Does the B Bops FDD contain financial performance representations for franchised outlets?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
We do not make any 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 such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial information or projections of your future income, you should report it to the franchisor's management by contacting Robert D. Johnson, 2900 100th St., Suite 302, Urbandale, Iowa 50322, (515) 221-3203, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATION (FDD pages 49–50)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, the company does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. This means that B Bops does not provide any specific data or projections regarding potential revenues, expenses, or profits that a new franchisee might expect to achieve. B Bops also does not authorize its employees or representatives to make any such representations, either orally or in writing.
This lack of financial performance representations places a greater burden on the prospective franchisee to conduct their own due diligence and market research. It is essential to independently assess the potential financial viability of a B Bops franchise in their desired location. Factors to consider include local market conditions, competition, operating costs, and the franchisee's own management capabilities.
However, if a prospective franchisee is purchasing an existing B Bops outlet, the franchisor may provide the actual records of that specific outlet. This would offer a more concrete basis for evaluating potential financial performance, but it's crucial to remember that past performance is not necessarily indicative of future results. If a potential franchisee receives any other financial information or projections of future income, they should report it to B Bops' management by contacting Robert D. Johnson, as well as the Federal Trade Commission and appropriate state regulatory agencies.
Many franchisors do provide some form of financial performance representation in their FDDs, which can be a helpful starting point for potential franchisees. The absence of such representations in the B Bops FDD means that prospective franchisees must be particularly diligent in their own investigations and seek professional advice to evaluate the opportunity.