Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Average, High, and Low Gross Sales of Sonny Bryan’s Smokehouse Restaurants

by Franchise Chatter on April 3, 2013

in BBQ Franchise, Franchise Earnings



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Highlights of Sonny Bryan’s Item 19 Financial Performance Representations (2012 FDD)

  • You will operate one or more “Sonny Bryan’s Smokehouse” restaurants offering barbecued smoked meats, ribs, sandwiches, salads, potatoes, and various side dishes, rolls, desserts, and beverages, including beer, on a dine-in, take-out, catering, and delivery basis in high volume malls, retail centers, and other high-traffic commercial locations throughout the United States.
  • The total investment necessary to begin operation of a Sonny Bryan’s Smokehouse franchise is $395,000 to $700,000. This includes the initial franchise fee of $25,000 that must be paid to the franchisor or its affiliate.
  • If you are an area developer, you will pay a development fee equal to $25,000 (less any applicable discount) for the first restaurant to be developed, plus $15,000 for each additional restaurant to be developed under the Area Development Agreement. The development fee is applied pro rata to the initial franchise fees due for each restaurant to be developed after the first. Your estimated initial investment will vary based on the number of restaurants to be developed.

Historic Gross Sales Information for the 9 Sonny Bryan’s Smokehouse Restaurants Owned by Smokehouse in Operation for the 52 Weeks Ending December 31, 2011

  • Nine Sonny Bryan’s Smokehouse Restaurants operated in the Dallas-Fort Worth area of Texas through December 31, 2011. (Smokehouse ceased operating one Restaurant upon the close of business on December 31, 2011.) All of these Restaurants are owned by Smokehouse and were in operation for the 52-week period ending December 31, 2011.
  • Sonny Bryan's Smokehouse Photo by emilygoodsteinSeven of the Restaurants are Traditional Restaurants and are located in an in-line shopping center or are free-standing; the remaining two Restaurants (one of which is closed) were Non-Traditional Sites located in a food court setting — one is a shopping mall and one in a multilevel office complex in a downtown area. Both of the food court restaurants have dedicated dining areas which are segregated from use by customers of other businesses.
  • The following information is unaudited, and the franchisor has relied on Smokehouse’s assurances that the information is accurate and reliable.
  • The Traditional Restaurants range in size from 942 to 5,299 square feet, with an average of 3,580 square feet per Restaurant. The opening dates for these Restaurants were between 1958 and 2004, with an average length of operations at 18 years.
  • The Non-Traditional Restaurants range in size from 2,269 to 2,697 square feet, with an average of 2,483 square feet per Restaurant. The opening dates for these Restaurants were between 1993 and 1998, with an average length of operations at 14 years. One of these two Non-Traditional Restaurants closed at the end of business on December 31, 2011.
  • These financial performance representation figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales figures to obtain your net income or profit.
  • As a franchisee, you will incur the additional cost of Royalties and Brand Development Fund contributions that Restaurants owned by the franchisor or its affiliates do not incur.


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