Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average Sales, Cost of Goods Sold, and Labor Costs for Franchised Salata Restaurants (2013 FDD)

by Franchise Chatter on October 23, 2013

in Franchise Earnings, Salad Franchise

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

  • Salata Restaurants are fast casual restaurants that include eat-in and carry-out dining services at retail locations. Salata Restaurants are generally located in either traditional in-line shopping center sites, which are approximately 1,800 to 3,800 square feet in size, or in business district/non-traditional sites, which are approximately 750 to 1,800 square feet in size.
  • Salata Restaurants offer menus that specialize in freshly prepared salads, soups, wraps, and dressings.
  • The total investment necessary to begin operation of a Salata Restaurant franchise is from $386,500 to $576,000 for a traditional in-line shopping center site, and $259,000 to $399,000 for a business district/non-traditional site. This includes the $40,000 that must be paid to the franchisor, as well as approximately $3,000 to $4,000 paid to the company’s affiliate for certain proprietary foods, paper goods, and uniforms, among other items.
  • The franchisor may offer to enter into an area development agreement to establish and operate a certain number of Salata Restaurants at specific locations pursuant to individual franchise agreements. The area development fee will be equal to $20,000 multiplied by the number of Salata Restaurants to be developed under the area development agreement. The area development fee will then be credited, in increments of $20,000, toward the franchise fee owed for each Salata Restaurant developed. Your estimated initial investment will vary based on the number of Restaurants to be developed.

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