Highlights of Cosi’s Item 19 Financial Performance Representations (2013 FDD) – Part 2
- Table 2 reflects the results of the 55 Cosi Restaurants that are owned and operated by franchisees and that were open during all of the company’s fiscal year 2011 (and excludes one location that was closed for renovations for 4 months in 2011).
- Including the location closed for 4 months in 2011, these 56 Restaurants have been open, on average, approximately 42 months as of FYE 2011.
- The average sales data is compiled by using the sales reports for each franchisee in the sample during the company’s fiscal year 2011, as reported by the franchisees to the company. The franchisor has not audited or verified the reports, nor have franchisees confirmed that their reports are prepared in accordance with generally accepted accounting principles.
- The sample includes only franchisees who were operating during all of 2011 and who were operating for at least 14 months.
- Table 2 shows the mean average sales, the number (and percentage) of franchised Cosi Restaurants which exceeded the mean average sales reflected for each category, and the median averages (i.e. 50% above and below average) for the categories.
- The data below does not reflect the cost of sales, cost of goods, operating expenses, or other costs or expenses that must be deducted from gross revenue or gross sales to obtain a net income or net profit figure. Franchisees are not required to report this data to the company, and the franchisor does not have these operating costs for franchisees.
- While Table 1 of this Item 19 includes certain cost data for company-owned Cosi Restaurants, you should not rely on or utilize those cost figures as estimates for your operating costs. Franchised Cosi Restaurants operate under the same System and with similar operating procedures and requirements, as that under which company-owned Restaurants operate. However, franchised Cosi Restaurants will incur certain types of franchise-specific expenses (for example, royalty payments) that company-owned Restaurants may not.