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Earnings Claims of Top Franchises Revealed

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FDD Talk Daily (Children’s Franchises): Profit and Loss Statement for Franchised Primrose Schools (Mature Larger Facilities)

by Franchise Chatter on March 22, 2013

in Child-Related Franchises, Childcare Franchise, Education Franchise, Franchise Earnings

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This special FDD Talk series will highlight the financial performance representations of over 20 Children’s franchises, with a cross-analysis of the featured franchises to be published at the end of the series.

Highlights of Primrose School’s Item 19 Financial Performance Representations (2012 FDD) – Part 2

Profit and Loss Statement for Franchised Larger Facilities Continuously Open During the Period January 1, 2011 Through December 31, 2011

  • Primrose School PhotoThe table below sets forth the historical average profit and loss statement for Larger Facilities that were open and operating during the Summary Period.
  • Larger Facilities have a capacity of between 145 and 296 children.
  • For purposes of this Item 19, the Summary Period means the 24-month period from January 1, 2010 to December 31, 2011.
  • There were 193 franchised Larger Facilities that were in operation continuously during the Summary Period. Of the 193 Larger Facilities open during the Summary Period, the franchisor received complete and timely financial information for the full Summary Period from 158 Larger Facilities (the “Mature Sample”). The table below is based solely on data for the Mature Sample.
  • The franchised Facilities represented in the Mature Sample are located in free-standing buildings in Alabama, Arizona, Colorado, Florida, Georgia, Indiana, Kansas, Minnesota, Nebraska, North Carolina, Ohio, Oklahoma, Tennessee, Texas, and Virginia.
  • Average Gross Revenues is the average Facility sales during January 1, 2011 to December 31, 2011 for the Facilities included.
  • The expenses in the following profit and loss statement exclude any franchise owner related expenses (e.g. salary, life insurance, health insurance, automobile expenses, miscellaneous). There may be other costs and expenses related to operating a Facility that are also not identified in the table below.

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