Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Average Unit Volume of Franchised and Company-Owned Charley’s Grilled Subs Restaurants

by Franchise Chatter on June 13, 2012

in Franchise Earnings, Sub Sandwich Franchise



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Highlights of Charley’s Grilled Subs’ Financial Performance Representations Under Item 19 of Their 2011 FDD

  • Charley’s Grilled Subs restaurants serve a limited menu of fresh grilled steak and chicken subs, deli sandwiches, gourmet fries, grilled salads, and their signature lemonade.
  • The total investment necessary to begin operation of a Charley’s restaurant is $103,027 to $445,300 (excluding real estate and related costs). This includes $24,500 that must be paid to the franchisor.
  • The statement of average gross sales consists of the mean averages of reported annual gross sales of 28 company-owned restaurants and 309 franchisee-owned restaurants that were open during the entire 53-week reporting period ending December 31, 2010.
  • The statement of average gross sales excludes the results from 49 franchisee-owned restaurants that were not open during the entire 53-week reporting period ending December 31, 2010.
  • The gross sales of franchisee-owned restaurants were derived from unaudited financial reports submitted by franchisees for the purpose of computing royalties.  The gross sales of company-owned restaurants were compiled using generally accepted accounting principles, consistently applied.
  • This financial performance representation does not reflect the cost of sales, operating expenses, or other costs and expenses that must be deducted from gross sales to obtain net income or profit.


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