Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
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  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
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FDD Talk 2014: Our Latest Views on Yogurt Lab’s Unit Sales, Food Costs, Rent, Labor Costs, and Operating Margin

by Franchise Chatter on June 5, 2014

in Franchise Earnings, Frozen Yogurt Franchises



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Yogurt Lab

Highlights of Yogurt Lab’s Item 19 Financial Performance Representations (2014 FDD)

  • This Item 19 contains certain historical data relating to the operation of Yogurt Lab’s 7 affiliate-owned locations which were open as of December 31, 2013.
  • The taxable annual sales data included in the Table reflects information for 2013 for each Store which was open during 2013.
  • The table also shows percentage food cost, labor cost, and gross rent for each of the 7 Stores in 2013.
  • Yogurt Lab has not audited this information, nor independently verified this information.
  • All percentages are as of that particular Store’s sales and are minus any start-up/build costs.
  • Because of the seasonality of the business, the timing of the opening of a Store open less than a year ago can have a material impact on some of the cost percentages. For example, both Eagan and Wayzata stores were not opened during the first quarter of 2013 which is a seasonally slow period resulting in lower gross rent and labor cost percentages.
  • Food cost includes yogurt mix, milk, and all toppings.
  • Gross rent includes base rent, CAM, taxes, and percentage rent.
  • Labor cost includes wages (both hourly and salaried). Labor cost does not include payroll tax or any benefits.
  • Other operating expenses include supplies, cups and spoons, advertising, repairs, maintenance, business licenses, credit card processing fees, printing, and services.
  • The information set forth below reflects only some expenses associated with the ongoing operations of a Yogurt Lab Store. You will incur many other types of expenses in operating a Yogurt Lab Store, such as:  (1) Royalty Fee; (2) Brand Fund Contribution; (3) insurance; (4) debt service, interest, and bank charges.
  • Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much. A new franchisee’s individual results may differ from the results stated in this financial performance representation.

Calhoun



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