Beyond the Binder: Item 18 – Public Figures

If you’ve ever wondered why celebrity names pop up in Franchise Disclosure Documents, Item 18 is where the fine print spills the tea. This section is where franchisors must reveal any “public figures” used to promote or endorse the franchise. Think of it as the legal receipt for every celebrity handshake, smiling billboard, or “brand ambassador” who claims they “just love this concept.”

But here’s what Item 18 really tells you: whether the face you’re buying into actually has skin in the game or is just cashing a check.

What Item 18 Covers

Item 18 requires the franchisor to disclose:

• The name and address of any public figure who’s involved in promoting the franchise.

• Their role and extent of involvement; are they an investor, a paid spokesperson, or just posing with a product?

• The nature and amount of any compensation they receive for their endorsement.

• Whether they own any interest in the franchisor or an affiliate.

In short, this item tells you if that “celebrity partnership” is genuine or just another marketing mirage.

Why It Matters

Public figures can create major FOMO for new investors. If a franchisor flaunts a partnership with a pro athlete, reality TV star, or influencer, it can make the brand seem instantly trustworthy. But here’s the catch: these endorsements often end when the checks do.

A franchise system that leans too heavily on celebrity credibility may be overcompensating for what’s missing behind the scenes; like real financial performance data, proven systems, or actual franchisee success stories.

Before you get starstruck, ask these questions:

• Is the public figure actually a franchisee or equity holder?

• How long is the endorsement agreement?

• Does the relationship impact the franchise’s long-term sustainability—or just its short-term hype?

The Reality Check

Item 18 is your reminder that fame doesn’t equal franchise success. Just because someone famous “believes in the brand” doesn’t mean you should. Many franchisors use celebrity associations to fast-track growth, boost credibility, and attract investors who trust familiar faces more than unfamiliar disclosures.

If the franchisor’s biggest selling point is a celebrity tie-in, take a step back. Look for substance: consistent unit performance, transparent support structures, and solid data. The real star of any franchise should be the numbers, not the name on the billboard.

Beyond the Binder Takeaway

Franchise fame fades fast. Before you buy into the hype, make sure the business model, not the influencer, is doing the heavy lifting. Item 18 may be short, but it’s a powerful checkpoint to separate real credibility from rented celebrity.

Franchise Reality Check™ makes no representations or warranties regarding the accuracy or completeness of information provided in this post. Nothing contained herein should be construed as legal, financial, or investment advice. Always consult with qualified professionals before making decisions regarding franchise or business opportunities.