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FDD Talk: Sales and Store Level Operating Costs for Papa Murphy’s Take ‘N’ Bake Pizza Company Stores

Last updated on August 30, 2012 by Franchise Chatter Leave a Comment
in Franchise Earnings, Pizza Franchises

Highlights of Papa Murphy’s Item 19 Financial Performance Representations (2011 FDD) – Part 2

  • The following analysis is based on 27 company stores owned and operating during the entire period of Papa Murphy’s fiscal year ended January 3, 2011. The average annual Net Sales for these 27 stores for that period was $436,098. Of the 27 stores, 12 met or exceeded this average.
  • Each of the 27 company stores used a uniform accounting system, and the data pertaining to the company stores was prepared on a basis consistent with generally accepted accounting principles during the applicable period.
  • The sales, discounts, and expenses of the 27 company stores were divided into three categories. Company stores with annual Net Sales in excess of $474,005 were placed in the High category; company stores with annual Net Sales ranging between $393,976 and $468,930 were placed in the Middle category; and company stores with annual Net Sales below $326,390 were placed in the Low category.
  • Of the 27 company stores owned and operated for the entire period of the company’s fiscal year ended January 3, 2011, 26 were included in the April 2010 Franchise Disclosure Document and 1 store was open all weeks after being temporarily closed in 2009.
  • Papa Murphy’s fiscal year is based on 12 periods, rather than a full calendar year. The company’s fiscal year ends on the Monday closest to December 31. Therefore, the 2010 fiscal year ended on January 3, 2011.

Section II – Sales and Store Level Operating Costs for Company Stores (expense percentages are of sales, net of discounts for fiscal year 2010)



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