Does Burros Fries allow its representatives to provide written financial performance representations?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 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 by contacting: Fernando Ruiz: 4536 Bonita Rd., Bonita, CA 91902, Direct Line: (619) 773-6589 and Email: fer@burrosandfries.com.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 49–50)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the company does not authorize its representatives to make any financial performance representations, either orally or in writing. This means that prospective franchisees should not rely on any projections or promises made by Burros Fries employees or representatives regarding potential financial performance.
However, if a prospective franchisee is purchasing an existing Burros Fries outlet, the company may provide the actual records of that specific outlet. This exception allows potential buyers to review the financial history of the location they are considering, providing a more concrete basis for their investment decision.
The FDD also advises that if a prospective franchisee receives any other financial performance information or projections about future income, they should report it to Burros Fries's management. The contact information provided is Fernando Ruiz at 4536 Bonita Rd., Bonita, CA 91902, Direct Line: (619) 773-6589 and Email: fer@burrosandfries.com. This measure aims to ensure transparency and prevent unauthorized or misleading financial claims.
This policy is fairly standard in franchising, as franchisors typically want to control the financial information disseminated to potential franchisees to avoid liability. By disallowing unauthorized financial representations, Burros Fries aims to manage expectations and ensure that franchisees make informed decisions based on the official information provided in the FDD and, when applicable, the records of an existing outlet.