What assurance does Bor Restoration provide regarding a franchisee's potential earnings?

According to Bor Restoration's 2024 Franchise Disclosure Document, the company provides limited assurance regarding a franchisee's potential earnings. Bor Restoration states that they do not make any representations about a franchisee's future financial performance, nor do they authorize employees or representatives to make such representations, either orally or in writing. However, if a prospective franchisee is purchasing an existing outlet, Bor Restoration may provide the actual records of that outlet.

Bor Restoration does include historical data based on the unaudited financial statements from 16 of their 50 franchised businesses as of December 31, 2023. These 16 businesses had been open for at least 12 months. Eight of these businesses were located in Colorado, with the remainder located around the country. The 34 businesses not included either had franchise agreements signed in 2023 and had not been operating for a year, were transferred and did not have sales for the full 12 months, were closed, or did not provide reports for all 12 months of 2023.

Bor Restoration defines "Gross Sales" as all revenue and income actually received from the operation of the business, including revenue from clients directly billed, revenue from a client's insurance carrier, late fees, revenue generated over the billed amount, and any other amount charged to clients. Deductions from Gross Sales include all sales tax or similar taxes chargeable to clients by any taxing authority and collected by the franchisee. The figures provided do not show deductions for royalties, technology fees, and other fees paid to Bor Restoration based on a percentage of Gross Sales, costs of goods, employment costs, rent, or any other general or administrative expenses.

Bor Restoration explicitly states that while some outlets have earned certain amounts, individual results may differ, and there is no assurance that a franchisee will earn as much. They also state that written substantiation of the data used in preparing these data will be made available upon reasonable request and that the information presented has not been audited. Prospective franchisees are encouraged to investigate the costs and expenses they will incur in operating their franchised business and may consult current or former franchisees listed in the FDD.