Restaurant Franchising, 3rd Edition

130 Restaurant Franchising

Financial Performance Representations on a Specific

Outlet Offered for Sale

The amended Rule’s Item 19 makes clear that a franchisor not wishing to

make fi nancial performance representations may nonetheless offer to show a

prospective franchisee the actual operating results of a specifi c outlet being

offered for sale. Such information, however, may only be furnished to poten-

tial purchasers of that outlet and no others.

Supplemental Representations

If a franchisor has furnished an Item 19 disclosure, it may furnish a pro-

spective franchisee with a supplemental fi nancial performance representa-

tion pertaining to a particular ...