Does Fitstop make any representations about a franchisee's future financial performance?
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 make any representations about a franchisee's future financial performance, nor do they provide information regarding the past financial performance of company-owned or franchised outlets. This means that Fitstop does not offer any guarantees or projections regarding potential revenue, profits, or sales volumes that a franchisee might achieve. Furthermore, Fitstop does not authorize its employees or representatives to make any financial performance representations, either verbally or in writing.
This policy is fairly common in the franchise industry, as many franchisors prefer not to make financial performance representations due to the numerous factors that can influence a franchisee's success. These factors can include location, management skills, local market conditions, and the franchisee's own efforts.
However, there is an exception: if a prospective franchisee is considering purchasing an existing Fitstop outlet, Fitstop may provide the actual financial records of that specific outlet. This allows the potential buyer to review the historical performance of the location they are considering.
The FDD also includes an acknowledgement that neither Fitstop nor anyone acting for them has made any promises or representations concerning sales volumes, profits, likelihood of success, or any other matter in connection with the proposed franchise, other than those set forth in the Franchise Agreement. It is the franchisee's responsibility to ensure any promises are written into the agreement, otherwise they cannot be relied upon.