Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Average Gross Sales and Profit Margin of Wild Bird Centers of America Stores (2013 FDD)

by Franchise Chatter on January 7, 2014

in Bird-Related Franchise, Franchise Earnings, Retail Franchise

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Highlights of Wild Bird Centers of America’s Item 19 Financial Performance Representations (2013 FDD)

  • The franchise offered is for the operation of a retail Store which sells wild bird seed and feeders and other nature-oriented products.
  • The total investment necessary to begin operation of a Wild Bird Center franchise is $125,625 to $180,550. This includes $20,000 that must be paid to the franchisor.
  • Wild Bird Center Photo from Franchise GatorThe franchisor compiled the information about gross sales and gross profit margins reported below from the monthly sales reports it received in 2010, 2011, and 2012 from Wild Bird Center franchisees operating in the United States, who were in business during the full reporting year.
  • A new franchisee’s individual results may differ from the results stated in this financial performance representation.
  • This information was compiled from the franchisees’ monthly sales reports. This information is not audited and the franchisor is unable to verify its accuracy.
  • The Stores included in this survey had been in operation for varying periods of time, ranging from 2 months to 18 years, at the time they made the reports upon which this information is based. Stores which ceased doing business during the reporting year are excluded.
  • The franchisor’s E-Store program was not in operation until December 2009.
  • The gross profit margin survey excludes any Stores which did not provide complete cost of goods sold information for the entire reporting year.
  • The Stores included in this survey are in very diverse locations throughout the United States, including small and medium-sized cities and suburbs of large cities. Some Stores are in areas with significant tourist traffic and/or seasonal population changes. Stores operating in Canada are excluded.
  • The Stores included in this survey are generally located in neighborhood, community, or regional strip shopping centers. The franchisor makes no representations as to the relative level of sales which specific types of locations experience.
  • A few of the Stores included in this survey operated temporary sales kiosks, the sales from which were included in their gross sales.
  • “Gross Sales” is defined as the sales price of all merchandise and services sold at or from the Store or any satellite sales operations.
  • Many factors affect the gross sales of any particular Wild Bird Center Store, including general economic and market conditions, weather, demographics, competition, the franchisee’s effectiveness in management and sales, and the amount of time and energy the franchisee devotes to his Wild Bird Center business.
  • “Cost of Goods Sold” is defined as the actual out-of-pocket expense to acquire merchandise held for resale, excluding shipping, and is expressed as a percentage of gross sales.
  • The gross sales minus the cost of goods sold is the “Gross Profit.” To calculate the “Gross Profit Margin,” divide the gross profit by the gross sales.
  • Merchandise sold at Wild Bird Center Stores falls into a variety of product categories. The gross profit margin will vary among the product categories and from product to product within each category. Therefore, the gross profit margin for any Store is highly dependent upon the specific product mix sold by the franchisee.
  • A Store’s gross profit margin is also affected by the franchisee’s pricing policies. The franchisor makes no representations as to the gross profit margin applicable to any product category or to any specific location.

Summary of Gross Sales and Cost of Goods Sold – Calendar Year 2012

Total number of franchised stores in operation as of January 1, 2012, and remaining in operation throughout 2012:  40

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