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Franchise Resale Term

Item 19 (Financial Performance Representations)

Definition

Where a franchisor may state what its units earn; outside it, only a supplement or the records of your unit.

Why It Matters

System averages are not your unit. On a resale the location's own numbers outrank anything published here, and the gap between the two is itself the finding. A unit running well under the system average is either badly run, which is an opportunity, or badly sited, which is not, and those look identical on a spreadsheet. Visit at the busy hour before deciding which.

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