Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average Net Royalty Sales of Franchised and Affiliate-Managed Marco’s Pizza Restaurants (2013 FDD)

by Franchise Chatter on December 6, 2013

in Franchise Earnings, Pizza Franchises



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

  • The franchisor has prepared this financial performance representation to reflect the Net Royalty Sales of 240 Marco’s Pizza Stores operated by Franchisees (“Franchised Stores”), and 29 Affiliate-Managed Stores that were open during the entire 52-week period ending December 30, 2012.
  • Marco's Pizza Photo by s_kesslerThis information does not include the performance of 65 new Stores (both Franchised Stores and Affiliate-Managed Stores) that were not open for the entire 52-week period in 2012.
  • This financial performance representation also reflects certain operating results for 29 Affiliate-Managed Stores that were open and in operation for the entire fiscal year ending December 30, 2012, based on internally prepared accounting statements.
  • “Affiliate-Managed Stores” include all Stores owned by Cleveland Marco’s LLC, and all other Stores that Cleveland Marco’s LLC manages for a fee that are owned by the franchisor’s affiliated entities including Authentic Pizza LLC, Marco’s Indiana LLC, and 45 Pizza LLC (collectively, “Affiliate-Managed Stores”).
  • Cleveland Marco’s LLC has an equity ownership interest in Authentic Pizza LLC. Cleveland Marco’s LLC President has an equity interest in Marco’s Indiana LLC and 45 Pizza LLC.

Explanatory Notes for Part 1 – Operating Results

  • Chart 1 below provides the average Net Royalty Sales of the 269 System-wide Stores (240 Franchised and 29 Affiliate-Managed Stores) which were open for business for 52 weeks in the company’s 2012 fiscal year ended December 30, 2012.
  • Included in Chart 1 are the specific results for MPI, the franchisor’s largest independently-owned franchisee with 16 Franchised Stores.
  • Chart 2 below provides information regarding the Net Royalty Sales of the 29 Affiliate-Managed Stores that were open for business for 52 weeks in the company’s 2012 fiscal year.
  • The Net Royalty Sales figures after coupons and discounts for Franchised Stores are based upon unaudited royalty reports supplied by franchise owners.

Chart 1 – Net Royalty Sales of System-wide Stores – 2012



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