Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average Gross Sales of The Learning Experience Centers (2013 FDD)

by Franchise Chatter on November 25, 2013

in Child-Related Franchises, Education Franchise, Franchise Earnings



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

  • This Item 19 presents the following financial information about selected Centers:
  • Average Gross Sales achieved by 83 Centers during the last reported twelve months, April 1, 2012 through March 31, 2013 (“Reporting Period”). These Centers include those that are franchised, managed by the franchisor, owned by the franchisor, and managed by the franchisor while being held for resale. (Part A)
  • Average Gross Sales and Selected Expenses for ten Company-Owned Mature Centers during the Reporting Period. (Part B)

Explanatory Notes for Part A – Gross Sales

  • Learning ExperienceAs of March 31, 2013, there were 112 open and operating Centers located in the United States, 83 of which were open and operating for more than 24 months.
  • The following analysis sets forth the gross sales results of all 83 Centers during the Reporting Period, broken down into two subsets:  those that were open and operating for more than 48 months (“Mature Centers”) which totals 48 units, and those that were open and operating for 25-48 months (“Intermediate Centers”), which totals 36 units.
  • The information appearing in the Gross Sales section is based on cash basis sales reported by each Center. Gross Sales includes cash and credit sales for goods and services provided, but does not include sales or use taxes.
  • Excluded are 29 Centers that have been open for fewer than 24 months as of March 31, 2013.
  • The information appearing in the Gross Sales section was compiled from reports submitted to the franchisor by franchisees and management of company-owned and managed Centers. No report is audited and the franchisor has not verified (i) the accuracy of such information or (ii) whether such information was prepared in accordance with generally accepted accounting principles. Nevertheless, the franchisor believes that no Center’s report has overstated its Gross Sales.
  • Some Centers have achieved these results. Your individual results may differ. There is no assurance that you will achieve these results.
  • Actual Gross Sales varies from Center to Center, and the franchisor cannot estimate the results of any specific Center. In particular, a Center’s Gross Sales will be directly affected by many additional factors, such as the Center’s geographic location, competition in the market, the presence of other Centers, the quality of management, the effectiveness of sales and marketing, and the prices charged for products and services sold at the Center.

Part A – Gross Sales



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