Highlights of Smashburger’s Item 19 Financial Performance Representations (2013 FDD)
Number of Smashburger Restaurants Included in These Financial Performance Representations (Average Sales and Profit and Loss Statement)
- On December 30, 2012 (the end of Smashburger’s 2012 fiscal year), there were 186 Smashburger Restaurants in operation in the United States.
- 36 (19%) of them have been in operation since December 28, 2009, of which 27 (75%) were owned and operated, or managed, by Smashburger’s affiliates for the full 2012 fiscal year (the “Affiliate-Owned Units”).
- Of the 27 Affiliate-Owned Units, 13 (48%) of them are located in Colorado (the “Colorado Units”).
- The data presented below is based entirely on the results of the 13 Colorado Units that Smashburger’s affiliates have owned and operated since December 28, 2009.
- Smashburger has not included the results of the single franchisee-owned Restaurant in Colorado because Smashburger does not have reliable data from that franchisee.
- The results shown below pertain only to Smashburger’s 2012 fiscal year which ran from January 2, 2012 through December 30, 2012.
Notes and Assumptions for Smashburger’s Average Sales and Profit and Loss Statement
- “Gross Sales” means the net revenue derived from the operation of the Restaurant as defined in the Franchise Agreement. It does not reflect either gross or net profits.
- “Cost of Goods Sold” includes revenue spent on food and beverage, paper, and alcohol. It excludes any vendor rebates contributed by Smashburger’s affiliate, Smashburger Purchasing, for the benefit of Restaurants owned and operated by Smashburger’s affiliates.
- “Labor” includes revenue spent on restaurant wages (salaried and hourly), bonuses, payroll tax, payroll fees, benefits (insurance, 401K, vacation, etc.), and other employee-related labor expenses. This does not include an owner-operator salary.
- “Operating Expenses” include revenue spent on operating and marketing items, including Marketing Fund contributions, equipment maintenance, facilities maintenance, operating and cleaning supplies, POS monthly fees, gift card fees, restaurant security, pest control, credit card fees, postage and freight, utilities, and other restaurant related operating expenses.
- The amount shown as Operating Expenses does not include overhead expenses not related to the operations of a specific restaurant. Royalties are also not included because affiliate-owned Restaurants do no pay royalties. The Colorado units whose data is reflected in this chart contributed 1% of Gross Sales to the Marketing Fund and spent 1% of Gross Sales on local marketing. You will be required to contribute 2% of Gross Sales to the Marketing Fund.
- “Profit After Controllables” means Gross Sales minus Cost of Goods Sold, Labor, and Operating Expenses.
- “Non-Operating Expenses” include the cost of property and liability insurance, license and permit fees, legal fees, and other similar restaurant-related expenses.
- “Occupancy” includes rent, common area maintenance, and personal property taxes.
- “Store Level EBITDA” means Gross Sales minus the sum of Cost of Goods Sold, Labor, Operating Expenses, Non-Operating Expenses, and Occupancy.