Highlights of Tide Dry Cleaners’ Item 19 Financial Performance Representations (2013 FDD)
- This financial performance representation shows the actual itemized revenues, expenses, and net controllable income for the 8 total Tide Dry Cleaners Outlets (4 company-owned and 4 franchised) that were open and operating as Plant Stores for over one year at the same physical premises as of June 30, 2013 (collectively, the “Covered Outlets”).
- The Covered Outlets use the prototypical business format, facilities, and operating procedures for a Plant Store that form the basis of the Tide Dry Cleaners franchise opportunity that the franchisor offers in the FDD.
- All operate in suburban locations within greater metropolitan areas of U.S. cities, and most from free-standing premises but for 1 outlet situated in an end cap location in a shopping center.
- The franchisor excluded any financial performance representation for a Drop Store format of Tide Dry Cleaners Outlet because that operating format was not available to new prospective franchisees until the current (i.e. 2013) FDD.
- The franchisor excluded other Tide Dry Cleaners Outlets operating as of June 30, 2013 from the Covered Outlets either because they:
- operated for less than one year (7 outlets);
- operated at multiple premises due to an approved relocation during the fiscal year (1 outlet);
- or requested and received the franchisor’s approval to operate as a pilot-test location for the Drop Store model (1 outlet) that the franchisor has developed during the period and has begun offering with the 2013 FDD.
- The following chart reflects the actual average performance of the Covered Outlets for its prior fiscal year covering July 1, 2012 through June 30, 2013.
- Gross Sales includes all revenue from the unit except for taxes collected from customers and remitted to taxing authorities.
- Cost of Sales represents the total costs of supplies for dry cleaning and laundry.
- Salary Labor Cost and Taxes represents salary and payroll taxes of one general manager and one assistant manager. A franchisee’s choice of management structure may be different. Labor rates vary by market.
- Utilities include, but are not limited to, electric, gas, sewer, water, waste removal, and telephone/DSL connection.
- Miscellaneous expenses include, but are not limited to, claims, durable goods, cleaning supplies, computer supplies, office supplies, uniforms, bank charges, business license, workers’ compensation insurance, business insurance, and cash over/short.
- The chart below excludes assumptions for rent, debt service related to the dry cleaning location, depreciation/amortization of equipment, real estate and other assets, royalty and technology fees, owner’s compensation, payroll processing fees, and employee benefits.
- In comparison to the network average of “Net Controllable Income” for the fiscal year for all the Covered Outlets shown below, 6 of the 8 total Covered Outlets — or 75% of those Outlets — attained or surpassed the stated results.
- The franchisor calculated the figures below using information from the financial reports of the Covered Outlets. These figures have not been audited nor has the franchisor sought to independently verify their accuracy.
- Some Tide Dry Cleaners Outlets have sold or earned the amounts shown below. Your individual results may differ. There is no assurance you’ll sell or earn as much. Your results will depend on many factors, some of which include competition, overall economic conditions, and your experience, marketing abilities, and skill in managing a business.
Average Revenues, Expenses, and Net Controllable Income of 8 Tide Dry Cleaners Outlets (Locations Open 12 Months or Longer)
July – September 2012 (1st Quarter FY 12/13)