Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Average Gross Sales of 2-Year Yogurt Mountain Stores (2013 FDD)

by Franchise Chatter on January 3, 2014

in Franchise Earnings, Frozen Yogurt Franchises



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

  • On December 29, 2012 (the end of the company’s 2012 Fiscal Year), there were 43 Yogurt Mountain Stores in operation. Fifteen (15) of them are non-traditional stores, each located within and operated by one of the franchisor’s owners as part of a Books-A-Million bookstore and, therefore, are being disregarded for the purposes of this Item.
  • As of the date of the Disclosure Document, there are 17 Yogurt Mountain Stores that have operated for at least two years (the “2-Year Stores”). Fifteen (15) of the 17 2-Year Stores are owned and operated by the franchisor’s affiliate (the “Company-Owned 2-Year Stores”), and two (2) are owned and operated by unaffiliated franchisees.

Explanatory Notes for Part 1 – Average Gross Sales and Range of Gross Sales for 2-Year Stores

  • Yogurt Mountain Photo by kaypen88The following chart presents data based entirely on the results of the 17 2-Year Stores. The franchisor has selected those Stores that have had at least a 2-year operating history to eliminate anomalies based on honeymoon, ramp-up, and ramp-down periods.
  • The results shown pertain only to the franchisor’s 2012 Fiscal Year which ran from January 1, 2012 through December 29, 2012.
  • The data for the Company-Owned 2-Year Stores is the franchisor’s internally prepared data, and the data for the two Stores owned by unaffiliated franchisees is based on information the franchisor polled from the franchisees’ point-of-sales systems or that was reported to it by the franchisees. The franchisor has not independently verified those numbers.
  • Average Gross Sales for 2012 Fiscal Year was calculated by adding the total Gross Sales for the company’s 2012 Fiscal Year of all of the 2-Year Stores and dividing that number by 17 (the total number of 2-Year Stores). Nine (9) of the 2-Year Stores (52.9%) met or exceeded the Average Gross Sales for the 2012 Fiscal Year; eight (8) of the 2-Year Stores (47.1%) had Gross Sales for the 2012 Fiscal Year that were lower than the average.
  • “Gross Sales” means the net revenue derived from the operation of the Store as defined in the Franchise Agreement. It does not reflect either gross or net profits.
  • Some Yogurt Mountain Stores have sold this much. Your individual results may differ. There is no assurance that you will sell as much.

Explanatory Notes for Part 2 – Average Percentage of Gross Sales Derived for Each Accounting Period for the 15 Company-Owned 2-Year Stores

  • A business that sells frozen yogurt as its primary product is likely to have a seasonal cycle. The following chart shows for the 15 Company-Owned 2-Year Stores, the average percentage of Gross Sales derived during each accounting period of the company’s 2012 Fiscal Year.
  • Yogurt Mountain’s 2012 Fiscal Year began January 1, 2012, and consists of 12 periods comprised of either 4 or 5 weeks. For the 2012 Fiscal Year, periods 1, 2, 4, 5, 7, 8, 10, and 11 were comprised of 4 weeks each, and periods 3, 6, 9, and 12 consisted of 5 weeks.
  • The franchisor calculated the average for each accounting period by adding the Gross Sales for all 15 Company-Owned 2-Year Stores for the accounting period and dividing that number by the total Gross Sales of all 15 Company-Owned 2-Year Stores for the entire 2012 Fiscal Year.

Part 1 – Average Gross Sales and Range of Gross Sales for 2-Year Stores



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