Is Bevaris Alliance providing any financial performance representations in Item 19?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 19: FINANCIAL PERFORMANCE REPRESENTATIONS
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 the 2024 Bevaris Alliance Franchise Disclosure Document, Bevaris Alliance does not make any financial performance representations. Item 19 states that Bevaris Alliance does not provide any information about the past financial performance of company-owned or franchised outlets, nor do they make any representations about a franchisee's future financial performance. Bevaris Alliance also does not authorize employees or representatives to make such representations, either orally or in writing.
However, if a prospective franchisee is purchasing an existing Bevaris Alliance business, the franchisor may provide the actual records of that business. The FDD advises that if a potential franchisee receives any other financial performance information or projections of future income, they should report it to Bevaris Alliance's management, the Federal Trade Commission, and the appropriate state regulatory agencies.
This means that potential franchisees should not rely on any financial performance information unless it comes directly from the existing business's records if purchasing an existing franchise. It is important to conduct independent research and due diligence to assess the potential profitability of a Bevaris Alliance franchise, as the franchisor provides no guarantees or projections.