Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average, High, and Low Gross Sales for Franchised and Company-Owned The Egg & I Restaurants (2013 FDD)

by Franchise Chatter on November 4, 2013

in Breakfast Franchise, Casual-Dining Restaurant Franchise, Franchise Earnings



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Highlights of The Egg & I’s Item 19 Financial Performance Representations (2013 FDD) – Part 1

  • The franchise offered is for the operation of restaurants serving breakfast and lunch. A Restaurant is typically located in a neighborhood or commercial shopping center or other suitable location that the franchisor must first approve in its sole discretion before your development of the Restaurant.
  • The Egg & I Restaurant Photo by Daniel HaganThe Restaurants are generally between 3,400 and 4,000 square feet, in leased or owned restaurant space. The Restaurants have a warm and comfortable decor, with full table service.
  • Breakfast features gourmet coffee, pure squeezed juice, eggs, frittatas, omelettes, whole wheat pancakes, waffles, and many non-egg items served during all operating hours. Lunch features creative sandwiches, generous salads, fresh, homemade soups, and numerous beverages.
  • The Restaurants are customarily designed to seat 120 to 160 guests inside, with additional outdoor seating capability also recommended. Almost all Restaurants also offer meeting rooms for private gatherings.

Explanatory Notes for Chart 1:  Gross Sales – 51 Franchised Restaurants Open at Least One Year

  • Chart 1 shows the historical reported Gross Sales Range and average annual Gross Sales of all 51 franchised Restaurants that were in operation at least one year before the reporting period of July 1, 2012 through June 30, 2013.
  • 17 of the franchised Restaurants are owned by the franchisor’s affiliates. Subsidiaries of the franchisor’s parent, E & I Restaurants, Inc., manage the operations of 12 of the 17 affiliated franchised Restaurants.
  • The franchisor prepared the information contained in Chart 1 from reports provided by franchisees to it. These reported results are not audited.
  • Gross Sales includes all Restaurant revenues, but excludes sales taxes and certain discounts.
  • 26 of the 51 franchised Restaurants (51% of the franchised Restaurants) exceeded the average gross sales.

Explanatory Notes for Chart 2:  Gross Sales – 7 Company Restaurants Open at Least One Year

  • Chart 2 shows the historical reported Gross Sales Range and average annual Gross Sales of the 7 company-owned  Restaurants that were in operation at least one year before the reporting period of July 1, 2012 through June 30, 2013.
  • Gross Sales includes all Restaurant revenues, but excludes sales taxes and certain discounts.
  • All 7 of the company-owned Restaurants are operated by subsidiaries of its parent, E & I Restaurants, Inc. and located in Colorado.
  • 4 of the 7 company-owned Restaurants (57% of the company-owned Restaurants) exceeded the average gross sales.

Chart 1:  Gross Sales – 51 Franchised Restaurants Open at Least One Year



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