What assurance does Fly To Fit provide regarding a franchisee's potential sales or earnings?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Notes:
-
- Some outlets have sold and earned this amount. Your individual results may differ. There is no assurance that you'll sell or earn as much.
Except for what is included in this Item 19, 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 by contacting, Tina Murphy and Ian Murphy, 1814 Central Ave, Albany, NY 12205, and 518-605-3385, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–41)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the franchisor provides limited assurance regarding a franchisee's potential sales or earnings. The FDD includes historical financial performance representations based on the company-owned outlet from January 1, 2023, to December 31, 2023. This data includes a sales figure of $221,095.66, a total cost of goods sold of $311.21, and total operating expenses of $104,597.43, resulting in a net income of $118,387.75. However, Fly To Fit explicitly states that these figures are not projections of future performance for franchise-owned locations.
Fly To Fit emphasizes that while some outlets have achieved these financial results, individual outcomes may vary. The FDD clearly states, "There is no assurance that you'll sell or earn as much." This disclaimer is crucial for prospective franchisees, highlighting the risk that their financial performance could differ significantly from the company-owned outlet's past performance. The franchisor does not authorize its employees or representatives to make any representations about a franchisee's future financial performance, either orally or in writing, except when providing actual records of an existing outlet being purchased.
Prospective franchisees should carefully consider this lack of assurance and the disclaimer regarding potential earnings. While the FDD offers historical data, it does not guarantee similar results for new franchise locations. Franchisees are encouraged to conduct their own independent research and due diligence, including market analysis and financial planning, to assess the viability of a Fly To Fit franchise in their specific location. Furthermore, the FDD notes that written substantiation of the information in Item 19 will be made available to prospective franchisees upon reasonable request, which could provide additional insights into the company's financial performance.