FDD Talk Daily: Average Sales, Operating Expenses, and Operating Profits of Great Harvest Bread Company Businesses

Highlights of Great Harvest Bread Company’s Item 19 Financial Performance Representations (2012 FDD) – Part 1

• The franchise is for a whole-wheat neighborhood bread business.

• The total investment necessary to begin operation of a Great Harvest Bread Company franchise is projected to range from $112,240 to $599,976. This includes $38,000 for a first-time location and $8,000 for an additional location that must be paid to the franchisor or affiliate. You must pay the franchisor an additional $3,000 for area development rights.

• The average sales numbers appearing in Sections 1, 2, and 4 are “gross numbers” and do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• All bread companies are owner-managed and receive substantially the same services from the franchisor. The franchisor obtained all numerical information from reports submitted by the franchised bread companies and has not independently audited them.

Section 1 – Average Annual Gross Sales Reported by Great Harvest Bread Companies (Average System Wide Sales)

• Section 1 includes any associated non-baking locations’ sales for the periods represented. A non-baking location is a retail location using the Great Harvest name, other than a franchisee’s bread company, that is leased, owned, or otherwise controlled by a franchisee and open 190 days or more during the year and to which a franchisee delivers fully-baked bread and other baked products from its bread company.

• The bread companies whose annual Gross Sales are represented in Section 1 (a) were open and operating for the full 12-month period ended November 30 in the year indicated and (b) have reported their sales to the franchisor for each of the 3 periods listed.