Is Burros Fries making any representations about the past financial performance of company-owned or franchised outlets?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
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, Burros Fries does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. Burros Fries also does not authorize its employees or representatives to make any such representations either orally or in writing. However, if a prospective franchisee is purchasing an existing outlet, Burros Fries may provide the actual records of that outlet.
This means that Burros Fries is not providing any specific data or projections regarding the potential revenues, expenses, or profits that a franchisee might expect to achieve. This is a common practice among new or smaller franchise systems, as they may lack sufficient historical data to make reliable financial performance representations.
It is important for a prospective Burros Fries franchisee to understand that they will need to conduct their own independent financial analysis and due diligence to determine the potential profitability of a Burros Fries franchise. This may involve researching the local market, analyzing the competition, and developing a detailed business plan with financial projections. If a prospective franchisee receives any financial performance information or projections of future income from any other source, they should report it to Burros Fries's management by contacting Fernando Ruiz.
Given that Burros Fries does not provide financial performance representations, potential franchisees should seek detailed information about the factors that could influence their restaurant's financial success. This includes understanding the brand's market position, the level of support provided to franchisees, and the specific costs associated with operating the franchise. Speaking with existing franchisees can also provide valuable insights into the financial realities of running a Burros Fries restaurant.