Highlights of fro.zen.yo’s Item 19 Financial Performance Representations (2013 FDD) – Part 1
- The following represents an example of the actual sales, expenses, and net income achieved by seven affiliate-owned Stores (fro.zen.yo Chevy Chase, fro.zen.yo Columbia Heights, fro.zen.yo Crystal City, fro.zen.yo Eye Street, fro.zen.yo F Street, fro.zen.yo Silver Spring, and fro.zen.yo Zoo).
- The results of the fro.zen.yo Store at 1900 M Street, Washington, D.C. (owned by a franchisee) have not been included because as of December 31, 2012, the franchisor was in negotiations with the franchisee to reacquire the Store.
- The fro.zen.yo F Street Store is used to test a variety of new products, so the cost of goods and supplies are pro forma numbers derived from similar operations.
- The income and expense information for the F Street Store includes corporate level and enterprise-wide expenses, and therefore does not accurately reflect the performance of the individual Store. The income includes sales from the co-branded Zombie Coffee business at this location. The expenses include start-up food and supplies for new Stores and franchisees, extra staff for training new hires and franchise hires, commercial insurance, and rent expense for corporate offices (which are in addition to the Store’s rent expense).
- There may be other costs and expenses that you will incur related to the operation of a fro.zen.yo Store and which are not incurred by Stores that are owned and operated by the franchisor or its affiliates. These additional costs and expenses include continuing fees payable to the franchisor, such as Royalty Fees and Brand Development Fees.
- The figures used in this statement are sales, cost of goods sold, labor, and operating expenses only. Net income will vary from Store to Store depending upon factors such as rental or real estate costs, cost of goods sold, labor costs, and other costs relating to the operation of the Store.