Is the Better Blend financial performance representation a projection of future performance?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Table 1 shows summary financial performance for the three Better Blend businesses operated by our affiliates for calendar year 2023. These were the only three locations operating during this period. This information is a historic financial performance representation. It is not a projection of future performance.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 38–40)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the financial performance representation provided is based on historical data and is not a projection of future performance. Specifically, the FDD states that the information provided in Table 1 summarizes the financial performance of the three Better Blend businesses operated by its affiliates for the calendar year 2023. The document explicitly clarifies that this is a "historic financial performance representation" and "not a projection of future performance."
This distinction is important for prospective franchisees because historical performance may not be indicative of future results. Various factors, such as changes in market conditions, competition, and the franchisee's management capabilities, can influence the financial performance of a Better Blend franchise. The FDD also notes that individual results may vary, and there is no assurance that a franchisee will achieve the same sales or earnings as the company-owned locations.
Better Blend also states that they do not authorize employees or representatives to make any financial performance representations or projections, either orally or in writing. The FDD instructs prospective franchisees to report any unauthorized financial performance information or projections to Better Blend's management, the Federal Trade Commission, and appropriate state regulatory agencies. This is to protect potential franchisees from misleading or unsubstantiated claims.
Prospective franchisees should carefully review the financial performance representation in Item 19, understand the assumptions and limitations, and conduct their own independent research and due diligence. This includes analyzing the market potential in their specific location, assessing their own financial resources and management skills, and seeking advice from experienced business advisors before making a decision to invest in a Better Blend franchise.