FDD Talk: Gross Sales of Handle with Care Packaging Store Businesses (2014 FDD)

Highlights of Handle with Care Packaging Store’s Item 19 Financial Performance Representations (2014 FDD)

• The data below represents the actual operating results of 38 Handle with Care Packaging Store franchised commercial centers that were in operation at least 1 year as of September 30, 2013 (1 commercial center was excluded for this reason) and in which the franchised commercial center is the principal operating activity of the business (6 franchised commercial centers operating as an add-on service to a moving and/or storage operation were excluded for this reason).

• 13 of the 38 franchised commercial centers (34%) achieved or exceeded the average annual sales level.

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  Ranges and averages grouped by thirds are as follows:  of the 12 commercial centers in the top third, 3 achieved or exceeded the stated average annual sales; of the 13 commercial centers in the middle third, 5 achieved or exceeded the stated average annual sales; and of the 13 commercial centers in the bottom third, 8 achieved or exceeded the stated average annual sales.

• The sales of products and services made by franchised hybrid commercial centers include those that reflect high margins such as shipping services, faxes and copies, and those that reflect lower margins such as postage stamp sales.

• Money order sales, electronic transfer of funds sales, utility collections, cost of third-party truck rental sales, eBay sales, cost of lottery tickets for resale, and phone cards for resale are not included in the sales figures presented here (but the fees generated by these sales are included in the gross sales figures; Handle with Care franchisees pay a royalty based on “Gross Volume” if they operate hybrid commercial centers).

• The mix of postal, printing and copying, packaging and shipping, and business support services offered to the public by each individual franchised commercial center varies. The sales volume attainable by a franchisee is largely dependent on the mix and quality of products and services offered to the public, and individual sales and marketing efforts.

• The sales reported below do not reflect cost of sales, payroll and related expenses, rent, office expenses, amortization, depreciation, income taxes or similar expenses, or debt service obligations.

• The franchisor prepared the information below from commercial center sales reports submitted by each franchised business. Those reports are not audited, and the franchisor has not undertaken to independently verify the accuracy of the information.

• There are no material differences between the operations of, or the products or services offered by, the franchised businesses whose results are reported below, and the franchises currently offered.

• A new franchisee’s financial results are likely to differ from the results stated in the financial performance representation. Some franchised businesses have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Gross Sales of Handle with Care Packaging Store Commercial Centers in Operation At Least 1 Year as of Fiscal Year Ended September 30, 2013