“Are these projections reliable?”

DEAR FRANBEST: I read in the company’s UFOC [Uniform Franchise Offering Circular disclosure document] under ITEM 19 that the company provides no information or representations of potential revenues or profits. However, the marketing packet they sent me contains a page entitled “Monthly Revenue Analysis” that shows that I can make from $21,150 to $35,250 revenue per month, with a monthly cost of $9,000. The salesman verified these numbers in an email. What do you think? Confused.

Dear Confused: I think you should grab your checkbook and run. The only way a franchisor can legally provide revenue or profit claims or projections of any kind is by using a prescribed formula in ITEM 19 of the UFOC. This franchisor is either knowingly or unknowingly providing illegal earnings claims. They are either dishonest, ignorant or both. SK