What should a prospective franchisee do if they receive projections of future income from Burros Fries representatives?
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 authorize its employees or representatives to make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, either orally or in writing. The only exception is if you are purchasing an existing outlet, in which case Burros Fries may provide you with the actual records of that outlet.
If a prospective Burros Fries franchisee receives any other financial performance information or projections of their future income, they should report it to the franchisor's management. The contact information to report this is Fernando Ruiz: 4536 Bonita Rd., Bonita, CA 91902, Direct Line: (619) 773-6589 and Email: fer@burrosandfries.com.
This policy is in place to ensure that prospective franchisees are not misled by potentially inaccurate or unsubstantiated financial projections. By reporting unauthorized financial performance information, prospective franchisees can help Burros Fries maintain transparency and prevent misrepresentations. This also protects the franchisee from making decisions based on potentially unrealistic expectations. It is common practice in the franchise industry for franchisors to restrict who can provide financial performance representations, and to require that such representations be included in the FDD.