If Best Brains provides financial performance information, where must it be included?
Best_Brains 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 performance information or projections of your future income, you should report it to the franchisor's management by contacting Ajay Sunkara at Best Brains, Inc. 135 E. Algonquin Road, Suite B, Arlington Heights, Illinois 60005 (847) 485-0000, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 35)
What This Means (2025 FDD)
According to Best Brains' 2025 Franchise Disclosure Document, if Best Brains chooses to provide information about the actual or potential financial performance of its franchised or company-owned outlets, the information must be included in Item 19 of the disclosure document. This is in accordance with the FTC's Franchise Rule, which permits franchisors to provide such information if there is a reasonable basis for it.
Best Brains is not allowed to provide financial performance information that differs from what is included in Item 19, unless they provide the actual records of an existing outlet that a prospective franchisee is considering buying, or if they supplement the information in Item 19 with details about possible performance at a specific location or under particular circumstances.
The FDD states that Best Brains does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, and they do not authorize employees or representatives to make such representations. If a prospective franchisee receives any financial performance information or projections of future income from other sources, they are advised to report it to Best Brains' management, the Federal Trade Commission, and the appropriate state regulatory agencies.