Highlights of Firehouse Subs’ Item 19 Financial Performance Representations (2013 FDD) – Part 1
Explanatory Notes for Table 1 – Firehouse Subs Historical Average Unit Volume for Company-Owned and Franchised Locations (2010-2012)
- The following charts show historical sales information regarding both franchised and affiliated Firehouse Subs Restaurants that were open during the company’s fiscal years 2012, 2011, and 2010.
- This historical sales information was compiled using the reports provided to Firehouse Subs by these Restaurants. The reports are provided to Firehouse Subs on a cash accounting basis and are used to form the basis of royalty payments to the franchisor.
- The figures below show the average unit sales volume for the number of Restaurants in the various sales volume ranges. The chart shows the number of Restaurants in that sales category and the percentage that those Restaurants represent from the total of franchised and affiliated Restaurants within that sales volume range during that time period. In addition, the average unit sales volume for the Restaurants within that sales level are also shown.
- Average unit volume is weighted based on the number of operating weeks for each Restaurant.
- Sales information provided is unaudited.
- This sales summary does not reflect any expenses of Firehouse Subs Restaurants. Some of the expenses that are not reflected in this summary, but that you will incur and should take into consideration, are the following:
- franchise payments, including royalties;
- salaries, payroll taxes, and other employee benefits;
- rent and utilities;
- cost of equipment;
- cost of food and other product costs;
- financing costs (in addition to occupancy expense);
- accounting and legal expenses;
- debt repayment.
- These expenses will affect the net income and cash flow of a Firehouse Subs Restaurant. You should consider them and evaluate their impact on your operations.
Explanatory Notes for Table 2 – Rolling Average Unit Volume for Company-Owned and Franchised Firehouse Subs Locations (2010-2012)
- The following table shows the trailing 52-week annual average unit sales volume for Firehouse Subs Restaurants open during the company’s fiscal years 2012, 2011, and 2010.
Explanatory Notes for Table 3 – Statement of Actual Operations of Certain Affiliate-Owned Firehouse Subs Restaurants (2010-2012)
- The following charts contain information relating solely to historical sales, expense, and income information regarding existing Firehouse Subs restaurants operated by the company’s affiliates.
- The following charts shows the financial operations for the Firehouse Subs Restaurants operated by the company’s affiliates for the years ended December 26, 2010 (28 stores), December 25, 2011 (28 stores), and December 30, 2012 (28 stores) separated by gross sales volume levels. The figures are the averages for the Restaurants in that sales level category.
- The statements are based on Firehouse Subs’ accounting system, which conforms with generally accepted accounting principles (“GAAP”).
- Compensation of general managers (other than distributions on account of ownership) is included in Salaries & Wages and General & Administrative.
- Firehouse Subs does not provide expense and net income figures for franchisee-owned Restaurants because, although the company receives financial information on expenses and income from franchisees, it does not consider that information to be as reliable and accurate as information obtained from affiliates.
Table 1 – Firehouse Subs Historical Average Unit Volume for Company-Owned and Franchised Locations (2010-2012)
2012 Weekly Average Unit Volume