GLOSSARY
Financial performance representation (FPR)
An FPR is the earnings claim a franchisor may make in FDD Item 19 — the only place it can legally state what units earn, under a methodology it chooses.
When a franchisor discloses earnings, the number arrives with choices attached: which units were included (excluding closed, new, or company-run units is common), which measure is shown (gross sales far more often than profit), and which period. All of it must be disclosed in the fine print of Item 19 — which is why the methodology paragraph matters more than the headline average.
The questions that cut through: does the average include every unit open at any point in the year? Is it sales or owner earnings? And would the franchisor's own company-run units hit that number?
Related