Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Total Gross Sales, Comparative Gross Sales, and First 8 Quarters of Gross Sales for Alphagraphics Business Centers (2013 FDD)

by Franchise Chatter on January 31, 2014

in Franchise Earnings, Printing Franchise



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Highlights of Alphagraphics’ Item 19 Financial Performance Representations (2013 FDD) – Part 1

  • This Item 19 provides certain historical data as provided by Alphagraphics franchisees.
  • For purposes of this Item 19 only, “Gross Sales” means all sales a franchisee derives from operating the Business Center. The company’s fiscal year is July 1 through June 30.

Explanatory Notes for Part 1 – Total Gross Sales for All Alphagraphics Business Centers

  • Alphagraphics LogoThe table below shows the combined Gross Sales for all Alphagraphics Business Centers during the last 3 fiscal years. These numbers include Gross Sales for Business Centers located in the U.S.
  • On June 30, 2011, Alphagraphics had 241 Business Centers in the United States.
  • On June 30, 2012, Alphagraphics had 244 Business Centers in the United States.
  • On June 30, 2013, Alphagraphics had 245 Business Centers in the United States.

Explanatory Notes for Part 2 – Comparative Annual Gross Sales

  • The table below compares annual Gross Sales information reported by U.S. Business Center franchisees for fiscal years 2013 and 2012. This table provides information for Business Centers that have been in operation for 4 years or more as of June 30, 2013 and June 30, 2012.
  • The tables exclude data from (i) Business Centers that were not operational for 4 full fiscal years as of June 30, 2013 or June 30, 2012; and (ii) Business Centers that failed to provide the franchisor with sales data.
  • As of June 30, 2013, there were a total of 245 U.S. Business Centers, 164 of which were operational for 4 years or more. Of the 164 Business Centers included in the 2013 data, 46 (28%) met or exceeded the Average Annual Gross Sales for the fiscal year ended June 30, 2013.
  • As of June 30, 2012, there were a total of 244 U.S. Business Centers, 158 of which were operational for 4 years or more. Of the 158 Business Centers included in the 2013 data, 48 (30%) met or exceeded the Average Annual Gross Sales for the fiscal year ended June 30, 2012.
  • A multi-unit Business Center is a franchisee that owns more than one Business Center. All multi-unit Business Centers are counted as one Business Center because the franchisee provides the franchisor with only one sales report for all Business Centers.
  • As of June 30, 2013, 26 of the 164 Business Centers were multi-unit centers. As of June 30, 2012, 23 of the 158 Business Centers were multi-unit Business Centers.
  • “Median” is the numerical value separating the higher half of the sample from the lower half of the sample. As a result, in all cases when a median number is stated, approximately 50% of the Business Centers met or exceeded the stated median.
  • The figures outlined in the Comparative Annual Gross Sales Table below does not reflect the cost of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales figures to obtain your net income or profit.

Explanatory Notes for Part 3 – First 8 Quarters of Gross Sales for a New Business Center

  • ┬áThe data below provides quarterly Gross Sales information from the first 2 years of operations for new Business Centers in the U.S. that commenced operations between January 1, 2007 and June 30, 2013 and were in operation for at least 3 months.
  • There was a total of 30 new Business Centers that commenced operations in the U.S. during this period.

Part 1 – Total Gross Sales for All Alphagraphics Business Centers



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