Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Wild Birds Unlimited’s System Wide Fiscal Year 2009-2011 Gross Sales, and Fiscal Year 2011 Gross Sales by Years of Operation

by Franchise Chatter on November 21, 2012

in Franchise Earnings, Retail Franchise



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Highlights of Wild Birds Unlimited’s Item 19 Financial Performance Representations (2012 FDD) – Part 1

  • A Wild Birds Unlimited franchisee operates a retail store that sells birdfeeders, birdseed, and nature-related gifts.
  • The total investment necessary to begin operation of a Wild Birds Unlimited store is from $99,832 to $157,344 for a new franchisee ($88,332 to $145,844 for an existing franchisee who is purchasing an additional Wild Birds Unlimited franchise). This includes an amount of $23,262 that must be paid to the franchisor.
  • Provided below are seven schedules that provide certain information regarding Gross Sales, Cost of Goods Sold, Wages, Advertising Expenses, and Adjusted Net Operating Income as reported by franchisees.

Preliminary Items

  • Wild Birds Unlimited Franchise PhotoWild Birds Unlimited compiled the gross sales information in this financial performance representation from its franchisees’ monthly sales reports and annual financial statements submitted to the franchisor (the “P & L Statements”).
  • The stores in this financial performance representation range in age from 1 to over 30 years of operation.
  • The financial performance information provided for each 12-month period excludes stores that were not operational during the entire 12-month period.
  • This information is not audited, and the franchisor has not verified nor does it warrant the accuracy of the information or the method used by each franchisee in its computation.
  • The stores included in this financial performance representation represent a variety of geographic and demographic circumstances. These variations include: 1) the total population of the city in which the store is located ranges from over 700,000 to less than 1,000; 2) stores are located in a diverse variety of locations throughout the United States and Canada (the Canadian results have been adjusted to U.S. dollars); 3) a number of cities in which the stores are located are suburbs of larger metropolitan areas; and 4) some stores located in areas with small populations are in areas with a substantial amount of “tourist” traffic.
  • The stores listed in this financial performance representation are generally located in neighborhood or regional strip shopping centers or freestanding buildings. The franchisor makes no representations regarding the relative level of first year sales that the various types of locations have experienced.
  • Several of the stores included in this financial performance representation operate temporary seasonal kiosks. These sales are included in this Item 19 data as part of the franchisees’ gross sales.
  • Gross Sales is defined as the sales price of all merchandise and services sold, including cash and charge sales of every kind made at the store, and mail, internet, or telephone orders received or taken at the store.

Schedule 1 – System Wide Fiscal Year 2009-2011 Gross Sales



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