Does The Standardx make any representations about a franchisee's future financial performance?
The_Standardx Franchise · 2025 FDDAnswer from 2025 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 by contacting Dan Hansen, our Head of Americas Development, at 150 North Riverside Plaza, Chicago, Illinois 60606, (312) 750-1234, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — Financial Performance Representations (FDD page 81)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, The Standardx does not make any representations about a franchisee's future financial performance, nor does it make representations about the past financial performance of company-owned or franchised outlets. The Standardx also does not authorize employees or representatives to make such representations, either orally or in writing.
However, if a prospective franchisee is purchasing an existing outlet, The Standardx may provide the actual records of that outlet. The FDD stipulates that if a prospective franchisee receives any other financial performance information or projections of future income, they should report it to The Standardx's management, the Federal Trade Commission, and the appropriate state regulatory agencies. Dan Hansen, Head of Americas Development, can be contacted at 150 North Riverside Plaza, Chicago, Illinois 60606, (312) 750-1234.
This policy is typical in franchising. Franchisees should be wary of any financial projections made outside of the formal Item 19 disclosure, and should independently verify any claims about potential revenue or profits. By disclaiming financial performance representations, The Standardx shifts the responsibility for financial forecasting to the franchisee, who must conduct their own due diligence and market research.