Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Pro Forma Revenue and Expenses for Corporate-Owned Hooters Restaurants

by Franchise Chatter on April 11, 2013

in Franchise Earnings, Restaurant Franchise



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Highlights of Hooters’ Item 19 Financial Performance Representations (2012 FDD) – Part 2

  • Following is a pro forma operating revenue and expense table prepared by Hooters based on the average revenue and expense experience of its 160 corporate restaurants for the entire 48 weeks ending December 25, 2011, the company’s fiscal year, as included in its audited financial statement included in the Franchise Disclosure Document. The company’s independent auditors have not audited or reviewed the following table.
  • The company does not provide an operating revenue and expense table for its franchised units because it does not collect the information from franchisees that are needed to report this information correctly.
  • Hooters’ corporate restaurants differ primarily from its franchised units in that the average Gross Sales and expenses of franchised units will be affected by continuing royalty fees, advertising fees, and any other fees that the restaurants it operates do not have to pay.

Operating Revenues and Expenses for 160 Company Restaurants During the 48 Weeks Ended December 25, 2011



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