Does the Fitstop FDD include any financial projections?
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 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2024 FDD)
According to the 2024 Fitstop Franchise Disclosure Document, Fitstop does not make any representations about a franchisee's future financial performance, nor does it provide information about the past financial performance of company-owned or franchised outlets. Fitstop also does not authorize its employees or representatives to make any such representations either orally or in writing.
However, if a prospective franchisee is purchasing an existing Fitstop outlet, Fitstop may provide the actual records of that specific outlet. The FDD cautions potential franchisees that if they receive any other financial performance information or projections of their future income, they should report it to Fitstop's management, the Federal Trade Commission, and the appropriate state regulatory agencies.
This lack of financial performance representations is a common practice among franchisors. Prospective franchisees should be aware that they will need to conduct their own independent financial analysis and due diligence to determine the potential profitability of a Fitstop franchise. This may involve creating their own financial projections based on market research, local economic conditions, and the specific terms of the franchise agreement.