Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Average, High, and Low Net Sales for Papa Murphy’s Take ‘N’ Bake Pizza Stores Systemwide

by Franchise Chatter on August 29, 2012

in Franchise Earnings, Pizza Franchises

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Highlights of Papa Murphy’s Item 19 Financial Performance Representations (2011 FDD) – Part 1

  • All stores included in this Item 19 are traditional stores, that is stores that are not located within another retailer’s space, such as a grocery or department store.
  • This analysis is prepared in two parts. The first part is based on 1,131 Papa Murphy’s Take ‘N’ Bake Pizza stores that were open and operating during the entire period of the company’s fiscal year ended January 3, 2011. These stores represent 30 company-owned stores and 1,101 franchise-owned stores (collectively referred to as “System Stores”).
  • The second part is based on the sales and operating costs of the 27 company stores that were owned and operated by the company for all of fiscal year 2010. Three company stores were acquired during the year from franchisees. The company does not have audited financial performance data (prior to their acquisition) for the stores that were acquired during the year; therefore, the three acquired stores are not included in this portion of the analysis.

Section 1 – Net Sales for System Stores

  • The Net Sales part of this analysis was prepared based on the operating results of the System Stores. The System Stores were divided into three categories based on Net Sales results:  top third (“High”), middle third (“Middle”), and low third (“Low”).

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