FDD Talk 2013: Average Gross Sales, Cost of Goods Sold, and Net Income of Franchised Complete Nutrition Stores (2013 FDD)

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

• There are five tables that follow in this Item 19. The tables and notes provide financial performance representations which are historical and that are based on information from (i) existing franchised Complete Nutrition Stores (opened prior to January 1, 2012) that have been open for business to the public for at least one year during a one-year measuring period from January 1, 2012 to December 31, 2012; and (ii) franchised Complete Nutrition Stores opened during the 2012 year.

• Complete Nutrition has not audited or verified the information reported to it by existing franchisees.

• The tables do not include any financial performance information for any of the 17 company-owned Complete Nutrition Stores.

• At the end of 2012, there were 169 Complete Nutrition Stores operating, consisting of 152 franchised Complete Nutrition Stores and 17 company-owned Complete Nutrition Stores.

• There were 35 franchised Complete Nutrition Stores opened throughout 2012. Twenty nine of these 35 franchised Complete Nutrition Stores reported sufficient financial performance information to be included in this financial performance representation.

• Average Annual Sales has been calculated by dividing the aggregate annual sales reported to the company by the franchised Complete Nutrition Stores in the sample by the number of franchised Complete Nutrition Stores in the sample.

• Average Cost of Goods Sold % has been calculated by dividing the aggregate cost of goods sold reported to the company by the franchised Complete Nutrition Stores in the sample by the aggregate annual sales reported by the franchised Complete Nutrition Stores in the sample.

• Average Net Profit % has been calculated by dividing the aggregate net profit and net losses reported to the company by the franchised Complete Nutrition Stores in the sample by the aggregate annual sales reported by the franchised Complete Nutrition Stores in the sample.

• Your financial results will be affected by your own operational ability, which may include your experience with managing a business, your capital and financing (including working capital), continual training of you and your staff, customer service orientation, your business plan, and the use of experts (for example, an accountant) to assist in your business plan.

• Other factors that could have an effect upon your financial results may include consumer preferences, competition (national and local), local advertising costs, inflation, local construction and its impact on traffic patterns, and reports on the health effects of using nutritional supplements such as those sold in Complete Nutrition Stores, as well as the impact of federal, state, and local government regulations.

• Your financial results may also be affected by fluctuations due to seasonality, weather, and periodic marketing and advertising programs. Inclement weather may cause temporary closings in some areas.

Table 1 – Average Annual 2012 Gross Sales and Cost of Goods Sold for 29 Franchised Complete Nutrition Stores Opened Throughout Calendar Year 2012

Tagged as: Complete Nutrition