Does Fitstop authorize its representatives to make any representations about financial performance in writing?
Fitstop 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, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 47)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop does not authorize its employees or representatives to make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets, either orally or in writing. However, if a prospective franchisee is purchasing an existing outlet, Fitstop may provide the actual records of that outlet.
This policy means that potential Fitstop franchisees should not rely on any financial performance claims made by Fitstop representatives unless those claims are documented in Item 19 of the FDD or provided as actual records of an existing outlet being purchased. It is a standard practice in franchising to restrict financial performance representations to the FDD to ensure accuracy and consistency.
Fitstop advises that if a prospective franchisee receives any other financial performance information or projections of future income, they should report it to Fitstop's management, the Federal Trade Commission, and the appropriate state regulatory agencies. This is to protect both the franchisee and the integrity of the Fitstop franchise system.