How to Find a Proven Franchise: FDD Item 19 Checklist for 2026

By Dan Lorenz | Updated November 5, 2026

Guerrilla Franchising has guided 495+ people through the franchise decision and placed 85+ in a franchise. Franchise sellers use “proven” loosely. A big name or a long history tells you a brand has survived. It does not tell you what a unit like yours earns, or how many owners left. This page shows the three places in public filings where a brand has to prove it.

What does “proven” mean for a franchise?

A proven franchise is one whose own disclosure document backs up the pitch. Every franchisor selling in the US has to give you a Franchise Disclosure Document with 23 Items under the FTC Franchise Rule (16 CFR Part 436). Three public records do most of the checking:

• Item 19, financial performance representations. What existing units report, if the franchisor chooses to say.
• Item 20, outlets and franchisee information. Three years of openings, closures and transfers, plus contact lists for current and former owners.
• SBA loan history. Public loan data that shows how SBA-backed loans to the brand’s owners have performed.

Rankings and “years in business” help you build a short list. You still need these three checks and calls with owners.

What does FDD Item 19 tell you, and what does it leave out?

Item 19 is the only place a franchisor may give you earnings figures. The rule lets a franchisor leave it out. When it is there, ask four questions:

1. Who is in the sample? All units, units open a full year, top performers, or company units. The answer changes what the number means.
2. What is measured? Most Item 19s report gross sales or revenue. Revenue is not profit. Check whether the filing gives any profit figure.
3. Average or median? A few big units pull an average up. Jersey Mike’s reports an average of $1,367,578 and a median of $1,305,850, close together (Jersey Mike’s dossier). Budget Blinds shows a wider gap, $774,915 against $522,826 (Budget Blinds dossier).
4. Does it match what owners say? The number only counts once current owners confirm it on the phone.

Zorzee’s guide on how to read FDD Item 19 goes line by line. The way we turn an Item 19 into a cash plan for your territory is part of the Clarity Call.

How do Item 20 unit counts show whether a system is growing?

Item 20 has tables for the last three years: units opened, transferred, terminated, not renewed, reacquired by the franchisor and ceased operations. Look for three patterns:

• Net growth. More openings than closures, year after year. Jersey Mike’s added a net 238 franchised units to reach 3,201 in 2025 (Jersey Mike’s dossier).
• Shrinkage. Mosquito Authority reported 521 franchised units in 2025, a net drop of 25 (Mosquito Authority dossier). A drop is a reason to ask the franchisor why.
• Transfers. A high transfer count can mean owners sell at a profit or want out. Only the owners who sold can tell you which.

Item 20 also lists former owners. Call them too.

How do 8 franchises compare on Item 19 and Item 20?

Each brand name links to its free Zorzee dossier, which takes the figures from that brand’s latest FDD. Brands are grouped by category, not ranked.

Source: each brand’s latest FDD, Items 7, 19 and 20, as shown on its free Zorzee dossier (linked). Item 19 figures are gross sales, revenue or billings as defined in each filing, not profit. Express Employment Professionals reports gross billings. Net unit change is franchised units at the end of 2025 compared with the year before. Read the full Item 20 tables for openings, closures and transfers.

What can SBA loan history tell you about a franchise?

Many franchise buyers use SBA-backed loans, so SBA data is a public record of how owners of a brand have done with debt. Use two SBA sources:

• SBA 7(a) and 504 loan data (FOIA). Loan-level files that include the franchise name, loan amount, approval date and loan status, including loans paid in full and loans charged off.
• SBA Franchise Directory. The list of brands eligible for SBA financing. If a brand is not on it, ask why.

Filter the loan file for the brand and look at the share of loans that ended in charge-off, by year. Small brands have few loans, so one bad year moves the share a lot. How we read that file next to Item 20, and what to ask the franchisor about it, is something we walk through on a call. For a longer read, the Zorzee Report covers how SBA franchise loans work and the new SBA franchise loan rules for 2026 and 2027. For how the SBA 7(a) program works and how to plan cash once you are open, Books Brothers’ cash flow page is a good next read.

Which franchise categories are easiest to compare?

“Proven” means different things in different categories. Compare brands inside one category, then compare categories by the life you want.

• Home services. This covers lawn care, pest and seasonal service, and home improvement. Weed Man, Mosquito Authority and Budget Blinds in the table. Our guide to home service franchises covers the category.
• Residential cleaning. The owner manages cleaning teams. MaidPro is the example here.
• Senior care. These are in-home care agencies. Home Instead and Right at Home both report Item 19 averages above $1.8 million. That is revenue in a staffing-heavy business, not profit. See what a senior care franchise costs.
• Food. Food brands need larger build-outs and real estate. Jersey Mike’s Item 7 starts at $436,176.
• Business services. This covers staffing and B2B brands. Express Employment Professionals reports gross billings, which are not comparable to retail sales.

What due diligence steps prove a franchise for you?

These are the questions, with the short answers. We cover the scripts, scoring and order on the Clarity Call and in the free diagnostic.

1. Do I fit the owner role? Start with your week, capital and goals, not the brand. A proven brand in the wrong role is still the wrong buy.
2. Does Item 19 hold up? Read the sample, the metric, and the average against the median.
3. Is the system growing? Read three years of Item 20 and check net openings, closures and transfers.
4. What do owners say? Call current and former owners from the Item 20 lists. Ask what they made in year one and year three.
5. How have SBA loans to this brand performed? Check the SBA loan data and the Franchise Directory.
6. What did the FDD leave out? Have a franchise attorney and a CPA review the FDD and your cash plan before you sign.

Want the full method on your own first? Start with the free Franchise Decision Diagnostic.

Why can a proven brand still be the wrong buy?

I have been on both sides. I grew my first franchise, Mosquito Authority, and sold it in 2020. On my second franchise, $321K in costs were omitted from the FDD. The brand looked established. The document did not show what it would cost me. That is why I read who is counted in Item 19, who left in Item 20, and what is missing, before I look at any headline number.

Should you buy a franchise, start your own business or stay in your W-2 job?

All three are good outcomes when the numbers back them. About 1 in 3 people I work with buy a franchise. The rest start their own business or stay where they are. Ask what the brand gives you that you could not build alone, and whether that is worth the royalty and the risk.

How does Guerrilla Franchising get paid?

Consulting has no fee for you. If you buy a franchise through our process, the franchisor pays FranChoice, and FranChoice pays Guerrilla Franchising. If the evidence says not to buy, we tell you. You can read what past clients say on our reviews page.

Frequently asked questions

What makes a franchise proven?

A proven franchise shows it in its FDD. Item 19 gives an earnings claim with a clear sample, Item 20 shows more openings than closures over three years, and current owners confirm both. Years in business and list rankings help you build a short list, but they do not prove the unit economics.

Does every FDD include Item 19?

No. The FTC Franchise Rule lets a franchisor choose whether to make a financial performance representation in Item 19. If there is none, the franchisor should not give you earnings figures anywhere else, so you build the numbers yourself from owner calls.

Is the Item 19 average what I would earn?

No. It is usually gross sales or revenue, not profit, and it covers only the units the franchisor chose to include. Compare the average to the median and read who was left out of the sample before you use it in a plan.

How do I check a franchise in SBA loan data?

The SBA publishes 7(a) and 504 loan data with the franchise name on each loan, plus a Franchise Directory of brands eligible for SBA financing. Filter the loan file for the brand and look at loan status over time, then ask the franchisor about what you find.

Do I have to pay a franchise consultant?

Not with Guerrilla Franchising. Consulting has no fee for you. If you buy a franchise through our process, the franchisor pays FranChoice, and FranChoice pays Guerrilla Franchising.

Should I buy a franchise, start my own business or stay in my W-2 job?

It depends on what the brand’s system gives you that you could not build alone, and whether the fees are worth it. About 1 in 3 people Dan Lorenz works with buy a franchise. The rest start their own business or stay put, and that is a good result when the numbers point that way.

Sources

• FTC Franchise Rule, 16 CFR Part 436 (eCFR): FDD contents, including Items 19 and 20.
• SBA 7(a) and 504 FOIA loan data: loan-level data with franchise names and loan status.
• SBA Franchise Directory: brands eligible for SBA financing.
• SBA 7(a) loans: program overview.
• Jersey Mike’s free dossier (Zorzee): 2026 FDD Items 7, 19 and 20.
• Home Instead free dossier (Zorzee): 2026 FDD Items 7, 19 and 20.
• Right at Home free dossier (Zorzee): 2026 FDD Items 7, 19 and 20.
• MaidPro free dossier (Zorzee): 2026 FDD Items 7, 19 and 20.
• Weed Man free dossier (Zorzee): 2026 FDD Items 7, 19 and 20.
• Budget Blinds free dossier (Zorzee): 2026 FDD Items 7, 19 and 20.
• Mosquito Authority free dossier (Zorzee): 2026 FDD Items 7, 19 and 20.
• Express Employment Professionals free dossier (Zorzee): 2026 FDD Items 7, 19 and 20.
• About Dan Lorenz: background behind the 495+ people guided and the first and second franchise stories.

Related reading

• How to choose a franchise
• Buying a franchise
• How to calculate franchise profit margins before you buy
• Franchise financing 101
• How to read FDD Item 19 (Zorzee)
• Free franchise consultation: the Clarity Call
• Books Brothers cash flow planning

Last updated November 5, 2026. Figures are from each brand’s latest FDD as shown on its Zorzee dossier and may change when new FDDs are issued. We do not guarantee earnings or financial results. Buying a franchise is a business investment that carries risk, including the possible loss of your investment. Review the full FDD and talk to your own attorney, CPA and financial advisor before you sign anything or pay anything.