Item 19 Financial Performance Representations - Reviewed Independently

reviewing Franchise Disclosure Document for due diligence

Objective analysis of franchise earnings claims to seperate marketing averages from economic reality

Download the FDD Review Checklist

Why This Matters

  • Former Procter & Gamble Finance Vice-President with 27 years of financial analysis experience

  • Reviewed Item 19 disclosures across multiple franchise systems

  • Independent - no broker or franchise commissions

Why an Independent FDD Review Matters

The FDD is meant to inform, but it often:

  • Leaves out unit-level realities

  • Presents averages that mask variability

  • Downplays long-term financial risks

  • Overstates earnings potential

  • Omits information about system-wide performance

A surface-level read is not enough.
You need a deeper, CFO-level assessment of what the numbers actually mean.

What We Analyze

    • Validate earnings claims through a deeper analytical lens

    • Back-test Item 19 using Item 21 (actual financials)

    • Develop high/mid/low scenarios for earnings and investment

    • Identify inconsistencies, optimistic assumptions, or red flags

    • Realistic cash needs during ramp-up

    • Break-even and cash burn

    • Hidden costs not always visible in the FDD

    • Sensitivity to rent, labor, working capital, etc

    • Closure rates, turnover patterns, and resale dynamics

    • Litigation history and operational weaknesses

    • Quality of leadership support, training, and maturity of the system

Book Your Free Call
analyzing a franchise disclosure document

Who This Is For

This service is designed for executives and professionals who want:

  • Clear, unbiased due diligence

  • A financial perspective rooted in real business experience

  • Someone who can translate FDD disclosures into actionable insight

  • Guidance that cuts through sales language and optimism bias

Whether you're exploring a single brand or comparing several, you’ll gain clarity grounded in data — not emotion or persuasion.

Why Franchise Clarity

We are not brokers and receive no commissions from franchisors.
Our role is simple: objective guidance that protects your time and capital.

You benefit from:

  • 27 years of Fortune 100 finance leadership

  • Experience analyzing multi-billion-dollar businesses

  • A rigorous, structured due diligence framework

  • First-hand understanding of franchising risks and realities

You get the kind of financial rigor most buyers never receive.

What You Receive

Every engagement includes:

✔ A full FDD deep-dive
✔ Item 19 analysis and financial interpretation
✔ A model of earnings potential under multiple scenarios
✔ A summary of risks, questions, and system dynamics
✔ A 1:1 session to review findings and next steps

You’re not just getting information — you’re getting clarity, confidence, and a process designed to help you make a smart, defensible decision.

franchise disclosure document due diligence

Here’s a Short Video that Can Help You Understand What to Look for In Item 19

Schedule a Consultation

If you're evaluating a franchise and want an objective perspective before making a commitment:

👉 Schedule a consultation

Or reach out directly:
billbeckham@franchiseclarity.net