(Ambrosio’s note: Welcome to FDD Talk 2.0, a more comprehensive version of our flagship content, featuring not only the Item 19 financial performance representations of select franchises, but their estimated initial investment, unit growth, and other key items of their 2012 FDD as well.)
Highlights of Einstein Bros. Bagels’ 2012 Franchise Disclosure Document – Part 3
Other Fees Under the Franchise Agreement
- Royalty Fee: 5% of Gross Sales. Gross Sales means all revenue related to the Restaurant (excluding customer refunds, discounts, and sales taxes collected and remitted to the proper authorities.)
- Marketing Contribution: 4% of Gross Sales
- Grand Opening Marketing Program: $10,000, spent to promote the Grand Opening of your Restaurant. You must submit a marketing plan for the franchisor’s review and approval.
Systemwide Outlet Summary for Years 2009 to 2011
Franchised (2009)
- Outlets at the Start of the Year: 2
- Outlets at the End of the Year: 6
- Net Change: +4
Franchised (2010)
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 19
- Net Change: +13
Franchised (2011)
- Outlets at the Start of the Year: 19
- Outlets at the End of the Year: 23
- Net Change: +4
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