Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Sales Information for Company-Owned and Franchised World of Beer Stores (2013 FDD)

by Franchise Chatter on June 27, 2013

in Bar Franchise,Beer and Wine Franchise,Franchise Earnings,Retail Franchise



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Highlights of World of Beer’s Item 19 Financial Performance Representations (2013 FDD)

  • World of Beer Stores are retail alcohol establishments that simultaneously function as a bar (for on-premises consumption) and a retail outlet (for off-premises consumption). World of Beer Stores feature a unique pub atmosphere and informal ambiance where customers can relax and enjoy a wide selection of premium beers and wine, as well as cigars and food and other products.
  • Patrons can also peruse a wide selection of products available for retail purchase (similar to a liquor or convenience store). Emphasis is placed on high quality and exceptional customer service.
  • World of Beer Stores typically feature a selection of more than 500 premium beers and wine, with around 30 beers poured fresh on tap, at any given time.
  • Up until recently, with the exception of bar snacks (like pretzels), Stores did not serve any food, unless required by the local municipality, in which case the World of Beer Store serves a limited menu approved by the company in advance. However, World of Beer is now developing a food service menu and you will be required to follow the company’s rules on offering food when it adopts them.
  • As a matter of convenience to customers, relationships with neighboring restaurants are established to allow patrons to order food and have it delivered to them on-premises at the Store.
  • A typical World of Beer Store occupies approximately 2,000 to 3,000 square feet of space.

Explanatory Notes for Section 1 – Sales Information for Company-Owned Stores for Years 2010-2012

  • The following table shows certain information regarding sales of the World of Beer Store located in Tampa, Florida for the 2010, 2011, and 2012 fiscal years.
  • World of Beer Photo by jdeanphotoThe franchisor compiled the yearly sales information from information supplied by its affiliate, SZM, Inc. d/b/a World of Beer, related to its operation of the World of Beer Store in Tampa, Florida. This location is currently the only company-owned World of Beer Store (owned and operated by the company’s affiliate) that was open and operating for at least 12 full months as of December 31, 2012.
  • The Tampa World of Beer Store offers substantially the same products and services to the public as the type of World of Beer Store the company franchises. Likewise, the Tampa World of Beer Store receives substantially the same services as those the franchisor offers to new franchisees, except for centralized accounting, financial, and management services.
  • An additional company-owned World of Beer Store is owned and operated by the company’s affiliate, ZLF, LLC d/b/a World of Beer, and opened July 2, 2012 in Pensacola, Florida. The company did not include sales information for the Pensacola World of Beer Store in this Item 19 because that Store was open and operating less than 12 full months as of December 31, 2012.
  • “Sales” means all revenue derived from sales of products and services to customers of the store, but excluding sales, use, or service taxes; and customer refunds, adjustments, credits, and allowances.
  • The sales of World of Beer Stores are affected by seasonality. Generally, sales in the Tampa Bay market have been more favorable during the months of October through July. However, not every World of Beer Store will be similarly affected by seasonality due to a wide variety of factors, including location, proximity to tourist destinations and “snowbird” communities, population density of year-round residents, market draw, local advertising, and management efforts.

Explanatory Notes for Section 2 – Sales Information for Franchised Stores for Years 2011-2012

  • The first table shows certain information regarding sales of 19 franchised World of Beer Stores that were open and operating for at least 12 full months as of December 31, 2012. As of December 31, 2012, there were 33 franchised Stores and 2 company-owned Stores. Of the 33 franchised Stores, 19 were franchised Stores that had been open for at least 12 full months as of December 31, 2012.
  • The second table shows certain information regarding sales of 10 franchised World of Beer Stores that were open and operating for at least 12 full months as of December 31, 2011. As of December 31, 2011, there were 20 franchised Stores and 1 company-owned Store. Of the 20 franchised Stores, 10 were franchised Stores that had been open for at least 12 full months as of December 31, 2011.
  • These statements do not reflect costs or expenses.

Section 1 – Sales Information for Company-Owned Stores for Years 2010-2012



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