Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average, Median, High, and Low Gross Sales for Comparable Stores of The Athlete’s Foot (2013 FDD)

by Franchise Chatter on August 2, 2013

in Franchise Earnings, Retail Franchise



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Highlights of The Athlete’s Foot’s Item 19 Financial Performance Representations (2013 FDD)

  • The information below is for The Athlete’s Foot franchised stores. Of the 82 franchised stores that were open and operating under the Marks in the United States as of December 31, 2012, 72 franchised stores (i) were open and operating for all 24 months in calendar years 2011 and 2012 and (ii) reported their annual gross sales to the franchisor in all 24 months in that period (“Comparable Stores”).
  • The Athlete's Foot Store Photo by Mao LivreThese Comparable Stores, which represent 87% of the total franchised stores in the United States on December 31, 2012, are the Comparable Stores used in compiling the sales volume in this Item 19.
  • The gross sales volume figures used in this Item 19 are based on the reports of Gross Sales (as defined in Operating Agreements before July 6, 2001), and Net Sales (as defined in Operating Agreements after July 6, 2001) that franchisees made to the franchisor for purposes of determining royalty payments. Gross Sales and Net Sales are essentially the same sales base, but the term was changed in 2001.
  • Both of these terms generally include all revenue from the sale of all products and services that you sell in the Store or using the Marks (including the face amount of all gift cards, which are to be included at the time of redemption, and the full sales price of layaways, which are to be included at the time of first payment), whether evidenced by cash, credit, check, gift certificate, gift cards, script, or other property or services, and whether collected or not, less customer returns and sales taxes.
  • Gross Sales and Net Sales may be accounted for on a cash basis or accrual basis depending on the accounting method each franchisee uses.

Average, Median, High, and Low Gross Sales for Comparable Stores of The Athlete’s Foot (2012 Calendar Year)



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