Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Operating Results for All Franchised Interstate All Battery Centers Open 12+ Months (2013 FDD)

by Franchise Chatter on November 19, 2013

in Battery Franchise, Franchise Earnings



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Highlights of Interstate All Battery Center’s Item 19 Financial Performance Representations (2013 FDD) – Part 2

  • Nearly all of the franchised Centers included in the figures are operated by long-time Interstate Battery distributors or their affiliated companies. These Centers may have benefited from the respective distributor’s existing customer base and experience in the battery business.
  • Interstate Batteries Photo by man4054Many of the Centers have been in operation for more than three years, and several have been operating for more than five years. These stores may be more successful because of their maturity and experience than would a start-up retail store.
  • 5 of the 144 Franchised Centers included in the figures below operate a satellite facility at a separate location; the results of those 5 Centers include the results of their respective satellite facilities.
  • The stores for which information is provided paid royalties on a sliding scale. You must pay royalty fees equal to 5% of your Gross Sales (or if you are an Interstate Batteries independent distributor approved to operate your Center from your warehouse location, the minimum annual royalty, if greater).
  • The actual results of your Center will depend on a variety of internal and external factors (some of which neither the franchisor nor you can estimate), including your management ability and business skill, competition, taxes, the availability of financing, general economic climate, demographics, and changing consumer preferences. There is no guarantee that your center will be profitable.
  • The gross sales for the full-size franchised Centers ranged from $113,835 to $2,855,587.
  • The gross sales for all franchised Centers ranged from $44,634 to $2,855,587; this includes franchisees who are not participating in the full or similar model.
  • Each of the 13 company-operated full Centers have been open for business for over 5 years. Two of the company-operated full Centers are located in Omaha, Nebraska and are 6.1 miles apart. These are the only company-operated Centers open 12+ months that are located within the same marketing area.
  • One such Center, Omaha East, generated $979,517 in gross sales for the 12 months ended April 30, 2013, of which 49.3% came from commercial sales and 50.7% came from retail sales. 11 out of 13 (or 85%) attained or exceeded such gross sales. Omaha East realized 53.0% in gross profit. 3 out of 13 (or 23%) attained or exceeded such gross profit. Gross profit means gross sales minus Cost of Goods Sold.
  • The second Center, Omaha West, generated $841,284 in gross sales for the 12 months ended April 30, 2013, of which 42.6% came from commercial sales and 57.4% came from retail sales. 13 out of 13 (or 100%) attained or exceeded such gross sales. Omaha West realized 55.9% in gross profit. 1 out of 13 (or 7.7%) attained or exceeded such gross profit.
  • These two company-operated Centers competed in a market with at least four other battery concepts within a 20 mile radius of their stores.

Table 4 – Operating Results for Franchised Full Centers Open 12+ Months (45 Centers)



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