Where can I obtain written substantiation for the financial performance representations made by Auntie Annes, as mentioned in Item 19?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Written substantiation for the financial performance representations will be made available to you on reasonable request.
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- We encourage you to consult with your own accounting, business, and legal advisors to assist you to prepare your budgets and projections, and to assess the likely or potential financial performance of your franchise. We also encourage you to contact existing franchisees to discuss their experiences with the system and their franchise business. Notwithstanding the information set forth in this financial performance representation, our existing franchisees are your best source of information about franchise operations.
Other than in this Item 19, we do not make any additional representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any additional representations either orally or in writing. If you receive any additional financial performance information or projections of your future income, you should report it to the franchisor's management by contacting the Legal Department, Auntie Anne's Franchisor SPV LLC, 5620 Glenridge Drive NE, Atlanta, GA 30342, 404-255-3250, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 92–95)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, written substantiation for the financial performance representations outlined in Item 19 will be made available to you if you make a reasonable request. This means that Auntie Annes is prepared to provide documentation supporting the financial claims they make about franchise performance, but you must actively ask for it. This substantiation can offer a deeper understanding of how the financial figures in Item 19 were derived.
It is important to note that Auntie Annes has calculated the figures in the tables in Item 19 using financial reports submitted by franchisees. While Auntie Annes states that they have no reason to believe the reports are unreliable, they have not audited or independently verified these reports, nor have they asked questions of the submitting franchisees to determine whether they are in fact accurate and complete. This means that the financial performance data presented is based on unaudited information provided by existing franchisees, which may have its limitations.
As a prospective franchisee, it is advisable to request this written substantiation to better assess the financial performance representations. Furthermore, Auntie Annes encourages you to consult with your own accounting, business, and legal advisors to assist you in preparing your budgets and projections, and to assess the likely or potential financial performance of your franchise. They also encourage you to contact existing franchisees to discuss their experiences with the system and their franchise business. Existing franchisees are considered the best source of information about franchise operations, according to Auntie Annes.
If you receive any financial performance information or projections of your future income that are not included in Item 19, you should report it to Auntie Anne's Legal Department at 5620 Glenridge Drive NE, Atlanta, GA 30342, 404-255-3250, the Federal Trade Commission, and the appropriate state regulatory agencies. This is because Auntie Annes does not authorize its employees or representatives to make any additional representations either orally or in writing beyond what is in Item 19.