If a prospective franchisee of Bft requests written substantiation for the financial performance representations, is Bft obligated to provide it?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Written substantiation for these financial performance representations will be made available to the prospective franchisee upon reasonable request.
Other than the preceding financial performance representation, we do not make any financial performance representations. 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 Studio, 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 our management by contacting our Brand President, Niklaus Kish at BFT Franchise SPV, LLC, 17877 Von Karman Ave., Suite 100, Irvine, CA 92614 or via telephone at (949) 346-3000, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 67–75)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, Bft is obligated to provide written substantiation for the financial performance representations to a prospective franchisee upon reasonable request. This means that if Bft includes any claims about potential revenue, income, or profits in its FDD, it must have documented evidence to support those claims. A potential franchisee has the right to ask for this documentation to verify the accuracy and reliability of the financial performance representations.
This requirement aims to protect prospective franchisees by ensuring they have access to the information Bft used to form its financial performance representations. By reviewing the substantiation, a franchisee candidate can assess the validity of the claims and make a more informed decision about investing in a Bft franchise. It is a standard practice in franchising to provide this type of documentation to maintain transparency and build trust between the franchisor and franchisee.
However, Bft only needs to provide substantiation for the financial performance representations that are included in Item 19 of the FDD. Bft is not obligated to provide substantiation for any other financial performance representations. Furthermore, if a prospective franchisee receives any financial performance information or projections of future income from other sources, such as employees or representatives of Bft, they should report it to Bft's management, the Federal Trade Commission, and the appropriate state regulatory agencies.