Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

FDD Talk 2013: Bases and Assumptions for Chili’s Earnings Data (2013 FDD)

by Franchise Chatter on October 20, 2013

in Casual-Dining Restaurant Franchise, Franchise Earnings

Franchise Chatter Membership Information

Don't Invest in a Franchise Until You Check Out This List Find the Ideal Business for You

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

  • The company-operated Chili’s Restaurants use a uniform accounting system and the data pertaining to these Restaurants was prepared by the company’s in-house accountants on a basis consistent with generally accepted accounting principles during the period covered.
  • Chili's Burger Photo by burgerclubSales include the total of all in-restaurant, to-go, and catering food and beverage sales, including beer, wine, and liquor sales. Sales also include the dollar amount for discounts, coupons, and other promotional discounts. Sales as shown in this statement do not equate to “Gross Sales” as defined in the franchise agreement.
  • Gross Profit is calculated by subtracting Cost of Sales from Sales. Cost of Sales includes the total costs of all in-restaurant, to-go, and catering food and beverage sales, including beer, wine, and liquor sales.
  • The franchisor purchases many items used in the operation of the Chili’s Restaurants under arrangements/contracts negotiated with suppliers and distributors which may have permitted it to purchase and have such items delivered at a volume discount. To the extent these arrangements are changed or are not available to you, these costs could vary significantly.
  • Total Operating Expenses include hourly labor costs, restaurant expenses, facility costs, and miscellaneous items.
  • Hourly Labor Costs include employee wages and benefits, employee training expenses, payroll taxes, and vacation pay. Other benefits which you elect to provide your employees, like the amount of vacation time and vacation pay, are factors that will affect labor cost.
  • Restaurant Expenses include such items as restaurant supplies, catering supplies, to-go containers, tableware, linen, uniforms, credit card fees, and bank charges. Third-party credit card processing fees and bank charges are separately negotiated with credit card processors and banks. These fees and charges will vary depending on both the actual and projected volume of transactions and the total dollar value of individual transactions.
  • Facility Costs include such items as telephone expenses, dues and licenses, equipment rentals, exterminators, variable repairs and maintenance expenses, maintenance contracts, utilities, security, sales tax, and corporate insurance allocations for group health, general liability, property, and workers’ compensation.
  • Miscellaneous Operating Expenses include complimentary meals, coupon expenses, gift certificate income, office costs, merchandise sales and expenses, and miscellaneous income and expenses.
  • Non-Controllable Costs are those expenses that on-site management does not have the ability to control directly. Non-controllable expenses include manager’s salaries, rent, property taxes, depreciation, and miscellaneous items.
  • Manager Salaries include salaries, payroll taxes, bonuses, and benefits for the store management team.
  • Rent consists of minimum rent, percentage rents, common area maintenance charges, and any sales or other taxes imposed thereon and paid by the company. For fee simple properties, an allocated interest charge in lieu of rent has been included. That charge was not added back in calculating EBITDA for comparability purposes between owned and leased restaurants.
  • Property Taxes consist of real estate taxes and assessments levied against the property upon which the Restaurant is located.

To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment - See more at: https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf

Franchise Matching Quiz

{ 0 comments… add one now }

Leave a Comment

Previous post:

Next post: