Highlights of Applebee’s Item 19 Financial Performance Representations (2013 FDD)
- The following sales figure was derived from the sales at the 1,828 franchised Restaurants that were in operation for all of calendar year 2012 (excluding the 23 company-owned Restaurants).
- 801 of the 1,828 Restaurants included in this survey (44%) attained at least the stated average sales.
- The financial results of your Restaurant may be directly affected by many factors, such as the Restaurant’s size, geographic location, weather, the effectiveness of your regional and local marketing efforts, the level of existing brand awareness and acceptance in the market, the presence of other competing restaurants, and the quality of management and service at your Restaurant.
- Your individual results may vary substantially from the results stated in this financial performance representation. Some Restaurants have achieved this sales level. There is no assurance that you will do as well.
Group Purchasing Program (Item 8)
- In 2001, Applebee’s began a new multi-year supply chain management initiative designed to leverage its size, improve sourcing of products, and optimize distribution. Effective February 16, 2009, Centralized Supply Chain Services, LLC (“CSCS”), a Delaware limited liability company and a purchasing and distribution cooperative, assumed the procurement duties for franchised and company-operated Applebee’s and IHOP Restaurants.
- Effective February 16, 2009, the franchisor designated CSCS as the sole authorized purchasing agent for all Restaurants. CSCS and Apple Co-op are not affiliated with the franchisor and are operated independent of it. However, the franchisor is a stockholder member of the Apple Co-op and entitled to elect 1 member of the Apple Co-op Board of Directors.
- CSCS administers purchasing programs on a cooperative basis for the benefit of its members, Apple Co-op as well as Pancake Supply Chain Co-op, Inc. (for IHOP restaurants).
- Apple Co-op was formed to allow operators of franchise or company-owned Restaurants to conduct a purchasing program through CSCS. Neither CSCS nor Apple Co-op is the franchisor’s affiliate.