Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Average Gross Revenues for Tropical Smoothie Cafe Franchised Locations (2013 FDD)

by Franchise Chatter on April 5, 2014

in Franchise Earnings, Smoothie Franchise



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Highlights of Tropical Smoothie Cafe’s Item 19 Financial Performance Representations (2013 FDD)

  • The following tables provide historical sales information for Tropical Smoothie Cafe franchised stores (“Stores”) that were open at least one full year as of:  (a) the calendar year 2012 for 261 Stores; (b) the calendar year 2011 for 245 Stores; and (c) the calendar year 2010 for 250 Stores.
  • Tropical Smoothie Cafe SmoothiesThe tables do not include any financial performance information for any other types of franchises, such as non-traditional locations (i.e. college campus or other captive locations) or seasonal locations, and do not include any franchises of any type that had not been open for at least one year on December 30, 2012, December 31, 2011, and December 31, 2010, respectively.
  • The information presented is not a forecast of future potential performance. The gross revenue figures are based on the same computation for computing royalties as required under the Franchise Agreement.
  • The tables provide the average gross revenues for the following categories of Stores in 2012, 2011, and 2010 on a category and cumulative basis:  (a) the top 10% revenue producing Stores (meaning the average gross revenue for the number of Stores that were in the top 10% of gross revenues for that year); (b) the top 25% revenue producing Stores (which includes the Stores that are in the top 10%); (c) the top 50% revenue producing Stores (which includes the Stores that are in the top 10% and the top 25%); and (d) the top 75% revenue producing Stores.
  • The franchisor presents the average gross sales for the year in that category as well as the number and percentage achieving or surpassing the average gross sales in that category alone and cumulative for all Stores. For example, 24 of the 62 Stores in the top 25% for 2010 (or 39%), and 113 of the 250 total Stores for 2010 (or 45%) achieved or surpassed that average.
  • As of December 30, 2012, there were 329 franchised Stores and 0 company-owned Stores. Of the 329 franchised Stores, 261 were franchised Stores that had been open for at least 12 months as of December 30, 2012. Of the 329 Stores, 3 Stores were excluded since they were non-traditional locations. Of the 261 Stores referenced in the table below, all reported sufficient financial performance information to be included in this financial performance representation.
  • As of December 31, 2011, there were 301 franchised Stores and 4 company-owned Stores. Of the 301 franchised Stores, 261 were franchised Stores that had been open for at least 12 months as of December 31, 2011. Of the 261 Stores, 16 Stores were excluded since they were non-traditional locations. Of the 245 Stores referenced in the table below, all reported sufficient financial performance information to be included in this financial performance representation.
  • As of December 31, 2010, there were 289 franchised Stores and 2 company-owned Stores. Of the 289 franchised Stores, 262 were franchised Stores that had been open for at least 12 months as of December 31, 2010. Of the 262 Stores, 12 Stores were excluded since they were non-traditional locations. Of the 250 Stores referenced in the table below, all reported sufficient financial performance information to be included in this financial performance representation.
  • As stated, the sales for each of the Stores presented are limited to the sales results for Stores that had been open for a full 12 months of operations as of December 30, 2012, December 31, 2011, and December 31, 2010 respectively. Sales during the first year of operations are likely to be significantly less than for those that have been open for a year or more.
  • All Tropical Smoothie Cafe Stores offer substantially the same products and services to the public. None of the franchised Tropical Smoothie Cafe Stores received any services not generally available to other franchisees, and substantially the same services will be offered to new franchisees.
  • The franchisor obtained these historical financial results from the information submitted by its franchisees.

Average Gross Revenues in 2012

Top 10%



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{ 1 comment… read it below or add one }

Don Del Rose August 26, 2016 at 7:32 am

We have a strip center that we are trying to pick a good tenant. The new strip center is located in Troy, Michigan with a traffic exposure of +45,000 cars a day.

Don Del Rose
Cell: 386-547-7306

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