Highlights of Milio’s (Sandwiches) Item 19 Financial Performance Representations (2012 FDD)
- The franchisor grants you the right to operate a Milio’s Restaurant. Your restaurant will offer for sale a wide variety of sandwiches, wraps, and other products and beverages.
- The total investment necessary to begin operation of a single Milio’s Restaurant ranges from $121,460 to $313,100 for convenience store locations and from $154,900 to $386,300 for in-line or freestanding locations. This includes $30,300 to $52,800 that must be paid to the franchisor or its affiliates.
Unaudited Statement of Sales, Cost of Sales, and Gross Margin
- The following statements of certain gross sales, cost of sales, and gross margin averages are based upon store reports for restaurants operated by the franchisor’s affiliate Big Mike’s Super Subs, Inc. for the 52-week period from December 26, 2010 through December 25, 2011.
- The franchisor’s affiliate, Big Mike’s, operates these restaurants under the Milio’s name. The restaurants are substantially similar to the type of restaurant you will operate under the Milio’s name. Big Mike’s converted all of its corporate-owned restaurants to the Milio’s name from Big Mike’s Super Subs as of May 20, 2004.
- The information included in this statement is for 32 restaurants that were open and operating for the full 52-week period noted above.
- The restaurants include 24 restaurants in strip mall locations and 8 restaurants located in convenience stores.
- Gross Sales: Gross sales less sales taxes and discounts.
- Cost of Sales: The cost of the food products that are sold to consumers and the associated packaging. The food products include ingredients, beverages, and condiments. The associated packaging includes bags, product wraps and containers, other paper products, cups and lids, straws, and eating utensils.
- Gross Margin: Gross profit remaining after deduction of cost of sales and before any variable or fixed expenses.
- The restaurant performance results included in this statement are company-owned and do not include any franchised restaurants. As of December 26, 2011, nine franchised restaurants had been open for more than three years and all franchised restaurants are in the early stages of operations.