FDD Talk Daily: Average Gross Sales of Franchised Kilwins Chocolates and Ice Cream Stores

Highlights of Kilwins Chocolates’ Item 19 Financial Performance Representations (2012 FDD) – Part 1

• The franchisee will operate a Kilwins Chocolates and Ice Cream Store business that specializes in the sale of handmade chocolates, Kilwins brand original recipe ice cream, fudge, and other confections. With Kilwins’ approval, non-edible gift-type products may also be sold in Kilwins Stores but are not required.

• The total investment necessary to begin operation of a Kilwins Chocolates and Ice Cream Store franchised business ranges from $326,893 to $488,664. This includes $61,014 to $65,158 that must be paid to the franchisor or affiliates.

• If you choose to enter a build-to-suit construction agreement, the franchisor will construct and equip your store for you, and your total initial investment would still fall within the range of $326,893 to $488,664. This includes $61,014 to $65,158 that must be paid to the franchisor or affiliates.

• The averages presented below were prepared from the company’s internal operating records, which, in turn, were prepared from information obtained from its franchisees. To the best of the company’s knowledge, this information has been prepared according to generally accepted accounting principles. The information presented in this Item 19 has not been audited.

Gross Sales (2011)

• Gross Sales figures include revenues reported for calendar year 2011 from the sale of goods to retail customers, including the full range of required products.

• This section represents the results from 73 franchised Kilwins Stores, and no company-owned Stores.

• These Stores represent all Stores that were in operation during the entire period of January 1, 2011 through December 31, 2011 and that reported Gross Sales to the franchisor, including 7 Stores that are seasonally operated and were not open for the entire 12 month period.

• The franchisor excluded from the results the following Stores:

• (i) Five franchised Kilwins Stores were not open (even seasonally) for a full year, and the franchisor did not include the results from these Stores in this section;

• (ii) The franchisor excluded a special Store that is located in its production kitchen (but if it had included those results, the figure would have been lower);

• (iii) One franchised Store has a Satellite location and the operating results of this Satellite operation was excluded from the results below.

• The franchisor separately listed only those states in which it has 3 or more Stores in operation so that it did not provide information (even in summary form) that could be directly linked to any of its franchisees. However, data for all of the Stores (except those excluded Stores as explained above) were included in the “total” figures under the heading “All States”.