Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Average Gross Sales, Operating Expenses, and Operating Profits of Company-Owned Kolache Factory Stores (High Group)

by Franchise Chatter on January 15, 2013

in Bakery Franchise, Franchise Earnings



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Highlights of Kolache Factory’s Item 19 Financial Performance Representations (2012 FDD) – Part 1

  • The franchised business is a retail bakery cafe that sells an assortment of kolaches and complementary menu items under the Kolache Factory trade name.
  • The total investment necessary to begin operation of a new Kolache Factory franchise ranges from $340,330 to $490,000, exclusive of real estate acquisition or lease costs. This includes $35,000 that must be paid to the franchisor or an affiliate.
  • In addition, you will pay the franchisor $28,000 for your second and additional franchises.

Sales and Operating Profit (EBITDA) Information for Company-Owned Stores in Fiscal Years 2010 and 2011

  • Kolache Factory Photo by WarOnStringsAs of December 31, 2011, Kolache Factory, Inc. (“KFI”) was operating 18 Stores in the Houston, Texas market, 2 additional Stores in Texas outside of the Houston market, and 1 Store outside of the State of Texas (Indianapolis, Indiana).
  • The following table presents sales and profit information (commonly called “EBITDA”) for the KFI Stores in fiscal years 2010 and 2011.
  • The “High” designation presents the average EBITDA of the 4 Stores that achieved the highest sales and operating profit during those 2 years.
  • The “Middle” designation presents the average EBITDA of the 4 Stores that achieved the next highest sales and operating profit during those 2 years.
  • The “Low” designation presents the average EBITDA of 4 KFI Stores. The Low group contains a store that is open only Monday through Friday.
  • The information in this section is derived from KFI’s audited statements, but itself is unaudited.


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