an in-depth look the issue of publishing earnings claim statements, and why franchisors should consider releasing this information in their future FDDs.

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