Does Crown Gold Exchange provide any assurance that a franchisee will achieve the same sales or earnings as some outlets?

According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the company does not assure prospective franchisees that they will achieve the same sales or earnings as existing outlets. While Item 19 includes historical financial performance representations based on data from seven company-owned outlets, Crown Gold Exchange explicitly states that individual results may vary. The FDD indicates that there is no guarantee a franchisee will sell or earn as much as the company-owned locations. The historical financial data is derived from seven company-owned outlets in California, opened between October 2010 and March 2013. These outlets are claimed to not materially differ from future franchise-owned outlets.

The financial performance data provided includes gross sales per location for the period of January 1, 2023, to December 31, 2023. For example, the Rancho Santa Margarita, CA location had sales of $5,000,771, while the Ontario, CA location had sales of $2,334,860. The document also shows an estimated royalty fee of $12,000 for each location. However, Crown Gold Exchange emphasizes that these figures are historical and do not include operating expenses such as cost of goods sold, labor, advertising, and rent, which franchisees will need to consider to understand their net income.

Prospective franchisees should carefully review Item 19 and understand that the provided financial performance data is not a guarantee of future results. Crown Gold Exchange encourages potential franchisees to report any unauthorized financial performance information or projections to the franchisor's management, the Federal Trade Commission, and appropriate state regulatory agencies. It is standard practice in the franchise industry for franchisors to avoid guaranteeing specific financial outcomes, as various factors, including location, management skills, and local market conditions, can significantly impact a franchisee's performance.