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FDD Talk 2013: Average Sales, Operating Expenses, and Net Profit for Affiliate-Owned Salata Restaurants (2013 FDD)

by Franchise Chatter on October 22, 2013

in Franchise Earnings, Salad Franchise



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Highlights of Salata’s Item 19 Financial Performance Representations (2013 FDD) – Part 1

  • The following section includes the actual Net Sales, Cost of Goods Sold, Certain Expenses (not including royalty payments, System Ad Fund contributions, or local advertising and promotion), and Net Profit (before depreciation, debt service, and taxes) achieved by the company’s eight affiliate-owned Salata Restaurant units located in the greater Houston, Texas area.
  • Salata Restaurant Photo from blog.chron.comThese eight units are separated into two categories of Salata Restaurants.
  • The first category, represented by Table 1, relates to the four affiliate-owned Salata Restaurants located in a business district location, which are open Monday through Friday for lunch only, with the exception of one unit which is open six days a week for lunch and dinner.
  • The second category, represented by Table 2, relates to the four affiliate-owned Salata Restaurants located in traditional in-line shopping center locations, which are open six or seven days a week for lunch and dinner.
  • The franchisor has compiled the following information from the internal, unaudited financial statements of its affiliates for the calendar year ended December 31, 2012. These financial statements were not prepared in accordance with Generally Accepted Accounting Principles (GAAP), but are believed to be reliable.
  • The Net Sales figures shown are total revenues net of sales taxes and discounts.
  • With regard to the affiliate-owned Restaurants shown in Tables 1 and 2, the “Other Expenses” category does not include the payment of royalties, payments toward the System Ad Fund, or local advertising and promotion, as these units are not franchised units.
  • The cost of paper goods is included in the Cost of Goods Sold figure. Paper goods include to-go/delivery boxes, napkins, plastic utensils, disposable cups, and other miscellaneous disposable items.
  • The Cost of Goods Sold figures are presented as a percentage of Net Sales.
  • The Labor Cost figures include hourly payroll, salaries, payroll taxes, and uniform costs. The Labor Cost figures do not include workers’ compensation insurance or any other form of insurance. Further, the Labor Cost figures do not include the cost of a local store marketer employee or an assistant manager.
  • The Labor Cost figures are presented as a percentage of Net Sales.
  • The affiliate-owned units shown offer or will offer substantially the same products and services to the public as you will as a franchisee operating a franchised unit.

Explanatory Notes for Table 1

The following Salata Restaurants are included in Table 1:

  • Affiliate-owned Salata Restaurant located in the Houston tunnel system at 919 Milam, Suite T-1400, Houston, Texas, 77002, opened October 2005, occupies a leased space of approximately 1,050 square feet, and is open Monday through Friday 10:30 am to 2:30 pm. This unit is closed nights and weekends.
  • Affiliate-owned Salata Restaurant located in the Houston tunnel system in the Pennzoil Place at 711 Louisiana, Suite R-22, Houston, Texas, 77002, opened July 2008, occupies a leased space of approximately 754 square feet, and is open Monday through Friday 10:30 am to 2:30 pm. This unit is closed nights and weekends.
  • Affiliate-owned Salata Restaurant located in the Houston tunnel system in the Allen Center at 500 Dallas, Houston, Texas, 77002, opened September 2009, occupies a leased space of approximately 1,050 square feet, and is open Monday through Friday 10:30 am to 2:30 pm. This unit is closed nights and weekends.
  • Affiliate-owned Salata Restaurant located in the Houston, Texas Medical Center, opened March 2010, occupies a leased space of approximately 750 square feet, and is open Monday through Friday 11:00 am to 9:00 pm and Saturday 11:00 am to 7:00 pm. This unit is closed on Sunday.

Explanatory Notes for Table 2

The following Salata Restaurants are included in Table 2:

  • Affiliate-owned Salata Restaurant located at 14515 Katy Freeway, Houston, Texas, 77079, opened December 2008, occupies a leased space of approximately 2,590 square feet, and is open Monday through Saturday 11:00 am to 9:00 pm. This unit is closed on Sunday.
  • Affiliate-owned Salata Restaurant located at 130 Vintage Park Boulevard, Houston, Texas, 77070, opened February 2009, occupies a leased space of approximately 2,700 square feet, and is open Monday through Saturday 11:00 am to 9:00 pm. This unit is closed on Sunday.
  • Affiliate-owned Salata Restaurant located at 9595 Six Pines Drive, Suite 1010, The Woodlands, Texas, 77380, opened August 2011, and is open Monday through Saturday 11:00 am to 9:00 pm, and Sunday 11:00 am to 7:00 pm.
  • Affiliate-owned Salata Restaurant located at 19708 NW Freeway, Suite 1000, Houston, Texas, 77065, opened December 2011, and is open Monday through Saturday 11:00 am to 9:00 pm. This unit is closed on Sunday.

Table 1 – Operating Results for Affiliate-Owned Business District Salata Restaurants (4 Salata Restaurants) for the Period from January 1, 2012 through December 31, 2012



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