How Today’s Franchise Content Is Stretching FPRs and What Ethical Brands Must Do to Regain Control
Franchise development has entered a new era. Financial data no longer stays inside Item 19 of the Franchise Disclosure Document (FDD). Today, these numbers are being repackaged, reinterpreted, and redeployed across email campaigns, social media posts, sales decks, podcasts, white papers, portal listings, trade publications, YouTube videos, and even conference stages. The content is louder. The claims are bolder. And the risks are greater than many franchisors realize.
This article complements “The Responsible Franchising Way to Make FPR Earnings Claims in Your Franchise Recruitment Marketing” by highlighting how Financial Performance Representations (FPRs) are escaping the compliance process and becoming uncontrolled marketing material. Often this happens without legal review or any awareness at the executive level. The result is growing liability that responsible franchisors cannot afford to ignore.
What’s Fueling This Trend?
Franchise marketing now spans dozens of platforms. Brokers, FSOs, agencies, PR firms, and sales vendors are under pressure to generate leads and build interest. FPRs have become a go-to asset and now appear in:
- Email campaigns promoting “low investment, high return” messages
- Franchise portal listings showing top-line revenue without context
- Sales decks and ROI explainers suggesting break-even timelines
- Broker blogs and LinkedIn posts quoting earnings claims
- Podcast interviews and webinars where franchise operators discuss performance
- TikTok, Instagram Reels, and Facebook ads that casually reference income
- CEO interviews in trade publications that go beyond the FDD
- White papers and downloadable “franchise reports” with extended claims
- Zoom PowerPoint presentations used in Discovery Day pitches
- YouTube videos posted by franchisors, third-party sellers, or CEOs on guest segments that casually reference performance
- Press releases from FSOs or marketing agencies making sweeping financial statements
- Trade show panels and keynote sessions where numbers are mentioned without disclaimers
These materials are often used by both internal and external franchise sellers. In many cases, the franchisor’s leadership team has no idea what is being said on their behalf.
The Compliance Disconnect
Many franchisors assume that having an Item 19 in the FDD allows them or their team to speak freely about performance. That assumption is incorrect.
Any claim, whether written, spoken, visual, or implied, that refers to a franchise operator’s or franchise owner’s actual or potential financial performance is considered a Financial Performance Representation. If it is not directly supported by the current Item 19, it is not allowed.
Phrases like “results may vary” or “contact us to learn more” do not provide legal cover. Every claim must include:
- The specific data from the current Item 19
- The number and percentage of units that achieved the result
- A clear, point-of-use disclaimer that references the FDD
Franchisors are responsible for what others say on their behalf. This includes brokers, PR firms, outsourced vendors, FSOs, and internal salespeople. Sharing a YouTube video, Zoom deck, sales slide, or white paper with performance data that is not in the FDD is still a violation. If it makes a financial claim, it must meet the standard.
The Federal Trade Commission has made it clear that earnings claims are under closer review, especially as more franchisors and sellers use digital platforms. At the same time, the International Franchise Association (IFA) has called for higher standards through its Responsible Franchising initiative. It urges franchisors to ensure their practices are accurate and legally sound.
Many people entering franchising, especially those who are new to franchise development, find it surprising that they cannot just tell people what franchise operators earn. They often ask, “If this is a real business investment, why can’t I just explain the return or show what people make?” The answer is, you can, but only if you do it correctly. And that means using a properly prepared Item 19 FPR. That is how you present real numbers that are grounded in actual results from a reasonable basis.
Casual Channels, Real Risk
Some teams believe that platforms like TikTok, YouTube, Instagram, and Facebook are too informal to require compliance. That belief is mistaken.
A 15-second video mentioning six-figure income, a YouTube interview clip referencing “top earners,” or a casual Instagram story about ROI are all Financial Performance Representations. So are white papers and Discovery Day slide decks shared over Zoom.
Whether the message feels casual or is published on an informal channel, it still triggers compliance requirements. If it references financial performance, it must comply with the law.
Common Violations in the Wild
- “Top owners earned $2.4 million last year!” No average, no support, no disclaimer
- “Most franchise operators break even in six months.” Unsubstantiated, misleading
- “$1.3 million per year brand” shared on LinkedIn. No Item 19 reference, no legal review
- “Franchisee ROI in under 12 months” in a white paper. Not supported by the FDD
- “Zoom deck” shared by a broker with breakeven projections. Unapproved and unverifiable
- “Millionaire Club” awards. Implies income levels without source data
Each of these is an FPR. If it is not taken directly from the FDD and supported by a proper disclaimer, it is out of compliance. It does not matter whether the franchisor approved it or even knew about it.
The Cost of Letting It Slide
Misused FPRs can lead to:
- FTC enforcement actions
- Legal exposure and settlements
- Damaged credibility with prospects and franchise operators
- Poor validation from franchise owners who feel misled
- Franchise operators who disengage because expectations were set too high
Earnings claims used improperly can do more harm than good, even if they generate short-term interest.
What Franchisors Must Do Now
- Audit every sales and marketing channel, including white papers, Zoom decks, YouTube videos, and press releases
- Train all stakeholders, including brokers, FSOs, PR firms, and internal teams
- Use only data directly from Item 19 and prohibit any unauthorized interpretations
- Require legal review of anything referencing performance or breakeven
- Do not rely on general disclaimers. Use specific, compliant language with full data
- Align with the IFA’s Responsible Franchising guidelines and monitor FTC activity
- Review how AI agents, chatbots, and automation tools answer candidate questions. If these tools, even unintentionally, make financial claims that are not grounded in Item 19, the franchisor is still accountable. Hallucination or error does not remove liability.
If Your FPR Is Strong, Use It the Right Way
If your Item 19 shows strong system performance, you should absolutely use it. FPRs, when presented correctly, can build confidence and help candidates evaluate your brand. But the only right way to do that is with a disclosure that is grounded in actual results from a reasonable basis.
Stick to the FDD. Make sure everyone is using the same information. Give your team the tools to succeed both legally and operationally. That is what responsible franchisors do.
The Bottom Line
You do not have to stop using performance claims. You just have to control how they are made. That includes every email, post, deck, podcast, video, white paper, and Discovery Day script.
When leadership sets the standard and enforces it, franchise sales teams grow with confidence, and the brand grows without regret.
Let’s Get This Right Together
Need help reviewing your FPRs, updating your disclaimers, or training your sales team and marketing partners to stay compliant?
Let us have a conversation about how to do this right, build confidence with franchise buyers, and keep your brand protected and respected.
About Franchise Info Advisory Partners
Franchise Info Advisory Partners is led by Joe Caruso, Ned Lyerly, and Michael (Mike) Webster, PhD. They are three highly experienced franchise executives who have built, scaled, and supported some of the most respected brands in the industry. They combine practical operating experience with strong development leadership.
What sets them apart is that they are not just credible. They are easy to talk to.
Clients frequently say:
“They make the hard stuff feel easier.”
Whether you are navigating compliance, training your sales team, or preparing for expansion, Joe, Ned, and Mike will guide you through it without jargon or confusion.
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