What does the FTC's Franchise Rule permit Bevaris Alliance to provide in Item 19?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
The FTC's Franchise Rule permits a franchisor to provide information about the actual operational 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 Branded Business, however, we may provide you with the actual records of that Branded Business. If you receive any other financial performance information or projections of your future income, you should report it to our management by contacting Benice Shamoon, 407 N. Maple Drive, Ground Floor, Suite #1, Beverly Hills, California 90210, (800) 277-3599, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 19)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, Item 19 addresses financial performance representations. The FTC's Franchise Rule allows Bevaris Alliance to include information about the actual operational financial performance of its franchised and/or franchisor-owned outlets in the FDD, provided that there is a reasonable basis for the information.
Bevaris Alliance is also permitted to provide financial performance information that differs from what is included in Item 19 under specific conditions. This includes giving prospective franchisees the actual records of an existing outlet they are considering purchasing. Additionally, Bevaris Alliance can supplement the information in Item 19 by providing details about potential performance at a specific location or under particular circumstances.
However, Bevaris Alliance states that it does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. They also do not authorize employees or representatives to make such representations orally or in writing. If a prospective franchisee receives any financial performance information or projections of future income from other sources, they are instructed to report it to Bevaris Alliance's management, the Federal Trade Commission, and the appropriate state regulatory agencies. If a franchisee is purchasing an existing Branded Business, Bevaris Alliance may provide the actual records of that Branded Business.