Does Chocolate Bash authorize its employees or representatives to make representations about a franchisee's future financial performance?
Chocolate_Bash 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 Rasha Albasha, 5820 Casson Drive, Yorba Linda CA 92886, and 714-582-9166, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 34–35)
What This Means (2024 FDD)
According to Chocolate Bash's 2024 Franchise Disclosure Document, Chocolate Bash does not authorize its employees or representatives to make any representations, either orally or in writing, about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets.
However, if a prospective franchisee is purchasing an existing Chocolate Bash outlet, the franchisor may provide the actual records of that specific outlet. The FDD advises that if a potential franchisee receives any other financial performance information or projections of future income, they should report it to Chocolate Bash's management, the Federal Trade Commission, and the appropriate state regulatory agencies. The contact person at Chocolate Bash is Rasha Albasha, whose address and phone number are provided in the document.
This policy is typical in franchising, as franchisors generally avoid making income claims unless they have a reasonable basis and include the information in Item 19 of the FDD. This protects both the franchisor and franchisee from unrealistic expectations and potential legal issues. It is important for prospective franchisees to rely on the information provided in the FDD and to conduct their own independent research and due diligence, rather than relying on unauthorized representations.