This month, I want to take a moment to talk about the Franchise Disclosure Document (FDD), specifically Item 19. A lot of people I talk to assume that Item 19 will tell them everything they need to know about whether a franchise is profitable. Unfortunately, that’s almost never the case.

Let’s break it down. There are four types of Item 19 disclosures you might come across:

1. The Missing Item 19 – Believe it or not, franchisors aren’t required to share earnings data, and about half of them don’t. If that’s the case, you’ll see two standard paragraphs in Item 19 stating that they could disclose financials but chose not to. On top of that, their employees are prohibited from discussing earnings with you. So, how do you figure out profitability? By talking directly to franchisees.
2. The Partial Item 19 – Some franchisors will give you some financial data—maybe average gross sales or even a gross profit figure. But here’s the catch: they won’t share all the expenses or net profitability. Without those numbers, you can’t get a full picture of what you might actually earn. Again, the only way to truly understand the financials is by speaking with franchisees.
3. The Company-Owned P&L – In this case, the franchisor provides a full profit and loss statement—but only for company-owned locations. While that might sound helpful, it can be misleading. A company-owned store might operate differently than a franchisee-run location. It could be a showcase store or a business the franchisor acquired rather than built from scratch using their own system. Useful? Yes. But not enough to base your decision on. You’ll still need to dig deeper by talking to franchisees.
4. The Hypothetical P&L – This one lays out what profitability could look like at different sales levels. Sounds great, right? The problem is, it’s all based on projections and assumptions, not real-world data. These numbers might be optimistic, outdated, or just plain unrealistic. Once again, your best bet is to talk to franchisees who are actually running the business.

Here’s the bottom line: as much as we’d love to open up the FDD, flip to Item 19, and instantly know how much money we’ll make, it just doesn’t work that way. There are no shortcuts to due diligence. If you want an accurate picture of what you’re getting into, you have to put in the work—especially when it comes to building a realistic P&L. (for more detailed information - read The Educated Franchise)

So, as you explore your options, make it a priority to connect with franchisees. Ask the tough questions. Get a true sense of what’s possible. The better your research, the more confident you’ll be in your decision.

One of my all-time favorite books is The Millionaire Mind by Dr. Thomas Stanley, a remarkable exploration of the traits and habits that lead to significant achievement. Dr. Stanley, a professor and business theorist, took an academic approach to uncovering the realities of success. Through thousands of interviews and surveys, he created a comprehensive, data-driven study that challenges common misconceptions about what it takes to succeed.

A standout section of the book for me is Table 2-1, titled Millionaires’ Success Factors. Here, Dr. Stanley asks a simple but profound question: “What are the key factors that contributed to your financial success?” The responses, numbering over 100, were distilled into 30 categories.

What makes this table fascinating is how it dispels the myths often associated with success. These high achievers attribute their accomplishments not to inherited privilege, genetic advantages, or sheer luck, but to qualities that anyone can develop with focus and dedication.

The Top 5 Traits of Millionaires

According to Stanley’s research, the five most critical factors for achieving financial success are:

1. Honesty in all interactions
2. Strong self-discipline
3. The ability to get along with others
4. Having a supportive partner
5. A willingness to work harder than most

These characteristics are striking in their simplicity. They don’t require advanced degrees, special connections, or extraordinary talent—just a commitment to values, relationships, and effort.

The Bottom 5 Traits of Millionaires

Equally enlightening are the attributes that ranked as least important to financial success. These include:

1. A strong religious faith
2. Being lucky
3. Investing in publicly traded stocks
4. Having top-notch financial advisors
5. Graduating at the top of my class

The last item is especially noteworthy, showing that academic performance, often seen as a hallmark of potential, isn’t a determining factor in wealth creation.  This is a powerful reminder that the school of life is more impactful than any college you might attend.

The Bigger Picture

The insights from The Millionaire Mind are both humbling and empowering. They suggest that success isn’t about being born with the right advantages but about cultivating traits like perseverance, self-reliance, and a strong work ethic. These are qualities within reach for anyone willing to put in the effort.

If you’re looking for practical advice and fresh perspectives on what drives success, The Millionaire Mind is a treasure trove of wisdom. It’s packed with insights that will inspire and motivate you to focus on what truly matters.

I highly recommend reading it from cover to cover—you won’t regret it!

It’s been a while since my last update, and much has happened.

For those who may not know, I live on a barrier island in Florida, and the past couple months has been challenging. We were hit by two major hurricanes—the worst I’ve seen in 25 years. To call such events "distracting" would be a massive understatement. They force you to question many aspects of life and test your resilience in profound ways.

As I reflect on the experience, I’ve started to identify lessons that have emerged from these storms. While my perspective may continue to evolve, here are five takeaways that stand out:

1. We Have Too Much Stuff
When the hurricanes hit, our ground level—used as a garage, playroom, and storage—ended up with three feet of water. The sheer volume of things we had accumulated over the years was overwhelming. Many of those items hadn’t been touched in years, and some held emotional attachments that made them hard to part with. The hurricanes made those decisions for us. In the aftermath, we were left with a mountain of items by the curb, most of which we’ll never miss. While I wouldn’t wish a hurricane on anyone, it was an effective (if brutal) way to declutter.

2. Prioritization is Key
Daily life often feels like an endless list of “important” tasks. When a hurricane strikes, that illusion shatters. Suddenly, triage becomes essential. You focus solely on what truly matters and let go of the rest. This intense focus allows for swift action on critical items, a skill that’s just as valuable in everyday life as it is during a crisis.

3. Self-Reliance is Essential
In the midst of a hurricane, there’s no water, no electricity, no cell service, and no internet. You’re on your own. The realization that you are entirely responsible for your safety and well-being is both sobering and empowering. It reinforces the importance of preparation and the ability to take decisive action when needed.

4. Adaptability Trumps Planning
As the saying goes, “Man makes plans, and God laughs.” You can prepare as much as you like, but when the storm arrives, it will do what it wants. Preparation provides a foundation, but adaptability, learning, and inner strength are what carry you through.

5. Count Your Blessings
Even in the midst of devastation, gratitude matters. Many in my community lost everything, yet it’s still possible to find reasons to be thankful. Studies have shown that gratitude is one of the shortest paths to happiness. It’s not always easy, but even during life’s most trying times, it’s worth striving for.

These lessons don’t just apply to hurricanes, they’re relevant to business and life as a whole. Simplify. Prioritize. Focus. Prepare. And above all, remain Positive, no matter how difficult the situation.

Wishing you and your loved ones peace and resilience this holiday season.