Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Average Sales and Expenses for Affiliate-Owned Salsarita’s Restaurants

by Franchise Chatter on April 13, 2013

in Franchise Earnings, Mexican Restaurant Franchise

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Highlights of Salsarita’s Item 19 Financial Performance Representations (2012 FDD) – Part 1

  • Salsarita’s Franchising LLC (“SF”) offers franchises for restaurants (“Restaurants”) specializing in fast casual Mexican food, including burritos, soft tacos, quesadillas, fajitas, salads, nachos, and other items approved by SF.
  • The Restaurants utilize a proprietary, distinctive interior and exterior store design and layout.
  • The total investment necessary to begin operation of a Restaurant is $321,500 to $611,500. This includes $30,000 that must be paid to the franchisor or an affiliate.
  • In addition, you will pay the franchisor $30,000 per Restaurant if you sign an Area Development Agreement for multi-Restaurant development.

Average Sales and Expense Information for Affiliate-Owned Salsarita’s Restaurants (2011 Performance)

  • The data presented in this table represents average gross sales, average expenses, and average operating profit for the two Salsarita’s Restaurants that the franchisor’s affiliate, SR, has owned and operated since its acquisition of the system on June 16, 2011.
  • Both locations were open the entire year listed and are in operation as of the date of the 2012 disclosure document.
  • The franchisor’s predecessor provided the data for the period from January 1, 2011 to June 15, 2011 and the franchisor believes it is substantially correct.
  • The data for the period from June 16, 2011 to January 1, 2012 derives from the franchisor’s operating records.
  • All dollar values and percentages are rounded to the nearest whole value.

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