Does the Belocal Franchise Disclosure Document's financial performance representation figures reflect costs of sales, operating expenses, or other costs and expenses that must be deducted to obtain net income or profit?

According to Belocal's 2025 Franchise Disclosure Document, the financial performance representation figures provided do not account for costs of sales, operating expenses, or other costs and expenses. This means that the gross revenue or gross sales figures presented in the FDD do not reflect the net income or profit a franchisee might expect to earn.

Belocal explicitly states that these figures do not include deductions for expenses. Therefore, a prospective franchisee must conduct their own independent investigation to determine the costs and expenses they will likely incur while operating a Belocal franchise. This investigation should include contacting current or former Belocal franchisees, who are listed in the Franchise Disclosure Document, to gather information about their actual operating costs.

This disclosure is a standard practice in franchising, as franchisors often provide gross revenue figures but leave it to the franchisee to determine their own profitability based on their specific operating costs and management. It is crucial for potential Belocal franchisees to not rely solely on the franchisor's financial performance representations but to perform thorough due diligence to understand the potential profitability of the franchise after accounting for all relevant expenses.