Besides Item 19 of the FDD, what other claims, representations, warranties, or guarantees regarding earnings, sales, profits, or success of an Aplus franchised business should a franchisee disregard?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
You agree that no representations have been made to you concerning this Agreement or the Franchised Business other than contained in this Agreement and in the Franchise Disclosure Document you received before you signed this Agreement (the "FDD"). You agree that no claims, representations, warranties, guarantees express or implied regarding actual or potential earnings sales profits or success of your Franchised Business have been made to you other than as forth in Item 19 of the FDD, if any.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, prospective franchisees should disregard any claims, representations, warranties, or guarantees regarding the actual or potential earnings, sales, profits, or success of their franchised business that are not explicitly stated in Item 19 of the FDD. This means that any information received orally or in writing outside of Item 19 should not be relied upon when making a decision about investing in an Aplus franchise.
This provision is designed to protect both the franchisee and Aplus by ensuring that all financial performance representations are documented and transparent. It prevents franchisees from claiming they were misled by undocumented promises and ensures that Aplus is only held accountable for the specific financial information disclosed in Item 19. This is a common practice in franchising to maintain clarity and avoid misunderstandings regarding potential financial outcomes.
As a prospective franchisee, it is crucial to focus on the information provided in Item 19 and to conduct thorough due diligence. This includes consulting with financial advisors, reviewing the FDD carefully, and speaking with existing Aplus franchisees to gain a realistic understanding of the potential financial performance of an Aplus franchise. Relying on information outside of Item 19 carries significant risk, as Aplus is not bound by any such claims.