Does the Dryer Vent Squad FDD include a profit and loss statement?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
We currently require all franchise owners to provide periodic revenue and other financial reports concerning their Franchises (They provide it through direct requests by our corporate team, or through the CRM system that they are required to report their monthly financial reports). In early 2024 we reconciled the revenue and other information provided by the franchisees relating to the operation of their Dryer vent Squad Business during 2023. We have presented 2023 financial information from 21 franchisees (the "Represented Franchise Owners") who collectively own 32 Dryer Vent Squad Businesses (the "Represented Franchises"), who have owned their businesses at least one (1) year as of December 31, 2023, and operated those franchises throughout all of 2023. We excluded 14 territories from this Item 19 that did not meet the criteria.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 50–51)
What This Means (2024 FDD)
The 2024 Dryer Vent Squad Franchise Disclosure Document does not include a full, formal profit and loss statement. However, Item 19, concerning Financial Performance Representations, indicates that Dryer Vent Squad collects revenue and other financial reports from its franchisees.
Specifically, Dryer Vent Squad states that in early 2024, they reconciled revenue and other information provided by franchisees relating to the operation of their Dryer Vent Squad Business during 2023. They then presented 2023 financial information from 21 franchisees, who collectively owned 32 Dryer Vent Squad Businesses, and who had owned their businesses for at least one year as of December 31, 2023, and operated those franchises throughout all of 2023. Dryer Vent Squad excluded 14 territories from this Item 19 that did not meet the criteria.
This financial data is used to generate the financial performance representations in Item 19. While a full profit and loss statement is not provided, the FDD offers some insight into the financial performance of existing Dryer Vent Squad franchises based on the data collected.