Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average Gross Sales of Affiliate-Owned Rosati’s Pizza Restaurants (2013 FDD)

by Franchise Chatter on October 1, 2013

in Franchise Earnings,Pizza Franchises



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Highlights of Rosati’s Pizza’s Item 19 Financial Performance Representations (2013 FDD) – Part 1

  • The following is a statement of the average gross sales of 9 affiliate-owned Rosati’s Pizza restaurants for the calendar year 2012. “Affiliate-owned” as used in this financial performance representation means owned in total or in part by one or more shareholders of Rosati’s Franchising, Inc.
  • Rosati's Pizza Photo by bhulykThe affiliate-owned restaurants included in the average were (i) in operation for the full 12 months of 2012, (ii) were affiliate-owned for the full 12 month period, and (iii) operated as either a carry-out/delivery restaurant or a carry-out/delivery restaurant with some seating for dining in. The affiliate-owned Rosati’s Pizza restaurants included in this statement are substantially similar to the operations of Rosati’s Pizza franchised restaurants.
  • As of December 31, 2012, there were 13 affiliate-owned Rosati’s Pizza restaurants in operation. 4 of the 13 affiliate-owned restaurants were excluded from the average for the following reasons:  (1) the franchisor did not receive gross sales data from 2 of the restaurants; (2) one restaurant was not in operation for a full 12 months and not owned by an affiliate for the full 12 months; (3) one restaurant has a sports pub in addition to the dine-in seating.
  • The information was compiled by monthly sales tax returns that were filed by the affiliates and copies provided to the franchisor. This information has not been audited and the franchisor has not taken any steps to independently verify the accuracy of the information submitted by the affiliates.
  • Gross Sales as used in this financial performance representation means the total gross sales derived from the operation of the restaurant in 2012 from all sales of food and beverages made in, upon, or from the restaurant, whether for cash, check, credit, or otherwise, less sales tax collected from customers and paid to the applicable tax authorities. No other offsets, such as discounts, coupons, or refunds, were made to the total gross sales numbers reported on the sales tax returns.
  • The affiliate-owned restaurants included in the average have been in business for a period of time ranging from 6 years to 49 years. A newly established restaurant without brand recognition in the local market or a customer base cannot expect to initially experience the same level of gross sales as the gross sales of established businesses.
  • 6 of the affiliate-owned restaurants included in the average are carry-out/delivery locations and 4 of the affiliate-owned restaurants included in the average offer carry-out and delivery services and have some seating for dining in (Ambrosio’s note: There were only 9 affiliate-owned restaurants included in the average). One of the 4 restaurants that have dine-in seating has a much larger seating capacity than the typical Rosati’s Pizza franchised restaurant.
  • 7 of the affiliate-owned restaurants are located in the greater Chicago, Illinois area where the brand was first established in 1964. Accordingly, the results achieved by these affiliate-owned restaurants may not be typical of those that may be achieved in a prospective franchisee’s area.
  • This financial performance representation does not include any information on expenses or costs that you are likely to incur in operating a Rosati’s Pizza restaurant. Likewise, it does not include information concerning profits that may be realized in the operation of a Rosati’s Pizza restaurant.
  • The affiliate-owned restaurants included in the average below offer substantially the same menu items that will be offered by new franchised restaurants that operate either a carry-out/delivery restaurant or a restaurant offering carry-out, delivery, and some limited seating for dining in.


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