Does Browns Chicken provide any financial performance representations about franchisee's future financial performance in Item 19?
Browns_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owed or franchised outlets. We also do not authorize our employees or representatives to make the 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 our management by contacting Tim Falconio, at 55 E. Park Blvd., Villa Park, Illinois 60181, Telephone: (630) 359-5358, the Federal Trade Commission and any appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Browns Chicken Franchise Disclosure Document, Browns Chicken does not make any representations about a franchisee's future financial performance, nor does it provide information on the past financial performance of company-owned or franchised outlets. Browns Chicken also does not authorize its employees or representatives to make such representations, either orally or in writing.
However, if a prospective franchisee is purchasing an existing Browns Chicken outlet, Browns Chicken may provide the actual records of that specific outlet. The FDD advises that if a potential franchisee receives any other financial performance information or projections of future income, they should report it to Browns Chicken's management, the Federal Trade Commission, and any appropriate state regulatory agencies. The contact person at Browns Chicken for such reports is Tim Falconio.
This policy is fairly common in the franchise industry, as franchisors often avoid making specific financial projections to avoid potential liability. Prospective franchisees should be cautious about any financial projections or promises made by anyone other than the official representatives of Browns Chicken and should always conduct their own independent financial analysis before investing in a franchise.