Is B Bops making any representations about the past financial performance of company-owned or franchised outlets?
B_Bops Franchise · 2025 FDDAnswer 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 B Bops' 2025 Franchise Disclosure Document, B Bops does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. B Bops also does not authorize its employees or representatives to make any such representations either orally or in writing.
However, if a prospective franchisee is purchasing an existing outlet, B Bops may provide the actual records of that outlet. The FDD stipulates that if a prospective 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. Item 19 of the FDD 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 representations about financial performance, B Bops is limiting its liability and ensuring that prospective franchisees do not rely on unauthorized financial projections.