Highlights of Navis Pack & Ship’s Item 19 Financial Performance Representations (2014 FDD)
- As a commercial logistics center franchisee, you will sell commercial packaging, packing, shipping, moving, pick-up, delivery, crating, and transportation services for large, fragile, awkward, and valuable freight to commercial and residential customers, and you will sell boxes and packaging materials.
- The sales and financial information below is from Navis Pack & Ship commercial centers open and conducting business for the fiscal year ended September 30, 2013. These figures are based solely on information supplied by Navis Pack & Ship franchised commercial centers.
- Except as noted below, all of these locations are full, standard size, commercial facilities using the Navis Pack & Ship Marks and Navis System and generally operating from a physical warehouse in a light industrial area.
- This information has not been audited and should be read in conjunction with the accompanying notes, as well as the Disclosure Document in its entirety.
Explanatory Notes for Part 1 – 2013 Reported Average Gross Sales Volume for Locations Open 12 Months or More as of September 30, 2013
- Gross Sales do not reflect the cost of sales, operating expenses, start-up expenses, or other costs.
- “Number of Locations” means the number of locations that were used in compiling this data.
- “Average Gross Sales” reflects the mean average gross sales as reported by the locations.
- As of September 30, 2013, there were a total of 5 locations that were not open for 12 months or more and 1 remote corporate location. These locations were excluded from this chart.
- 16 of the 41 locations (39%) achieved or exceeded the stated average gross sales.
Explanatory Notes for Part 2 – 2013 Reported Average Gross Margins for Locations Open 12 Months or More as of September 30, 2013
- “Gross Margin” is the total revenue from all sources, less the cost of freight, packaging materials, and freight insurance.
- These figures do not reflect certain material costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales figures to obtain net income or profit, if any.
- The chart presents the reported Gross Margins for Navis Pack & Ship commercial centers in operation during the entire reporting period from October 1, 2012 through September 30, 2013. These figures are based on data contained in the Navis Pack & Ship proprietary software application called ABConnect for locations in operation in the U.S. and Canada at the end of the company’s fiscal year 2013.
- 17 of the 41 locations (42%) achieved or exceeded the stated average gross margin.
- Although territory size may have an effect on Gross Margins, you should not assume that by merely purchasing a larger territory your Gross Margins will be larger than otherwise. There is no assurance that you will be able to achieve the Gross Margins shown in this document, regardless of the size of your territory.
- These figures take into account only the cost of freight, packaging materials, and freight insurance, and do not make allowances for many of the other material costs included in acquiring or operating a Navis Pack & Ship commercial center.
- These figures do not include the payment of a royalty fee or any required advertising expenditures/marketing fund or other contributions.