According to Item 19, under what conditions can financial performance information differing from that included in Item 19 be given by 1-800-GOT-JUNK?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
Source: Item 19 — Financial Performance Representations (FDD pages 42–48)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, Item 19 allows the company to provide financial performance information that differs from what is included in Item 19 under specific circumstances. This is in accordance with the FTC’s Franchise Rule, which permits franchisors to share details about the actual or potential financial performance of their franchised or franchisor-owned outlets, provided there is a reasonable basis for the information and it is included in the disclosure document.
Specifically, 1-800-GOT-JUNK? may provide differing financial performance information if they provide the actual records of an existing outlet that a prospective franchisee is considering purchasing. This allows potential franchisees to review concrete financial data from a specific location to assess its viability. Additionally, 1-800-GOT-JUNK? can supplement the information already in Item 19 by offering details about possible performance at a particular location or under specific circumstances. This could include providing insights into how a franchise might perform in a certain demographic area or under a unique operational model.
It is important for prospective franchisees to understand that any financial performance information received outside of Item 19 should be carefully scrutinized. The FDD advises that if a potential franchisee receives any other financial performance information or projections of future income, they should report it to 1-800-GOT-JUNK?'s management, the Federal Trade Commission, and the appropriate state regulatory agencies. This ensures transparency and helps protect franchisees from misleading or unsubstantiated claims. By adhering to these guidelines, 1-800-GOT-JUNK? aims to provide franchisees with reliable and relevant financial information to aid in their decision-making process.