Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Pinkberry’s Average Unit Volume Systemwide and Stratified (2013 FDD)

by Franchise Chatter on May 14, 2013

in Franchise Earnings, Frozen Yogurt Franchises

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Highlights of Pinkberry’s Item 19 Financial Performance Representations (2013 FDD)

Number of Pinkberry Stores Included in These Financial Performance Representations (Average Unit Sales Volume Systemwide and Average Unit Sales Volume Stratified)

  • Presented below is the gross sales information for the 52 week period ending February 24, 2013 for the 21 affiliate-owned and 93 licensed Pinkberry shops that were open and in operation during all of the preceding 52 week period (i.e. a total of 114 Shops).
  • The affiliate-owned Shops are substantially similar to those operated by franchisees.

Factors That Can Affect Gross Sales Results of Pinkberry Stores

Actual results will vary from shop to shop and from market to market. Included among the factors that can affect results are:

  • Pinkberry Frozen Yogurt Franchise Photo by mezzobluethe type of location and market in which a Shop operates;
  • the Shop’s size, visibility, traffic count, accessibility, and available parking;
  • ease of ingress and egress;
  • hours of operation;
  • local tastes;
  • climate, weather, and seasonality;
  • general economic conditions;
  • menu pricing decisions;
  • governmental regulations of production and sale of yogurt products;
  • existing and potential competition;
  • your backgrounds, skills, and qualifications, and adherence to Pinkberry’s standards;
  • the level of existing and continuing brand awareness and acceptance in your market;
  • your level of maintenance;
  • visibility of your signage;
  • population density, household income, and other demographics.

You should consider all of these (and other) factors and determine if the Shops whose results are reported are really comparable to the Shop that may be operated by you.

Non-Exclusive List of Expenses a Pinkberry Licensee May Incur

The financial performance representation figures below do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

The following is a non-exclusive list of the types of expenses one of Pinkberry’s licensees may incur:

  • labor costs, including taxes and benefits;
  • cost of goods sold;
  • advertising and marketing expenses;
  • rent, utilities, trash collection, common area maintenance, and other charges to occupy your premises;
  • training costs;
  • costs of maintenance, insurance, security, and supplies;
  • initial license and design fees, royalties, marketing fees, and local advertising expenses;
  • debt service;
  • professional fees;
  • and taxes.

You may incur other costs.

The information presented is based on the unaudited financial statements and records of Pinkberry Inc. and the unaudited and unverified records of its franchisees.

Table 1 – Average Unit Sales Volume (Systemwide)

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