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FDD Talk 2013: Statement of Actual, Average, and Median Gross Sales for Pandora Stores (2013 FDD)

Last updated on July 12, 2014 by Franchise Chatter Leave a Comment
in Franchise Earnings, Jewellery Store Franchise

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

Explanatory Notes for Table 1 (Statement of Actual, Average, and Median Gross Sales for Pandora Stores) and Table 2 (Statement of Actual Gross Sales for Pandora Stores by Quartile)

  • Below is a statement of actual, average, and median Gross Sales compiled from 165 franchised Pandora Stores located in the United States and Puerto Rico (“Franchised Stores”), which were continuously open and operating from January 1, 2012 through December 31, 2012 (the “Accounting Period”).
  • Pandora Jewelry Store Photo by thinkretail


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    As used in Item 19, the term “Gross Sales” means all revenue and income from any source derived or received by the Franchised Stores from, through, by, or on account of the operation of the Store, whether received in cash, in services, in kind, from barter and/or exchange, on credit (whether or not payment is actually received) or otherwise, less the amount of any documented refunds given in good faith to customers by you and less any sales taxes.
  • By definition, the Median Gross Sales figure represents the figure by which there appears an equal number of Franchised Stores above and below, when the actual Gross Sales for all 165 locations are ranked in order from highest to lowest.
  • The term “Quartile” refers to the relative performance of the Franchised Stores included in this Item 19. Specifically, the “1st Quartile” refers to the top 25% performing Franchised Stores based on Gross Sales, the “2nd Quartile” refers to the next highest 25% performing Franchised Stores based on Gross Sales, and so on.
  • Pandora obtained this Gross Sales information from unaudited franchisee reports submitted to it consistent with its reporting requirements. Pandora has not audited or otherwise reviewed the Gross Sales information submitted to it.
  • The Franchised Stores included in Item 19 are primarily located within regional shopping centers or malls.
  • This Item 19 does not reflect any costs of sales, operating expenses, or other costs or expenses, which must be deducted from Gross Sales to obtain your net income or profit.
  • The revenues and expenses of a franchised Pandora Store will be directly affected by many factors, such as:
  • the region and market area in which the Pandora Store is located;
  • visibility of the Store;
  • brand recognition in the region and market area;
  • the competitive environment;
  • population density of the market;
  • proximity to other Pandora Stores;
  • whether the franchisee assumes the position of manager or hires a manager;
  • the payment of advertising and other fees;
  • product prices and general market conditions;
  • salaries and benefits to non-Store personnel;
  • Store personnel benefits (life and health insurance, and so on);
  • individual skills and business acumen of the franchisees;
  • employment conditions in the market;
  • and other factors.
  • Certain markets have substantially higher labor costs than others and you are urged to investigate local labor laws prior to making any assumptions about what your costs will be.

Table 1 – Statement of Actual, Average, and Median Gross Sales for Pandora Stores



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