Highlights of Pinkberry’s Item 19 Financial Performance Representations (2012 FDD)
- The franchisor offers License and Area Development Agreements for Pinkberry Shops. Pinkberry Shops provide a health-conscious, customer-oriented environment that specialize in frozen yogurt with fresh fruit and other toppings, and may offer a choice of yogurt, yogurt drinks, smoothies, frozen desserts, beverages, and other products and services.
- The franchisor offers two programs, although you may not be offered both:
- A single Shop. The total investment necessary to begin operation of a Pinkberry franchise ranges from $354,519 to $633,095. This includes the initial fee of $45,000 that must be paid to the franchisor or an affiliate.
- Multiple Shops within a defined area under an Area Development Agreement. You must pay the franchisor, upon the execution of an Area Development Agreement, a development fee equal to $45,000 for the first Shop plus $22,500 multiplied by the number of remaining Shops, which you must open in your first Development Period. You will pay the franchisor thereafter $22,500 for each Shop upon execution of a License Agreement for a Shop.
- The total investment necessary to begin operation under your Area Development Agreement ranges from $84,200 to $169,000. This includes the initial development fees of $67,500 to $135,000 that must be paid to the franchisor or an affiliate (the exact number varying depending on the number of Shops to be opened). This amount is exclusive of the amounts you will need to invest to open a single Shop under the License Agreement for a Shop.
- The financial performance representation figures below do not reflect the costs of sales, operating expenses, or other costs or expenses, that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.
Average Unit Volume
- Presented below is the gross sales information for the 12 month period ending February 26, 2012 for the 18 affiliate-owned and 66 licensed Pinkberry Shops that were open and in operation during all of the preceding 12 month period (i.e. a total of 84 Shops, located in New York City; Dallas, Texas; San Jose, CA; and the greater Los Angeles metropolitan area including San Diego, are included).
- The affiliate-owned Shops are substantially similar to those operated by franchisees.
- In addition to the 84 Shops that operated for the full 12 month period, (a) one affiliate-owned and six licensed Shops were closed during this 12 month period; and (b) an additional 34 licensed or affiliate-owned Shops opened during this 12 month period and were in operation less than 12 full months. These additional 34 Shops are not included in the gross sales information below.
- The information presented is based on the unaudited financial statements and records of the franchisor and the unaudited and unverified records of their franchisees.