If the franchisor makes a financial performance representation - also called an FPR - in Item 19 of its FDD, you or the franchisor may furnish to a prospect a supplemental FPR about a particular location or variation.

For example, if the FPR in the FDD gives average sales and cost information for all outlets in a system and the prospect is considering an urban location, the supplemental FPR could focus on the sales and costs of just urban outlets in the system.

The supplemental FPR may be a document separate from the FDD, but must:

• be in writing

• explain the departure from the FPR in the FDD

• be prepared in the same manner as a standard FPR

• be furnished to the prospect.

If you would like to know if you can franchise your business, connect with me on LinkedIn and give me a call.

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