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FDD Talk Daily: Average Revenue, Expenses, and Operating Profits of Affiliate-Owned Firehouse Subs Restaurants (2011)

Last updated on January 8, 2013 by Franchise Chatter Leave a Comment
in Franchise Earnings, Sub Sandwich Franchise

Highlights of Firehouse Subs’ Item 19 Financial Performance Representations (2012 FDD) – Part 2

Section II – Statement of Actual Operations of Certain Affiliate-Owned Firehouse Subs Restaurants

  • The franchisor compiled the operating revenue, expense, and net income figures from information supplied by stores operated by its affiliates. The following information relates solely to historical sales, expense, and income information regarding existing Firehouse Subs Restaurants operated by the company’s affiliates.
  • The following section shows the financial operations for the Firehouse Subs Restaurants operated by affiliates for the years ended December 27, 2009 (28 stores), December 26, 2010 (28 stores), and December 25, 2011 (28 stores) that were open the entire 12 month period, separated by gross sales volume levels.
  • The figures are the averages for the Restaurants in that sales level category.
  • The statements are based on the company’s accounting system, which conforms with generally accepted accounting principles (“GAAP”).
  • Compensation of general managers (other than distributions on account of ownership) is included in Wages and Benefits.
  • The company does not provide expense and net income figures for franchisee-owned restaurants because, although it receives financial information on expenses and income from franchisees, it does not consider that information to be as reliable and accurate as information from its affiliates.

A.  For the Period Ending December 31, 2011

Weekly Average Unit Volume (AUV) > $17,000



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