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When you are researching franchise business opportunities, one of the most anticipated sections of the Franchise Disclosure Document (FDD) is Item 19: Financial Performance Representations (FPRs). This is where franchisors may (but are not required to) share historical revenue, expense, or profit data from their franchise system.
On the surface, it feels like the holy grail of decision-making: Finally, some numbers! But here’s the reality: Relying solely on Item 19 to decide whether to buy a franchise is a mistake.
Additionally, Item 19 is not a good source to compare one franchise business to another. Comparing franchise opportunities based on their Item 19 information is the epitome of comparing apples and oranges!
Sit down for this one… Here is why:
1. Not All Franchisors Provide the Same Information (Not Kidding!)
Franchisors are not required to include Item 19… But they do because it helps sell franchise businesses. Some provide detailed financials, while others give partial or limited data (e.g., gross revenue averages without expenses). You might be looking at a “best-case scenario” instead of a complete financial picture. “It’s like a box of chocolates…”
Fit Tip: Whether you are looking at high or low cost franchise opportunities, Item 19 is just part of the whole picture. If your goal is to find the most profitable franchise for you to own, there are many other sources of data to investigate in order to have a better understanding of a brand’s financial landscape.
2. Averages Tell You What? Not Much.
Many Item 19 disclosures are based on averages, which can be misleading. An “average” can be skewed by a handful of top-performing franchisees, while the majority may be operating below that number. Without context, the average can set unrealistic expectations.
Fit Tip: Talk to existing franchise owners (and not just the ones the brand recommends) to get a better picture of what a day in the life really looks like. The key to success is not just finding the most profitable franchises to own, but also finding the best FIT for you.
3. Expense Data = Absent.
Even when revenue is disclosed, net income is rarely shown. Item 19 often leaves out critical costs of a franchise business (think rent, labor, marketing, or debt service), which directly impact what you take home. High revenues don’t equal high profits.
And don’t forget – what one owner might expense is wildly different from how another owner manages write-offs and compensation. We are over here expensing home improvements, and another person is expensing their new Audi. See my blog featuring net income – that is another story for another day.
4. The numbers are HISTORY!
The numbers in the Item 19 are historical data points. They are not futuristic. They are not current year-to-date. They do not represent the current market landscape. The numbers are completely a reflection of the previous year’s performance by owners that were operating a full calendar year prior to updating the FDD (yearly occurrence).
5. Performance Depends on You – And That Is a FACT!
Yes, I mean to tell you that just because this is a franchise, it does not mean you automatically make money! Sorry. Your results won’t just depend on the franchise brand… the most profitable franchises to own will depend on the location, market size, your management style, and your ability to execute the model too. Item 19 can’t tell you how well you will perform—it only shows what others have done under different circumstances.
Fit Tip: When you are looking at a franchise business, how well others have done monetarily is at the bottom of the list of reasons to choose a certain model. You need to pick a franchise that will let your strengths shine, aligns with your expectations around day-to-day life and flexibility, and more.
6. There is Gold In Validation
Numbers are important, but the real insights come from conversations with existing franchise owners. They’ll tell you what margins look like, what unexpected expenses come up, and how long it took them to cover expenses monthly, operate in the “black” or hit break-even. Validation calls reveal the day-to-day realities that Item 19 cannot capture. In essence, we can break it down to simple math: How much does it cost to run the business monthly (without bells and whistles), and how much does the average ticket bring in? Go ahead… Pull your napkin out and see how many customers you need to break even monthly. Can you do it PLUS some?
As for the validation stage, we can talk later about how to manage validation calls and pull out the data to use in how YOU will operate. Remember, you are going to run the franchise business… And you may not run it exactly like them. Can you get excited about the typical day-in-the-life?
Fit Tip: Item 19 is a useful tool, but it’s only one piece of the puzzle. Don’t let it be the deciding factor. Pair it with thorough validation, market research, and an honest evaluation of your goals and resources – Find Your Fit, and that will show you the money!
Ready to Find Your Fit? Contact us today to get started with your 100% free Franchise Fit consultation. We will help you kick off your journey to pinpointing your perfect fit – whether that is a home renovation franchise, a pet franchise, a fitness franchise, or something else altogether.
FAQs About Franchise Business Opportunities and the Item 19
What is an Item 19 in franchising?
In franchise businesses, “Item 19” refers to a specific section of the FDD (Franchise Disclosure Document). This section covers Financial Performance Representations, or FPRs. Things that could be shared in an Item 19 include earnings information, expense data, revenue, and more. Franchisors are not required to include an Item 19 section in their FDD, but many do, as it helps to sell both high-end and low cost franchise opportunities.
What is the best franchise to own?
The best franchise to own is actually a MYTH. There is no one best franchise – rather, the “best” or most profitable franchises to own are the ones that capitalize on your strengths and skills. If you hate the day-to-day management of a certain franchise, you will not succeed as an owner.
What is the most profitable franchise to own?
The most profitable franchise to own depends on finding the right FIT. When you pinpoint a franchise that lets your strengths shine and plays into your skill set, that is where you will be most successful.
What is the cheapest franchise to buy?
There are many low cost franchise opportunities available in markets like Winston-Salem, Raleigh, Jacksonville, Chattanooga, and many other areas. We can discuss finding a territory and a brand with an affordable entry point into franchising that fits your ideal franchise business profile and everyday needs.
There are affordable businesses in areas like home renovation franchises, pet franchises, fitness franchises, gym franchises, wellness franchises, electrical franchises, plumbing franchises, and many other niches that may not have even crossed your mind!
How much does it cost to buy a franchise?
The cost of buying a franchise varies greatly – and remember, buying a franchise is not just about the initial Franchise Fee. Other startup costs include marketing, hiring, buildouts or renovations, and much more. Typically, the FDD will give you an idea of the costs you will need to account for in the first year or so of getting your franchise off the ground until you break even.
Are you ready to kick off your next chapter as a franchise business owner?
Schedule a free meeting right here. I can’t wait to chat with you and discuss franchise opportunities, building your business, and starting a new chapter in your career. Working with me is always 100% free, 100% of the time. Talk to you soon!
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I frequently speak to prospective clients that are really diving into the ETA (entrepreneurship through acquisition) evaluation, looking at existing businesses to buy. ETA is the “sexy” and popular route for investors and people looking to own a business without starting from scratch. Many haven’t even thought about a franchise business – but owning a franchise is becoming more popular as a way to leave corporate or diversify your revenue streams. Let’s dive in a bit more:
- Franchise Business: You will buy the rights to operate under an established brand.
- Entrepreneurship Through Acquisition (ETA): You acquire and grow an existing independent business.
Both models have their pros and cons, and your decision should depend on your goals, risk tolerance, personality, and resources.
Let’s break down both options to help you make a confident, informed choice about the best businesses to buy, whether that is a franchise business or the ETA route.
What Is Franchising?
Franchising involves investing in a business model developed by an established brand. You pay fees to become a franchisee and get access to brand recognition, systems, support, and ongoing training.
Example: Opening a Jersey Mike’s or ServPro
There are many different types of franchise business opportunities out there, from pet franchises to gym franchises, wellness franchises, home service franchises, home remodel franchises, plumbing franchises, painting franchises, design franchises, and so much more.
What Is ETA (Entrepreneurship Through Acquisition)?
ETA is the process of buying an existing, independent business with the goal of running and scaling it. These are usually small-to-medium-sized companies with stable cash flow, retiring owners, and untapped growth potential.
Example: Buying a local HVAC company or a regional marketing agency.
There are advantages of a franchise business as well as an ETA. Now, we will take a look at the key differences between these opportunities and how to select the best businesses to buy.
Franchise vs. ETA: Key Differences
| Factor | Franchise | ETA (Acquisition) |
| Risk Profile | Lower (proven model) | Higher (varies by deal) |
| Startup Time | Faster (weeks to months) | Slower (6–12 months for search and close) |
| Support | Extensive franchisor support | Usually none – you’re on your own |
| Brand Control | Limited (must follow rules) | Full control and flexibility |
| Entry Cost | Often lower ($50K–$500K+) | Varies ($200K–$5M+) |
| Operational Complexity | Simpler, more standardized | Often complex (employees, systems, legacy issues) |
| Exit Potential | Depends on brand and territory | Potential for higher valuation/multiple |
| Ownership Feeling | Shared with the franchisor | Full ownership and autonomy |
This chart can guide you in determining whether you prefer a franchise business or ETA. But if you are still decided on the best businesses to buy, keep reading – or book a consultation to talk about it with me, 100% free. I’m happy to help you discover whether or not franchising is right for you.
When a Franchise Business Might Be Right for You
- You want structured support and a proven roadmap.
- You’re a first-time entrepreneur looking for lower-risk entry.
- You prefer operational execution over building from scratch.
- You’re okay with paying royalties and following a system.
Best for: Operators who want to plug into a successful machine and scale within clear guardrails. In some cases, you may even be able to find a home based franchise business for ultimate flexibility.
When ETA Might Be Right for You
- You want to own and control 100% of the business.
- You have experience in leadership, operations, or deal-making.
- You’re comfortable with uncertainty and willing to solve messy problems.
- You’re aiming for bigger upside and long-term equity value.
Best for: Strategic thinkers who want to grow and transform a business over time.
Fit Tip: You Can Do Both
Some entrepreneurs start with a franchise to gain experience and cash flow, then move into ETA once they’re more confident. Others acquire an independent business and later franchise it themselves.
Choosing the best businesses to buy is all about understanding your individual risk tolerance, cash flow options, and long-term goals for your financial future and career. Beginning your investment journey with a franchise business can help you build wealth and confidence, opening the doors to other opportunities like ETA in the future. You may also try owning a franchise and discover that it does fit your goals and that you prefer this lower-risk, proven option and the actionable systems involved in a franchise business.
There is no right or wrong answer when it comes to the best businesses to buy, franchise vs ETA. It’s all about determining your personal preferences.
Final Thoughts
There’s no “one-size-fits-all” answer. Whether you choose franchising or ETA, you’re already ahead by pursuing ownership over employment.
Ask yourself:
- Do I want freedom or structure?
- Am I more of a builder or an executor?
- How much risk am I willing to take?
Both franchising and ETA can lead to financial freedom and personal fulfillment—if you choose the path that aligns with who you are and what you want.
The biggest question I ask of anyone considering ETA or Franchise Ownership: What do you want your role to be? Define your day-in-the-life. You still need to find FIT in any business.
Have questions about either path? Schedule a free meeting right here. I can’t wait to chat with you and discuss franchise opportunities, building your business, and starting a new chapter in your career. Working with me is always 100% free, 100% of the time. Talk to you soon!
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Owning a franchise can be an incredible step toward independence—but not all franchises are created equal. What works for one person might be a terrible fit for another. Believe me, I learned the hard way! I will dive more into that in a second. But first…
Take a look at the top two questions that people ask me when they are looking at owning a franchise, which are NOT the most important questions.
1. “What’s the best franchise?”
2. “What franchise makes the most money?
What you need to ask is: “What is the best franchise FIT for ME?”
Fit Secret: If the franchise FITS you, then you will have the answer to the questions above. That will be the best franchise, and you will increase your odds of business success.
Finding the best small business fit isn’t just about profit potential. It’s about aligning your small business ideas with:
- The role you want to play
- The time you’re willing to invest
- The customers you want to serve
- The team you want to lead
Before I go any further, let me share my own story.
I was handed the opportunity to own a franchise—literally handed to me. Who wouldn’t be excited? Owning my own business had always been in the back of my mind. I’d gone to graduate school, built a solid career, and when this opportunity came along, I thought, Yes! This is it. Let’s do it.
Fast forward: I took over an existing franchise (check out my blog on the pros and cons of buying existing vs. starting fresh). Right away, I realized I had some serious fires to put out. The customer base needed to be cut in half. The staff turned over. Marketing wasn’t even turned on. It was go time.
So, I rolled up my sleeves and got deep in the weeds. And what I quickly realized was this: the day-to-day reality of running this business looked nothing like I had imagined. It didn’t align with my strengths. In fact, it pushed me into areas I dreaded. I started losing sleep. I cringed when the phone rang. I felt frustrated, overwhelmed—and worst of all—I started to resent something I was supposed to be building with pride. That is not to say that owning a franchise was not for me… but maybe owning this franchise was not for me.
Those feelings made it hard to justify investing more time, energy, or money. I felt like I was failing. And as a competitive person, that was a tough pill to swallow. But quitting? That felt like giving up.
So, I kept going. I led the business for two years. I turned it around. We became profitable. And I’m proud to say I had built an exit strategy—and I took it.
The experience taught me a lot. I’m grateful for it. But here’s the biggest lesson: owning a franchise is hard enough. Trying to be someone you’re not just to make it work? That’s not success—that’s survival. And in my opinion, those aren’t the same thing.
Okay. Now, let’s talk about finding the FIT and finding the best businesses to buy for you:
1. Define the Role You Want to Play
Before looking at brands or industries, ask yourself: What kind of owner do I want to be?
There are generally three types of franchise ownership:
- Owner-operator: You run the day-to-day operations. Ideal for hands-on people who enjoy leading from the front.
- Semi-absentee: You manage the manager. Great for those who want to keep a job or pursue other ventures.
- Executive owner: You hire a team to run it and focus on strategy/growth. Suited for experienced leaders or multi-unit investors.
Fit Tip: Be honest about how much control, time, and energy you want to commit. And, a business needs to be “run” – so some level of involvement will be required in any of the best small businesses.
2. Match the Business to Your Strengths
What are you naturally good at? Are you a people person, a problem-solver, or a sales machine? Picking a franchise that complements your skills will make everything easier – from hiring to customer service. This is how you find the best businesses to buy – “best” is a relative term dependent on your unique strengths and preferences
Fit Tip: Franchising works best when you run in your lane. Do not force yourself into a role you’ll burn out in or dread.
3. Be Realistic About Your Time Commitment for Owning a Franchise
How much time are you really willing to spend in the business?
- Do you want flexibility or to keep your day job?
- Do you want to replace your job and be your own boss full-time?
- Are you looking to plan to build a team and scale fast?
- What does “part-time” or “full-time” mean to you?
Fit Tip: Everyone defines working hours and availability differently. Full-time doesn’t always mean 40 hours, especially if you came from Wall Street! Do you want to work weekends? Evenings? Many people underestimate the time it takes to launch and stabilize a business. Start small and grow owning a franchise into a bigger commitment.
4. Think About the Customers You Want to Serve
You will be interacting with customers – either directly or through your staff. So ask yourself:
- Do you want to work with families, professionals, or businesses?
- Do you prefer high-touch service (like tutoring) or transactional models (like QSR)?
- Are you drawn to community impact, or do you just want a recurring revenue machine?
Fit Tip: Passion isn’t everything, but liking who you serve definitely helps on tough days. When you think about the best small businesses, your customer base makes a huge difference.
5. Consider the Staff You’ll Need to Hire and Manage
The small business ideas you gravitate toward will determine the kind of team you’ll build.
- Food and retail: High turnover, entry-level roles, strong training systems required.
- Fitness or education: Staff with certifications or niche skills.
- Home services/B2B: Techs, sales reps, or customer service pros.
Ask yourself:
- Am I comfortable hiring and managing hourly employees?
- Do I want a lean team or a larger operation with more complexity?
- Would I rather manage specialists or generalists?
Fit Tip: Your ability to lead and retain the right team can make or break your business, and it also helps determine the best businesses to buy for YOU.
6. Align Your Personal Goals With the Franchise Model
Finally, ask the big-picture questions about your small business ideas:
- Do I want time freedom, financial growth, or both?
- Is this franchise scalable? Sellable?
- Will I still be happy doing this in 5–10 years?
Fit Tip: This is your business, so make sure it aligns with your definition of success, not someone else’s.
Final Thoughts: The Best Franchise Is the One That Fits YOU
Owning a franchise is a powerful vehicle – but only if you choose small business ideas that align with your strengths, goals, and lifestyle. The right franchise won’t just make you money – it’ll make you better at what you love to do.
So before falling in love with a brand or business model, ask:
- What role do I want to play?
- Who do I want to serve?
- Who do I want to work with?
- What kind of life do I want to build?
Fit Tip: Answer those honestly, and the best businesses to buy will be easier to uncover. You will know what questions to ask, what to look for… and with the help of The Franchise Fit Company, you can find your way into the best small businesses with the RIGHT franchise for YOU.
Thinking about franchise ownership but unsure where to start? Let’s connect—I help aspiring owners find the best small businesses based on who they are, not just what’s trending.
Schedule a free meeting right here. I can’t wait to chat with you and discuss franchise opportunities, building your business, and starting a new chapter in your career. Working with me is always 100% free, 100% of the time. Talk to you soon!
Finding the Franchise FIT for YOU: Find the Best Businesses to Buy With Your Strengths and Lifestyle
