In this FDD Talk post based on Orange Leaf Frozen Yogurt’s 2014 FDD, you will find the answers to the following questions:
- What were the Average Unit Volume of the Top 10%, Top 25%, Top 50%, Top 75%, and all Orange Leaf Frozen Yogurt stores included in the sample? How large was the total sample and what were the criteria for inclusion? According to what criteria were the stores ranked? Does the sample include kiosk and mobile units?
- How does Orange Leaf define “Average Unit Volume”?
- Why did Orange Leaf exclude the two outlets that sold unapproved product?
- Why did Orange Leaf exclude those outlets that had mystery shopper scores in the bottom 25% of all Orange Leaf Frozen Yogurt stores?
- Have these statements been audited and are they based on generally accepted accounting principles?
- What were the Gross Sales, Net Sales, Cost of Goods Sold, Payroll, Marketing Fee, Rent, Royalty Fee, Utilities, Miscellaneous Expenses, and Net Operating Income of the affiliate-owned stores included in the sample? How many affiliate-owned stores were included and what were the criteria for their selection? How long have these stores been in operation? Why did Orange Leaf exclude franchised outlets in this particular section of Item 19?
- How does Orange Leaf define the terms “Cost of Goods Sold,” “Payroll,” “Marketing and Royalty Fees,” “Rent,” “Utilities,” and “Miscellaneous Expenses”?
- Why did Orange Leaf adjust the figures for Marketing and Royalty Fees for the included affiliate-owned stores?
- What are Franchise Chatter’s latest views on Orange Leaf’s financial performance representations?
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