This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.
Highlights of Abrakadoodle’s Item 19 Financial Performance Representations (2012 FDD)
- As an Abrakadoodle franchisee, you will operate a business that provides arts education programs for 20-month-old to 12-year-old children.
- The total investment necessary to begin operation of an Abrakadoodle franchised business ranges from $35,842 to $74,492. This includes from $32,492 to $59,992 that must be paid to the franchisor.
Average, High, and Low Gross Sales of Franchised Businesses
- On December 31, 2011, Abrakadoodle had 39 franchise owners. Of those franchise owners, 5 had been operating franchise units for less than 1 year, 1 had been inactive in 2011 for personal reasons, and 33 had been operating franchise units for at least 1 year.
- The following information is based on Gross Sales reports submitted by the 33 franchise owners, representing 42 franchise units, who had been operating franchise units for at least 1 year. These reports were not audited, and the company has not undertaken steps to independently verify the accuracy of the information in the reports or determine whether the reports were prepared in accordance with generally accepted accounting principles.
- The two company units were excluded from the Gross Sales information below.
- The Gross Sales presented do not reflect cost of sales, payroll and related expenses, rent, office expenses, other expenses, amortization, depreciation, income taxes or other taxes, or debt service obligations.
Top 33% of Franchise Owners (11 Franchise Owners with a Total of 18 Operating Units)