Highlights of Forever Yogurt’s Item 19 Financial Performance Representations (2013 FDD) – Part 1
- As of December 31, 2012 (the end of the company’s fiscal year), there were only 3 Forever Yogurt stores that have operated for at least one full year. Each is owned and operated by the franchisor’s affiliates and each is located in the Chicago, Illinois area where the company is headquartered.
- One store (located at 1924 North Avenue, Chicago, IL) (the “North Avenue Store”) opened June 25, 2010; one store (located at 931 Belmont Avenue, Chicago, IL) (the “Belmont Avenue Store”) opened April 15, 2011; and one store (located at 42 E. Chicago Avenue, Chicago, IL) (the “Chicago Avenue Store”) opened May 24, 2011.
- With the exception of the North Avenue Store, each has operated continuously since it opened; the North Avenue Store was required to close for a 4-week period in 2011 as a result of an accident in which a car ran from the parking lot into the Store.
- The following three sections contain the full profit and loss statements showing the year-end results for each of the three stores.
- The statements made regarding the actual financial performance of Forever Yogurt’s affiliate-owned Stores included in this Item 19 DO NOT include the following expense items. You will need to include these items in your calculations when considering the purchase of a franchise for a Store:
- (1) Royalty fees that you are required to pay under the Franchise Agreement. These fees, which are not reflected in the following disclosures (because affiliates are not required to pay a royalty), are equal to six percent (6%) of the Gross Sales of your Store.
- (2) Interest or other financing costs.
- (3) Organization and other start-up costs in excess of those incurred by affiliates.
- (4) Any accounting, legal, or management fees.
- (5) Income taxes and other taxes.
- (6) Occupancy costs in excess of those incurred by affiliates. Your occupancy costs may vary substantially from those Forever Yogurt’s affiliates incur depending on the location of your Store and the terms of the applicable lease, if any.
- These excluded items will affect the net income, operating profit, and/or cash flow of your Store and must be carefully considered and evaluated.
North Avenue Store