Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2014: Our Latest Views on Papa Murphy’s Average Gross Sales, Cost of Goods Sold, and Operating Profits

by Franchise Chatter on May 4, 2014

in Franchise Earnings, Pizza Franchises



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In this FDD Talk post based on Papa Murphy’s 2014 FDD, you will find the answers to the following questions:

  • What were the highest, lowest, and average net sales in 2013 for Papa Murphy’s Take ‘N’ Bake Pizza stores in the top third, middle third, and low third? How many stores were included in the sample and what were the criteria for inclusion? Does the sample include both traditional and non-traditional stores? Does the sample include both franchise-owned and company-owned stores? By what measure were the stores divided into thirds? How many stores in each group exceeded the average net sales for the group?
  • What were the 2013 average gross sales, discounts, net sales, cost of goods sold (COGS), employee labor, management costs, payroll taxes, advertising, rent and common area maintenance, other store expenses, royalties, and store contribution for Papa Murphy’s stores in the top third, middle third, and low third? How many stores were included in the sample of “Benchmark” stores and what were the criteria for inclusion? How was the information presented in this section obtained?
  • How does the franchisor define the following terms:  average gross sales, discount percentages, average net sales, COGS, employee labor, management costs, payroll taxes, advertising, rent and common area maintenance, other store expenses, royalties, and store contribution?
  • What were the average same store net sales percentage increases in 2006, 2007, 2008, 2009, 2010, 2011, 2012, and 2013. How were these percentage increases calculated?
  • Since 2007, what was the average weekly net sales for new stores within their first fiscal year?
  • What are Franchise Chatter’s latest views on Papa Murphy’s financial performance representations?

Papa Murphy's Store Exterior Photo by PRO-TECT TINT LV



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