Highlights of BurgerFi’s Item 19 Financial Performance Representations (2013 FDD)
- As of January 1, 2013, there were 12 franchised and affiliate-owned BurgerFi Restaurants open and operating. Two of these Restaurants — both affiliate-owned — were open and operating throughout 2012, while the other 10 Restaurants that were open and operating on January 1, 2013 had not been in operation for a full year, and over half were opened in the second half of the year.
- The information appearing in the table below presents selected financial performance results for 2012 for these two Restaurants.
- Restaurant #2 is BurgerFi’s showcase store, and has increased costs due to research and development. In addition, the expense category labor includes the costs for its trainers and valet parking, expenses typically not present for franchised Restaurants.
- Operating expenses include advertising, direct operating, promotions, supplies, uniforms, repairs, maintenance, utilities, administrative taxes, professional fees, Royalty Fees, required contributions to the Brand Development Fund and any other required marketing expenditures.
- Labor expenses include payroll and payroll taxes.
- Restaurant 1 leases approximately 2,540 square feet at $47.88 per square feet (per year) and Restaurant 2 leases approximately 3,000 square feet at $88.01 per square feet (per year). The amounts shown include other occupancy expenses such as common area maintenance, real estate taxes, and insurance.
- “Gross Profit Less Selected Expenses” has been calculated using only the selected financial data shown below.
- The two affiliate-owned BurgerFi Restaurants whose results appear in this Item 19 are: Burgers Inc. (Restaurant #1 below) that opened in February 2011 is located in Lauderdale by the Sea, Florida; and BurgerFi-Delray Beach LLC (Restaurant #2 below) that opened in August 2011 is located in Delray Beach, Florida.
- The financial performance information appearing in this Item 19 also does not include other expenses which all franchisees will incur, such as debt service, income taxes, depreciation and amortization, franchisee-specific expenses such as investor draws and distributions, and others.
- The results shown in Item 19 were prepared from data compiled in the ordinary course of business by the affiliates’ employees. The results are unaudited.
- Franchised Restaurants operate under the same system and with similar operating procedures and requirements as the two Restaurants whose results appear in this Item 19.