Are there any disclaimers associated with the Churchs Chicken financial statements in Exhibit K?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
E. Cajun makes no express or implied warranties or representations that Developer will achieve any degree of success in the development or operation of Franchised Restaurants and that success in the development and operation of Franchised Restaurants depends ultimately on Developer's efforts and abilities and on other factors, including, but not limited to, market and other economic conditions, Developer's financial condition and competition.
J. Developer has not received from Cajun or its affiliates, or anyone acting on their behalf, any representation of Developer's potential sales, expenses, income, profit or loss.
K. Developer has not received from Cajun or its affiliates, or anyone acting on their behalf, any representations other than those contained in the Church's Texas Chicken Franchise Disclosure Document as inducements to enter this Agreement.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
Based on the 2025 Churchs Chicken Franchise Disclosure Document, while the excerpts provided do not contain the full Exhibit K (Financial Statements), they do include disclaimers and acknowledgements that pertain to potential earnings, representations, and the franchisee's own investigation. Specifically, the franchisee acknowledges that Churchs Chicken makes no guarantees regarding the success of the restaurant, as it depends on the franchisee's efforts, market conditions, and other economic factors.
Furthermore, the document emphasizes that the franchisee has not received any representations about potential sales, expenses, income, profit, or loss from Churchs Chicken or its affiliates, except as contained within the Franchise Disclosure Document itself. This highlights the importance of relying solely on the information provided in the FDD and conducting independent due diligence.
Prospective franchisees should pay close attention to these disclaimers and acknowledgements. It is crucial to understand that Churchs Chicken does not provide any assurances of financial success, and the franchisee bears the ultimate responsibility for the restaurant's performance. It would be prudent for a potential franchisee to seek professional financial advice and conduct thorough market research before making a final investment decision. Additionally, they should verify that all information they relied upon during their decision-making process is documented within the FDD to protect their interests.