Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Income Statement Summary for Company-Owned Church’s Chicken Restaurants

by Franchise Chatter on December 23, 2012

in Chicken Franchises, Franchise Earnings



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Highlights of the Item 19 Financial Performance Representations of Church’s Chicken (2012 FDD) – Part 2

  • The following is a summary based on Cajun Operating’s unaudited financial statement for fiscal year 2011 f0r restaurants that meet all of the following criteria: (1) owned by the company’s wholly-owned subsidiary, Cajun Restaurants LLC, (2) free-standing “Tower” prototype, and (3) operated by the company’s predecessor, Cajun Operating, for all of 2011.
  • Church's Fried Chicken Photo by JC03The section below excludes data related to 66 free-standing company-owned Church’s restaurants that were not built under the “Tower” prototype.
  • The franchisor did not include data from franchisees in the following summary because financial statements provided by franchisees are not in a common format, and furthermore, they are not independently verified by the company.
  • Franchisees will incur other costs in connection with the operation of Church’s Restaurants including, without limitation, occupancy costs (such as rent or mortgage payments), utilities, royalties, advertising and promotional expenses, office expenses, legal and accounting expenses, insurance expenses, and various other administrative expenses.
  • Expenses in the operation of Restaurants will vary from franchisee to franchisee and from location to location, and are dependent upon seasonal, local, and other factors beyond the company’s control, such as the franchisee’s efficiency in the utilization of products, the costs of transportation, and the fluctuation in market prices for food and other products.
  • The operating cost information reflected in the following section is based on company financial statements.


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