• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Menu
  • Home
  • About
    • About Franchise Chatter
    • Contact
    • Privacy Policy
    • Terms of Service
    • Affiliate Disclosures
  • Subscribers Only
    • Login
    • New to Franchise Chatter? Start Here
    • America’s Most Lucrative Franchises
    • Franchises Ranked by Average Revenues
    • Franchises Ranked by Average Profits
    • Franchise Winners, Survivors and Losers Last Year
    • FDD Talk
    • Search by Name
  • Top Franchises
  • Franchise Earnings
  • Costs
  • Fees
  • Quiz
  • Search

FDD Talk: Average Variable and Fixed Costs of Saladworks Restaurants (2013 FDD)

Published on January 29, 2014 by Franchise Chatter Leave a Comment
in Franchise Earnings, Salad Franchise

Highlights of Saladworks’ Item 19 Financial Performance Representations (2013 FDD) – Part 2

Explanatory Notes for Part 2 – Average Costs of 18 Saladworks “A” Operated Restaurants in Strip Center Locations

  • During 2012 and subsequent to the year ended December 31, 2012, Saladworks received sales and cost information from its franchised restaurants in various formats. The “A” operated Saladworks restaurants, as a group, provided the franchisor with more complete and reliable cost information than that provided by “B” and “C” operated Saladworks restaurants.
  • Saladworks Photo by Bob B. Brown


    Learn Which Franchises Can Make You Rich
    The following tables represent the data received from 18 “A” operated Saladworks restaurants in strip center locations during the calendar year ended December 31, 2012.
  • The following table shows, for the period from January 1, 2012 through December 31, 2012, the average costs of the 18 restaurants. All of the average cost of goods sold and average variable costs are expressed as percentages of the 18 restaurants’ average Net Sales, and all of the average fixed costs are expressed as dollar amounts, with the total average fixed costs expressed as a percentage of the Net Sales.
  • Unless otherwise indicated, the average costs are actual per franchisee financial submissions, and are believed by the franchisor to be reasonably reflective of the costs of Saladworks restaurants generally.
  • All variable costs listed below, to include royalties, Brand Development Fund contributions, credit card charges, payroll taxes, and local store marketing requirements are calculated based on Net Sales.
  • Food costs cover all ingredients used to make salads, sandwiches, wraps, panini, soups, breads, and beverages.
  • Paper costs cover all bowls, lids, cups, utensils, straws, and napkins.
  • Payroll-hourly costs cover hourly employees, but not management employees. It is the Gross Hourly wage and does not include franchisee paid employer payroll taxes. Those taxes are accounted for in the variable cost section below.
  • Under a franchise agreement, a restaurant not located in a food court must spend at least 2% of Net Sales on local store marketing, and a restaurant located in a food court must spend at least 1% of Net Sales on local store marketing.
  • Payroll taxes are a percentage of Net Sales. They cover social security, unemployment, and Medicare taxes for hourly and management employees.
  • Credit card charges are a percentage of Net Sales.
  • Under a franchise agreement, a restaurant not in a Food Court must contribute 3% of Net Sales to the Brand Development Fund. Those restaurants located in a Food Court must contribute 1.5% of Net Sales to the Brand Development Fund.
  • Automobile expenses include gas, tolls, repairs, and, if applicable, payments for a leased delivery vehicle.
  • Insurance costs cover general liability, workers’ compensation, and auto insurance.
  • As a franchisee operating a single restaurant, you (if you are an individual) or your principal owner (if you are a legal entity) may function as the management employee. As a franchisee operating multiple restaurants, you likely will hire 1 or more management employees.
  • Rent costs cover all charges imposed under lease agreements, including base rent, percentage rent, and common area maintenance charges. Rent costs vary significantly depending on the location of a restaurant, the local real estate market, the size and condition of the property leased, and other factors.
  • Utilities costs cover gas, electric, water, and sewer, and do not cover telephone and internet service. Telephone and internet service costs are reported under “Telephone & Internet.”
  • The total variable costs and the total fixed costs shown in the chart below do not include certain costs that you may incur as a franchisee, such as interest and financing costs; payroll management costs (if you do not manage your restaurant); travel and entertainment costs; non-cash costs such as amortization and depreciation; income taxes; and educational and training costs.

Part 2 – Average Costs of 18 Saladworks “A” Operated Restaurants in Strip Center Locations

Cost of Goods Sold



To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.

Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.



Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment - See more at: https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf

🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)



💰How Much Franchise Can You Afford? Use Our Free Financial Calculator





Franchise Winners and Losers Last Year

Tagged as: Saladworks

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous post: FDD Talk: Average Net Sales of Saladworks Franchised Restaurants (2013 FDD)

Next post: Franchise Review #10: Menchie's (Strengths, Weaknesses, and Overall Grade)

Primary Sidebar

🎯Find GOOD Franchises in Your Target Industries That Are STILL Available in Your Area (Free Tool)

💰How Much Franchise Can You Afford? Use Our Free Financial Calculator

As seen in:  New York Times, Bloomberg Businessweek, and CNBC

Login

Remember Me
Register | Lost your Password?
Reminder: Your username and password are case-sensitive.

Need help? Email franchisechatterblog@gmail.com

🚀 Daily FDD Talk Posts

College HUNKS Hauling Junk & Moving Franchise

Sport Clips Franchise

QC Kinetix Franchise

Annex Brands Franchise

Steak ‘n Shake Franchise

Garage Force Franchise

Pet Butler Franchise

Kilwins Chocolates Franchise

Matco Tools Franchise

Firehouse Subs Franchise

Mr. Handyman Franchise

GarageExperts Franchise

Tropical Smoothie Cafe Franchise

Moe’s Southwest Grill Franchise

Tim Hortons Franchise

Toppers Pizza Franchise

Sonic Drive-In Franchise

Elements Massage Franchise

Wild Birds Unlimited Franchise

Qdoba Mexican Eats Franchise

Great Harvest Franchise

Snap-On Franchise

Mathnasium Franchise

Beef Jerky Experience Franchise

Ellie Mental Health Franchise

Miracle Method Franchise

LearningRx Franchise

Ellianos Coffee Franchise

The Patch Boys Franchise

Grasons Estate Sales Franchise

Style Encore Franchise

Music Go Round Franchise

Play It Again Sports Franchise

Plato’s Closet Franchise

Once Upon A Child Franchise

Jeremiah’s Italian Ice Franchise

🏆 Best Franchises by Industry

Best Franchises by Industry (All Lists)

Best Laundromat Franchises

Best Storage Unit Franchises

Best Car Wash Service Franchises

Best Gym and Fitness Franchises

Best Pizza Franchises

Best Sandwich Franchises

Best Childcare Franchises

Best Ice Cream Franchises

Best Coffee Franchises

Best Hamburger Franchises

Best Salon and Beauty Franchises

Best Chicken Franchises

Best Smoothie and Juice Franchises

Best Maid Service Franchises

Best Mexican Restaurant Franchises

Best Massage Service Franchises

Best Tutoring Franchises

Best Auto Repair Franchises

Best Auto Oil Change Franchises

Best Asian Restaurant Franchises

Best Pet Franchises

Best Commercial Cleaning Franchises

Best Sports Bar Franchises

Best Baked Goods Franchises

Best Moving/Junk Removal Franchises

Best Mailbox Franchises

Best Apparel Retail Franchises

Best Senior Care Franchises

Best Restoration Franchises

Best Tech Franchises

Best Travel Agency Franchises

Best Trampoline Park Franchises

Best Tools Distribution Franchises

Best Salon Suites Franchises

Best Property Management Franchises

Best Laboratory Services Franchises

Best Staffing/Recruiting Franchises

Best Real Estate Franchises

Most Profitable Franchises

Top Low Cost Franchises

Franchise Chatter uses affiliate links for Franchise Help and Franchise Brokers Association.

Franchise Chatter © 2022