Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Average Gross Sales for Capriotti’s Sandwich Shop Restaurants in Operation for 12 Months or More

by Franchise Chatter on May 4, 2013

in Franchise Earnings, Sub Sandwich Franchise

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

  • You will operate a retail restaurant which serves various submarine deli sandwiches and related items in a casual sit-down and/or takeout format under the name “Capriotti’s Sandwich Shop,” “Capriotti’s,” and other servicemarks.
  • The total investment necessary to begin operation of a Capriotti’s Sandwich Shop restaurant ranges from $197,000 to $427,500 for a single franchise and up to $607,500 for a Developer under an Area Development Agreement.
  • This includes the non-refundable initial franchise fee and development services fee of $46,000 for a single franchisee and $36,000 for a Developer who agrees to operate 3 or more restaurants.

Analaysis of Average Sales (Unaudited) for Certain Capriotti’s Shop Restaurants

  • Capriotti's Sandwich Shop Photo by TheHungryHungryHungryHippo“Average Gross Sales” reflects the total average annual sales for the restaurants included in the sample and does not include sales tax.
  • The franchisor took the Gross Sales numbers directly from the Aloha POS system for those restaurants using the system. For those restaurants not currently on the POS system, the franchisor used the sales numbers they reported.
  • The sales of your Franchised Restaurant will be directly affected by factors which include the Franchised Restaurant’s geographic location, general economic conditions, demographics, weather conditions, seasonal factors, competition in the market, presence of other restaurants, the quality of both management and service at the Franchised Restaurant, and certain benefits and economies of scale which some franchisees may derive as a result of operating multiple restaurants.
  • While the franchisor has not audited these results which have been reported to it by its franchisees, it has no reasonable basis to question their reliability.
  • Restaurants that were relocated and closed more than 3 months in the process were not included in any of the charts below.

A. 2011 Average Gross Sales for Restaurants in Operation for 12 Months or More

  • The following table provides the average annual Gross Sales for the period ending December 31, 2011 for all restaurants in operation more than 12 months that reported information for the entire period to the franchisor.
  • All of the franchisee and affiliate-owned restaurants qualifying for the sample were included in 2011.
  • The restaurants are located in the following states:  California, Iowa, Delaware, Florida, Maryland, Nevada, New Jersey, Pennsylvania, Utah, Wisconsin, and Arizona.

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