Does the Aplus FDD include any pro forma financial statements?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| A. APLUS Franchise Agreement with Attachments | G. Manual Table of Contents |
|---|---|
| B. Development Agreement | H. Financial Statements |
| C. List of Current and Former Franchisees | I. State Specific Addenda |
| D. List of State Administrators | J. State Effective Dates |
| E. List of Agents for Service of Process | K. Receipt |
| F. Franchise Disclosure Questionnaire |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 68)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, Item 22 lists the contracts that make up the FDD. Included in this list is "Financial Statements." However, the FDD does not explicitly state whether these financial statements are pro forma.
Pro forma financial statements are hypothetical projections of future financial performance. Their inclusion in an FDD is not mandatory, but they can be helpful for prospective franchisees in evaluating the potential profitability of the franchise. Without confirmation, it is unclear if the financial statements included in the Aplus FDD contain the pro forma statements that would project revenues, expenses, and income.
A prospective Aplus franchisee should carefully review Item 22 and the referenced "Financial Statements" to determine if pro forma statements are included. If they are not, it is advisable to request this information from Aplus directly to aid in financial planning and decision-making. Understanding the assumptions and methodology behind any financial projections is crucial for assessing the potential risks and rewards of investing in an Aplus franchise.