Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average Sales and Certain Costs for Marble Slab Creamery Stores (2013 FDD)

by Franchise Chatter on September 3, 2013

in Franchise Earnings, Frozen Dessert Franchise

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Highlights of Marble Slab Creamery’s Item 19 Financial Performance Representations (2013 FDD)

  • The data below presents historical revenue and limited expense information for calendar year 2012 for certain Marble Slab Creamery stores.
  • Marble Slab Creamery Photo by Global Franchise Group DevelopmentThe sample used to obtain this information includes only traditional mall stores that had been continuously in operation for the entire calendar year 2012, that were not co-branded with another concept or supplemented with satellite locations, and that provided the franchisor with the presented financial information for the full calendar year 2012.
  • The computation for average net sales included stores which met the following criteria:  1) open for all of 2012, 2) was a traditional format, and 3) was not co-branded.
  • There were 238 franchise stores open and operating as of December 31, 2012. Of these, 219 were traditional stores that operated for all of 2012, 2 were non-traditional locations, 9 were co-branded locations, 6 locations were not open for the entire 2012 calendar year, and 2 were temporarily closed for relocation.
  • Of the 219 stores represented in the sample, 99 stores (45.02%) attained or exceeded the Average Net Sales in the table below.
  • The computation for same unit sales includes locations that were open for the entire calendar year for 2011 and 2012.
  • Cost of Goods Sold includes costs such as the cost of food ingredients used to make finished products, shipping charges, etc. Cost calculations are for the period ending September 30, 2012.
  • Labor Costs may include costs such as salaries and wages for full-time and part-time employees, employer contributions for F.I.C.A taxes, federal unemployment taxes, state unemployment taxes, workers’ compensation, group health insurance (if any), 401(k) (if any), wages for contracted labor, expense of “help wanted” ads, employee training expenses, etc. Cost calculations are for the period ending September 30, 2012.
  • Rent may include costs such as flat rent, percentage rent, common area maintenance, depreciation of leasehold improvements, depreciation of fixtures and equipment, real estate commissions, real estate taxes, real estate insurance, utilities, etc. Cost calculations are for the period ending September 30, 2012.
  • A franchisee may be a multi-store operator but counted in the 1-2 store category because of all his or her stores, only 1 or 2 satisfied all required criteria (applicable to larger store categories also under the same rationale).
  • The data below was taken from financial reports submitted by franchisees. The franchisor has not audited or verified these reports, although it has no information or other reason to believe that they are unreliable. The franchisor did not use any reports that were incomplete or for which the information was presented in a manner that prohibited it from applying the information to one of the stated categories.
  • There are other expenses in operating a store that are not identified in the table below.
  • A new franchisee’s sales results are likely to be lower than the results shown below and expenses are likely to be higher than the results shown below.

Overall Sample

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