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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United States
