Does the Burros Fries franchise agreement acknowledge that the franchisee has reviewed financial performance representations within the Franchise Disclosure Document?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
We do not make Financial Performance Representations and have not included any such representations in the Franchise Disclosure Document.
Franchisee, and each Owner or other person related to Franchisee who executes this Agreement, acknowledges that neither we nor any officer, director, employee or agent of ours have made, and Franchisee has not received or relied upon, any express written or verbal information, representations, assurances, warranties, guarantees, inducements, promises or agreements concerning the actual, average, projected or forecasted franchise sales, revenues, profits, earnings, margins, or likelihood of success that Franchisee might expect to achieve from operating the Business (defined as "Financial Performance Representations"), except as may be in the Franchise Disclosure Document reviewed by Franchisee or its representatives.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the franchise agreement includes an acknowledgement that the franchisee has reviewed any financial performance representations that may be included in the FDD. The agreement states that neither Burros Fries nor its agents have made any express written or verbal guarantees regarding potential sales, revenues, profits, earnings, or the likelihood of success, except as explicitly stated in the Franchise Disclosure Document.
This acknowledgement confirms that the franchisee is entering the agreement with an understanding that any financial performance information they received is limited to what was provided in the FDD and that they did not rely on any other representations. It also reinforces that the franchisee has conducted their own independent investigation into the Burros Fries franchise opportunity.
This clause protects Burros Fries from potential claims that the franchisee was misled by financial projections or guarantees not included in the official FDD. It emphasizes the speculative nature of the business venture and the dependence on the franchisee's personal efforts for success. Prospective franchisees should carefully review any financial performance representations within the FDD and conduct thorough due diligence before signing the agreement.