Besides Item 19 of the Franchise Disclosure Document, what other representations regarding profits of the Byrider franchise are franchisees allowed to rely on?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 No Representations Regarding Profits of the Franchise. No representations have been made by the Company or by its officers, directors, shareholders, employees or agents, and relied upon by the Franchisee as to future or past income, expenses, sales volume or potential profitability, earnings or income of the business franchised hereby, or any other franchisee, other than information provided in Item 19 of the Company's Franchise Disclosure Document.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, prospective franchisees are explicitly cautioned against relying on any representations regarding potential profitability outside of Item 19. Byrider emphasizes that no promises or guarantees concerning future or past income, expenses, sales volume, or earnings have been made by the company, its officers, directors, shareholders, employees, or agents, except as detailed in Item 19 of the Franchise Disclosure Document.
This disclaimer serves to protect Byrider from potential legal claims based on overly optimistic projections or informal discussions about earnings potential. It places the onus on the franchisee to conduct their own independent investigation and due diligence to assess the viability of the franchise opportunity. Byrider underscores that the success of the franchise depends largely on the franchisee's own business acumen, efforts, and other external factors beyond the company's control.
For a prospective Byrider franchisee, this means that any financial projections or income claims not explicitly stated in Item 19 should be viewed with extreme skepticism. Franchisees should rely on their own market research, financial analysis, and professional advice to determine if the Byrider franchise aligns with their investment goals and risk tolerance. Contacting existing franchisees, as suggested in the FDD, can provide valuable insights, but it's crucial to remember that individual results may vary.
This practice is common in franchising, as franchisors generally avoid making specific profit guarantees to mitigate legal risks and ensure that franchisees understand the inherent uncertainties of business ownership. Item 19 provides a standardized, legally vetted financial performance representation that franchisees can use as a starting point for their own financial planning, but it should not be the sole basis for their investment decision.