Highlights of Rapid Refill’s Item 19 Financial Performance Representations (2013 FDD)
Explanatory Notes for Gross Sales
- Below are gross sales financial performance measures for the Top 50% and Bottom 50% of Rapid Refill retail Store locations. These measures show average and median Gross Sales performance, the range of Gross Sales performance, the number of Stores above the average Gross Sales performance measure, and the number of Stores below the average Gross Sales performance measure.
- These measures contain data that is provided from the POS System and reflect the financial performance of the 52 franchised Rapid Refill Stores operating continuously during calendar year 2012 (the “Reporting Stores”), out of the 79 total franchised locations, operating as of December 31, 2012, or 66% of all franchised Rapid Refill locations.
- The Top 50% of Reporting Stores include the 26 Reporting Stores with the highest Gross Sales during the calendar year 2012 (“Top 50%”). The Bottom 50% of Reporting Stores include the 26 Reporting Stores with the lowest Gross Sales during the calendar year 2012 (“Bottom 50%”).
- These measures include only the financial performance data for the 52 Reporting Stores. These measures exclude all Commercial Sales Program Business Offices, store within a store configuration, store of another brand name, and retail Stores that were not open and operating continuously during the calendar year 2012.
- Importantly, although the franchisor has reviewed the Gross Sales data provided to it by its franchisees for purposes of this Item 19, the data is not audited.
- These figures represent Gross Sales before deducting any expenses.
Explanatory Notes for Cost of Goods Sold and Gross Profit
- Below are Cost of Goods Sold and Gross Profit financial performance measures for the top 90% of products, as measured by percentage of sales, sold through the Rapid Refill franchise system during the period October 1, 2012 through March 25, 2013 (“Reported Products”).
- The Reported Products include 639 different product models, including both remanufactured, compatible, and other aftermarket Cartridges, as well as new, OEM (Original Equipment Manufacturer) Cartridges.
- These measures show the weighted-average Unit Cost, weighted-average Cost of Goods Sold, weighted-average Unit Gross Profit, and weighted-average Gross Profit Percentage for the Reported Products.
- The weighted-average Unit Sales Price, Unit Cost, Cost of Goods Sold Percentage, Unit Gross Profit, and Gross Profit Percentage measures are based on i) the current product purchase prices from approved vendors as of the date of the Disclosure Document, and ii) the weighted-average sales price from all Rapid Refill locations during the Reported Products period October 1, 2012 through March 25, 2013.
- Unit Gross Profit and Gross Profit Percentage do NOT include other variable and fixed expenses, such as Royalties, Advertising Commitment, transaction costs, labor, rent, utilities, local marketing expenditures, among other things.