Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average Annual Sales and Sales Growth of Nothing Bundt Cakes Bakeries (2013 FDD)

by Franchise Chatter on June 19, 2013

in Bakery Franchise,Franchise Earnings



Franchise Chatter Membership Information

Highlights of Nothing Bundt Cakes’ Item 19 Financial Performance Representations (2013 FDD)

  • This Item sets forth the average gross sales for Nothing Bundt Cakes’ franchisee and affiliate operated Bakeries open and operating the entire 2011 and 2012 calendar years.
  • This analysis does not contain information regarding costs associated with starting up and operating a Bakery.
  • The data presented is for established Bakeries open and operating for at least 24 months as of December 31, 2012, including two Bakeries operated by Nothing Bundt Cakes’ founders.
  • The company does not make financial performance representations regarding additional Bakeries in a Territory or Bakeries operated at Non-Traditional Sites.

Explanatory Notes for Part I – Affiliate-Operated Nothing Bundt Cakes Bakeries’ Annual Gross Sales and Growth in Annual Gross Sales

  • Nothing Bundt Cakes Photo by felsullPart I sets forth the average annual gross sales for 2 Bakeries operated by the company’s affiliate Denbra, Inc. in Las Vegas, Nevada (the “Affiliate Bakeries”) for the calendar years January 1, 2011 through December 31, 2011 and January 1, 2012 through December 31, 2012 (the “Measurement Period”).
  • The table below sets forth the Annual Gross Sales, Average Annual Gross Sales, and the Percentage Growth in Average Annual Gross Sales achieved by the Affiliate Bakeries during the Measurement Period.
  • Annual Gross Sales equals all revenues earned by all of the Affiliate Bakeries from any business conducted at, from, or through their Bakeries.
  • The Average Annual Gross Sales for the Affiliate Bakeries during the 2011 and 2012 calendar years was calculated by taking the sum of the Affiliate Operated Bakeries’ Annual Gross Sales during 2011 and 2012 respectively, and dividing it by 2.
  • The Percentage Growth in Annual Gross Sales for the Affiliate Bakeries was calculated by taking the sum of the Annual Gross Sales for the Affiliate Bakeries during 2012, subtracting it by the sum of the Annual Gross Sales for the Affiliate Bakeries during 2011, and dividing that number by the sum of Annual Gross Sales during 2011.

Explanatory Notes for Part II – Reporting Franchisees’ Average Annual Gross Sales and Growth in Average Annual Gross Sales

  • Part II of this Item sets forth the average annual gross sales of 21 franchisees who have been operating Nothing Bundt Cakes Bakeries for at least 24 months as of December 31, 2012, and provided the franchisor with complete gross sales data for the Measurement Period (“Reporting Franchisees”).
  • Nothing Bundt Cakes excluded the data of 40 remaining franchisees that were not open and operating for the full Measurement Period or who did not provide complete gross sales data.
  • The table below sets forth the Average Annual Gross Sales and the Percentage Growth in Average Annual Gross Sales achieved by the Reporting Franchisees during the Measurement Period.
  • Annual Gross Sales equals all revenues earned by all of the Reporting Franchisees from any business conducted at, from, or through their Bakeries.
  • The Average Annual Gross Sales for the Reporting Franchisees was calculated by taking the sum of the Reporting Franchisees’ Annual Gross Sales and dividing it by the total number of Reporting Franchisees.
  • In 2011, 9 of the 21 Reporting Franchisees had Annual Gross Sales that were greater than the Average Annual Gross Sales for that year. In 2012, 10 of the 21 Reporting Franchisees had Annual Gross Sales that were greater than the Average Annual Gross Sales for that year.
  • The Percentage Growth in Average Annual Gross Sales was calculated by taking the difference between the Average Annual Gross Sales achieved by the Reporting Franchisees in 2012 and 2011, and dividing it by the Average Annual Gross Sales in 2011.

Part I – Affiliate-Operated Nothing Bundt Cakes Bakeries’ Annual Gross Sales and Growth in Annual Gross Sales



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