Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

FDD Talk 2013: Average Gross Sales, Costs, and Operating Results of Certain Orange Leaf Frozen Yogurt Stores (2013 FDD)

by Franchise Chatter on June 10, 2013

in Franchise Earnings,Frozen Yogurt Franchises



Franchise Chatter Membership Information

Highlights of Orange Leaf Frozen Yogurt’s Item 19 Financial Performance Representations (2013 FDD)

  • Orange Leaf Frozen Yogurt’s financial performance representation contains (1) the actual 2012 average gross sales of certain Orange Leaf Frozen Yogurt Stores in operation during the entire 2012 calendar year (Part I, below); (2) certain adjusted average annual expenses of affiliate-owned Orange Leaf Frozen Yogurt Stores in operation as of December 31, 2o12 (Part II, below); and (3) the adjusted 2012 operating results of 2 affiliate-owned Orange Leaf Frozen Yogurt Stores (Part III, below).

Explanatory Notes for Part I – Actual 2012 Average Gross Sales of Certain Franchised and Affiliate-Owned Orange Leaf Frozen Yogurt Stores

  • Orange Leaf Fruit CupThe financial performance representation in this Part I contains the actual 2012 average annual gross sales of 76 franchisee-owned Orange Leaf Frozen Yogurt Stores and 3 affiliate-owned Orange Leaf Frozen Yogurt Stores that were open during the entire 2012 calendar year.
  • These 79 outlets represent approximately 37% of the total 215 outlets open for business as of December 31, 2012. Outlets that were not in operation for all of 2012 have been excluded from the financial performance representation as their partial year performance is not indicative of the performance one would reasonably expect to see over an entire calendar year.
  • Orange Leaf has also excluded those outlets that were opened under its predecessor, OT Franchising, Inc., because these predecessor outlets operate under materially different conditions than a typical franchised outlet, such as from locations that would not meet the company’s current standards for an acceptable location based on size, demographics, or type of building.
  • The actual average gross sales numbers do not reflect the costs of sales, operating expenses, or other costs or expenses, that must be deducted from revenue to obtain net income or profit.

Explanatory Notes for Part II – Certain Average Costs of Affiliate-Owned Orange Leaf Frozen Yogurt Stores

  • The financial performance representation in this Part II contains certain average annualized expenses of the 14 affiliate-owned Orange Leaf Frozen Yogurt Stores open for business as of December 31, 2012.
  • In calculating the reported averages, Orange Leaf excluded from each expense category for a given month, the expense of any outlet that experienced an unusual cost savings. For example, if an outlet negotiated a significant rent reduction for the first three months of its lease, Orange Leaf excluded that outlet’s rent expense from the average for those three months.
  • Orange Leaf also excluded the management fee expense that each of these outlets pays to a general manager that oversees operations at multiple locations, a fee that would not be experienced by a typical franchisee.
  • In addition, if an outlet opened during 2012, Orange Leaf has annualized their expenses to provide an estimate of what that outlet would have experienced had it been opened for the entire 12 months ending December 31, 2012.

Explanatory Notes for Part III – Operating Results of Certain Affiliate-Owned Orange Leaf Frozen Yogurt Stores

  • The financial performance representation in this Part III contains the adjusted operating results of 2 affiliate-owned Orange Leaf Frozen Yogurt Stores since their inception in May 2011. These results are based on the internally-prepared financial statements of these affiliates and have not been audited.
  • Orange Leaf has excluded franchised outlets because it does not receive reliable expense reports for franchised outlets.
  • Orange Leaf has only included information for these 2 affiliate-owned outlets because these outlets have been operated under its current POS system for their entire existence, and therefore have the most complete and uniform set of operation data of all Orange Leaf affiliate-owned outlets. In addition, these outlets have the most typical operating conditions of all affiliate-owned outlets.
  • These 2 outlets represent 14% of the 14 total affiliate outlets open for business as of December 31, 2012 and they represent 0.93% of the 215 outlets open for business as of December 31, 2012.
  • Because these affiliates do not pay Royalty Fees and Advertising Fees at the same rate as a franchisee-owned outlet, Orange Leaf has adjusted the results to include what these outlets would have paid for Royalty Fees and Advertising Fees if they had been franchised outlets paying at the current rates.

Part I – Actual 2012 Average Gross Sales of Certain Franchised and Affiliate-Owned Orange Leaf Frozen Yogurt Stores

Annual Average Gross Sales



To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.



Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment - See more at: http://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf
Print Friendly

Previous post:

Next post: