Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average Ticket and Average Cost of Goods Sold for Zoup! Restaurants (2013 FDD)

by Franchise Chatter on October 6, 2013

in Franchise Earnings, Soup Franchise



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Highlights of Zoup!’s Item 19 Financial Performance Representations (2013 FDD) – Part 2

  • Part 4 of this Item presents historical cost information, including cost of goods sold (food and packaging costs), as a percentage of sales. This cost information is provided for 36 of the franchised Restaurants opened for the full 12 months during 2012.
  • Zoup Photo by tory.me 2These 36 Restaurants represent 86% of the franchised Restaurants operating at the end of 2012, and 78% of all Restaurants operating at the end of 2012. The franchisor did not receive nightly information from 3 of its franchisees, preventing it from including their information in this Part 4.
  • Part 5 of this Item presents historical average ticket information from all 39 franchised Restaurants opened for the full 12 months during 2012. These 39 Restaurants represent 93% of the 42 franchised Restaurants operating at the end of 2012 and 86% of the 46 total Restaurants operating at the end of 2012.
  • Gross Sales less the Cost of Goods Sold and Labor Expenses does not reflect the actual potential income of a Restaurant and should not be relied on in calculating profitability. There are a number of fixed and variable costs associated with a Restaurant, not all of which are reflected in the information below, and that vary among individual Restaurants.
  • These expenses, which are likely to be significant, include, but are not limited to, the following:
  • the certain costs listed in Parts 3 and 4
  • costs described in Items 6 and 7 of the disclosure document, including the 6% royalty fee
  • interest or finance charges if you finance some or all of the cost of the franchise
  • depreciation on property and equipment
  • occupancy costs (including rent, maintenance, insurance, and utilities)
  • store supplies
  • credit card fees
  • worker’s compensation and general liability insurance
  • taxes
  • national brand marketing fund
  • customer service and training fund
  • tech fund
  • accounting and legal fees and general administrative expenses
  • any pre-opening or amortization of organization costs
  • costs associated with regulatory compliance
  • management costs
  • fringe benefits and
  • certain repairs and maintenance
  • You should be aware that you may incur expenses that may not be incurred by affiliate-owned Restaurants.

Part 4 – Average Cost of Goods Sold as a % of Gross Sales (January 1, 2012 to December 31, 2012)



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