Does the Burros Fries FDD include any financial performance representations in Item 19?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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 the 2024 Burros Fries Franchise Disclosure Document, Item 19 explicitly states that Burros Fries does not make any financial performance representations. This means that Burros Fries does not provide any information about the potential or actual financial performance of its franchised or company-owned outlets in Item 19.
This lack of financial performance representations means that prospective franchisees will not receive any specific data or projections regarding potential revenues, expenses, or profits. Typically, Item 19 is where a franchisor would include information like average sales, costs of goods, or net income of existing locations, which can help potential franchisees assess the financial viability of the franchise.
The FDD does state that if you are purchasing an existing Burros Fries outlet, the franchisor may provide the actual records of that specific outlet. Furthermore, if a prospective franchisee receives any financial performance information or projections from other sources, such as employees or representatives of Burros Fries, they are advised to report it to the franchisor's management by contacting Fernando Ruiz at the provided contact information. This is because Burros Fries does not authorize its employees or representatives to make any financial representations, either orally or in writing, and any such information should be viewed with skepticism.