Does Item 19 of the Boulder Designs FDD include any financial performance representations?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential 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 outlet, 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 the franchisor's management at 2324 N. Robinson Drive, Waco, Texas 76706, (877) 892-2954, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 44)
What This Means (2025 FDD)
According to Boulder Designs's 2025 Franchise Disclosure Document, Item 19 explicitly states that the company does not make any financial performance representations. This means Boulder Designs does not provide any data regarding the potential or actual financial performance of its franchises, whether company-owned or franchised.
This lack of financial performance data in Item 19 has significant implications for potential franchisees. Without this information, prospective franchisees must conduct their own independent research and due diligence to assess the potential profitability of a Boulder Designs franchise. This may involve market research, analyzing the local competition, and estimating potential revenue and expenses.
The FDD does state that if a prospective franchisee is purchasing an existing Boulder Designs outlet, the franchisor may provide the actual records of that specific outlet. Furthermore, the document instructs potential franchisees to report to Boulder Designs' management, the Federal Trade Commission, and appropriate state regulatory agencies if they receive any unauthorized financial performance information or projections. This is a standard disclosure intended to protect both the franchisee and the integrity of the franchise system.