An earnings claim, also known as a Financial Performance Representation (FPR), is any information provided by the franchisor about potential or past financial performance of its franchise units. In the U.S., this information is disclosed in Item 19 of the Franchise Disclosure Document (FDD). Not all franchisors provide an earnings claim, and those that do must back it up with reliable data and include appropriate disclaimers. Prospective franchisees should review this information carefully and ask clarifying questions during due diligence to understand the assumptions behind any projections.
Earnings Claim
This term
An earnings claim refers to any statement about the potential financial performance of a franchise.
Joe Bailey
Lead Franchise Advisor & Owner
At Franchise Reports, the goal is simple: help you find better franchises.
