Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2013: Average Gross Sales of Single Location Full Plant Martinizing Dry Cleaning Stores (2013 FDD)

by Franchise Chatter on December 17, 2013

in Dry Cleaning Franchise, Franchise Earnings



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Highlights of Martinizing Dry Cleaning’s Item 19 Financial Performance Representations (2013 FDD) – Part 1

  • The franchisee will operate a Martinizing Dry Cleaning Store, a retail dry cleaning store providing dry cleaning and fabric maintenance services to the public.
  • The total investment necessary to begin operation of a Martinizing Dry Cleaning franchise is from $305,000 to $617,500. This includes $55,000 (consisting of the $40,000 initial franchise fee and $15,000 grand opening/initial marketing deposit) that must be paid to the franchisor for an Initial Franchise, but not the development fee for exclusive multi-store development.
  • The development fee is determined by multiplying the total additional Martinizing Stores to be established under the development schedule by $3,000.
  • In reviewing the average gross sales information reported below, the following should be considered:
  • Photo of Martinizing Dry Cleaning Sign by phelony_jones(a) the gross sales of the Reporting Stores have not been adjusted for factors affecting monthly gross sales of a dry cleaning business, such as seasonality, climate, and demographic characteristics of the area in which the business operates;
  • (b) the Reporting Stores have been in operation for varying periods of time ranging from 24 months to 22 years:
  • (c) only the last 12 consecutive months of gross sales reported prior to December 31, 2012 by each Reporting Store were used in compiling the gross sales information reported below;
  • (d) no adjustments have been made for inflation or other economic factors affecting operations over time;
  • (e) the individual franchisee’s effectiveness in management, efficiency in operation, and energy, time, and dedication to the business greatly impact the gross sales of a particular Martinizing Store and many other factors also impact the gross sales of a particular Martinizing Store, including general economic and market conditions, competition, and location demographics within the area of operation, and the like.

Explanatory Notes for Class I – Single Location Full Plant Stores

  • The average gross sales information (without taking into consideration any expenses) reported in Table 1 below was compiled by MFI (the franchisor) from monthly gross sales reports received for 29 Martinizing Stores where on-premise dry cleaning is provided (“Full Plant Stores”) operating as of December 31, 2012 (under franchise agreements providing for payment of royalties based on a percentage of gross sales) and which reported to MFI at least 24 consecutive months of sales activity prior to December 31, 2012 (“Reporting Stores”).

Class I – Single Location Full Plant Stores

  • The following reflects the average gross sales of the Reporting Stores reported to MFI for 12 consecutive months prior to December 31, 2012, divided into four groups (“Groups”) by ascending order of sales volume, the number of Reporting Stores falling within each Group, and the percentage of the Reporting Stores attaining or surpassing the average gross sales reported in each Group.


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