Highlights of Toppers Pizza’s Item 19 Financial Performance Representations (2013 FDD) – Part 1
Explanatory Notes for Table A – 2012 Average Profit and Loss for Affiliate-Owned Restaurants
- The following table contains profit and loss information for the fiscal year ended December 30, 2012 for affiliate-owned restaurants that were open for the entire fiscal year.
- These expenses do not reflect a 5% management fee paid to the principal owner of each restaurant.
- The percentages in each column reflect the expense figure for that particular category divided by Gross Sales.
- Gross Profits is calculated by subtracting Cost of Goods Sold from Gross Sales.
- Cost of Labor covers employees’ actual wages and manager’s salary and does not include any labor taxes or benefits.
- Employee Benefits include health insurance, 401(k) contributions, vacation pay, and discretionary bonuses for managers and employees.
- Mileage is a per-delivery fee paid to delivery drivers. Currently, the franchisor’s affiliate stores pay delivery drivers $0.60 per delivery, although some franchisees pay more than this.
- Restaurants owned by the franchisor’s affiliate will contribute to the Advertising and Marketing Fund on the same basis as franchisees.
- Restaurants owned by the franchisor’s affiliate will pay the Continuing Royalty on the same basis as franchisees.
Table A – 2012 Average Profit and Loss for Affiliate-Owned Restaurants
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