Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Statement of Profit and Loss for a Company-Owned Pieology Restaurant (2013 FDD)

by Franchise Chatter on April 21, 2014

in Franchise Earnings, Pizza Franchises

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Highlights of Pieology’s Item 19 Financial Performance Representations (2013 FDD)

  • Pieology’s financial performance representation is based on the historic performance of the first Pieology Restaurant, which is a company-owned restaurant in the northern Orange County city of Fullerton, California (the “Fullerton Restaurant”). The Fullerton Restaurant is owned and operated by the franchisor’s affiliate, Pieology Fullerton LLC.
  • As of the end of fiscal year 2012, there were no franchised Pieology Restaurants.
  • The Fullerton Restaurant generally reflects the mix of characteristics that the franchisor expects for new franchised Pieology Restaurants. The Fullerton Restaurant occupies 2,850 square feet of space in a strip mall location in an urban area.
  • The franchisor expects that franchised Pieology Restaurants will offer the same products and services as the Fullerton Restaurant. If your Pieology Restaurant differs significantly from the Fullerton Restaurant, these results may not be relatable to your Restaurant.
  • These results are based on Pieology Fullerton’s internal unaudited profit and loss statement. This financial performance representation discloses total sales, costs of goods sold, gross profit, labor costs, certain operating expenses, and EBITDA for the rolling thirteen (13) four (4) week periods ending March 25, 2013.
  • The franchisor used this data because it is the most recent information it has to date. The franchisor excluded the sales and expense data prior to Period 4, 2012 because sales and costs for new restaurants fluctuate during the first 6 months of operation. The franchisor believes that the sales and expense data from the most recent operating periods provide a more realistic representation of a Pieology Restaurant’s operational performance, considering the natural maturation that occurs after the early months following a new restaurant’s opening.
  • The primary difference between the results below and a franchised store is that the franchised store will need to account for royalty payments and contributions to the advertising fund, which the Fullerton store does not pay because it is a corporate store.

Pieology Photo by thisgirlangie

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