factual

Is B Bops making any representations about a franchisee's future financial performance?

B_Bops Franchise · 2025 FDD

Answer from 2025 FDD Document

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 the 2025 B Bops Franchise Disclosure Document, B Bops does not make any representations about a franchisee's future financial performance, nor do they make representations about the past financial performance of company-owned or franchised outlets. Furthermore, B Bops does not authorize its employees or representatives to make such representations, either orally or in writing.

However, if a prospective franchisee is purchasing an existing B Bops outlet, the franchisor may provide the actual records of that specific outlet. The FDD stipulates that if a potential franchisee receives any other financial information or projections of future income, they should report it to B Bops' management, the Federal Trade Commission, and the appropriate state regulatory agencies.

This policy is typical in franchising. The FTC's Franchise Rule allows franchisors to provide information about potential financial performance if there is a reasonable basis for the information and if it is included in the disclosure document. By explicitly stating that they do not make financial performance representations, B Bops is aiming to avoid potential liability from franchisees who might not achieve projected financial results. This places the onus on the franchisee to conduct their own due diligence and financial forecasting.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.