Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Statement of Average Gross Sales for Franchised Smoothie King Locations (2013 FDD)

by Franchise Chatter on April 7, 2014

in Franchise Earnings, Smoothie Franchise



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Highlights of Smoothie King’s Item 19 Financial Performance Representations (2013 FDD) – Part 1

  • Under Section A below, Smoothie King has provided unaudited statements of average annual Unit Gross Sales as of December 31, 2012 and December 31, 2011.
  • Under Section B (in Part 2), Smoothie King has provided information on the average annual Gross Sales percentage increase for Units comparing the 2012 and 2011 calendar years, the 2011 and 2010 calendar years, and the 2010 and 2009 calendar years.
  • Smoothie King Interior PhotoThe Units used in the data below included franchised Units and 3 Units that were acquired by Smoothie King in late December 2012 and that were only operated by Smoothie King for less than two weeks in the year ended December 31, 2012. The data below does not include any other Units operated by Smoothie King.
  • All Units offer substantially the same products and services to the public. New franchisees will receive substantially the same services as those offered to existing franchisees.
  • Smoothie King obtained these historical financial results from the information submitted by its franchisees. Neither Smoothie King nor an independent certified public accountant has independently audited or verified the information.

Explanatory Notes for Section A – Statement of Average Gross Sales for 2012 and 2011

  • The two tables provide information on average Gross Sales of Units during each of the 12 month periods starting January 1, 2012 and ending December 31, 2012; and starting January 1, 2011 and ending December 31, 2011. The Units are limited to Units operated by franchisees.
  • The term “Gross Sales” is defined as all products and services sold in or from the Unit, including off premises catering and delivery, but excluding excise or sales taxes.
  • The data below is a representation of average Gross Sales for Units broken into 5 segments:  top 10%, top 25%, top 50%, top 75%, and total/all. The Units were ranked by Gross Sales in descending order.
  • Gross Sales information is provided on Traditional locations only, with Non-Traditional and military base locations excluded. Non-Traditional and military base locations are excluded as they typically operate with a limited menu and have a non-public trade area.
  • The information disclosed in Table A-1 is limited to average Gross Sales for Units that had been open for a full 12 months of operations as of December 31, 2012; and the information disclosed in Table A-2 is limited to average Gross Sales for Units that had been open for a full 12 months of operations as of December 31, 2011.
  • Gross Sales during the first year of operations likely may differ than for those that have been open for a year or more.

Explanatory Notes for Table A-1 – Average Gross Sales of Traditional Locations (January 1, 2012 to December 31, 2012)

  • As of December 31, 2012, there were 503 Units operated by franchisees and 5 Units operated by Smoothie King.
  • Of the 508 Units, 482 Units operated by franchisees and 4 Units operated by Smoothie King had been open for at least 12 months as of December 31, 2012.
  • Of those 486 Units, 28 Units were excluded because they were Non-Traditional Units or military base locations, and one Unit was excluded because it was operated by Smoothie King for the entire year ended December 31, 2012.
  • The remaining 3 units operated by Smoothie King as of December 31, 2012 were included in Table A-1 below because Smoothie King acquired these Units in late December 2012 and the Units were operated by franchisees for most of the 12 month period ending December 31, 2012 and are considered franchised Units for the purpose of this Item 19.
  • Of the 457 Units referenced in Table A-1 below, all reported sufficient financial performance information to be included in this financial performance representation. During this time period, the range of Gross Sales of all Units was $51,427 to $1,341,902.

Table A-1 – Average Gross Sales of Traditional Locations (January 1, 2012 to December 31, 2012)

Top 10%



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