Highlights of Zoyo Neighborhood Yogurt’s Item 19 Financial Performance Representations (2014 FDD)
- The figures presented below are historical representations based upon the financial results achieved by a franchised Zoyo Neighborhood Yogurt shop and some Zoyo Neighborhood Yogurt affiliate-owned shops.
- The affiliate-owned shops offer the same products and services that Zoyo Unit Franchise outlets will offer, but they do not pay a Royalty or Advertising Fund contribution. Zoyo Unit Franchises will pay a Royalty fee equal to 6% of Gross Revenue and an Advertising Fund contribution equal to 2% of Gross Revenue.
- The figures presented in the tables below are the actual financial results of 1 franchised Zoyo Neighborhood Yogurt shop in Indiana and 8 Zoyo Neighborhood Yogurt affiliate-owned shops in the Phoenix, Arizona area (collectively, the “Shops”) from March 1, 2013 through February 28, 2014 (the “Reporting Period”).
- As of February 28, 2014, there were 3 Zoyo Neighborhood Yogurt franchised shops and 9 Zoyo Neighborhood Yogurt affiliate-owned shops. The other 2 Zoyo Neighborhood Yogurt franchised shops were not included because the shops had not been in operation for the entire Reporting Period and the other Zoyo Neighborhood Yogurt affiliate-owned shop was not included because the shop is not operated in a traditional location.
- Table A includes the average Gross Revenues of all 9 shops divided into thirds. The first third includes the average Gross Revenues of the 3 Zoyo Neighborhood Yogurt shops with the highest Gross Revenue for the Reporting Period. The second third includes the average Gross Revenues of the 3 Zoyo Neighborhood Yogurt shops with the second highest Gross Revenue for the Reporting Period. The final third includes the average Gross Revenues of the 3 Zoyo Neighborhood Yogurt shops with the lowest Gross Revenue for the Reporting Period.
- Table B includes the Gross Revenues, cost of goods sold, crew wages, and gross profit for each of the 9 shops for the Reporting Period.
- “Gross Revenue” means the amount of all receipts for the sale of any products or services in connection with the shop and income of every kind and nature related to the shop, whether for products or services, cash, exchange, or credit, regardless of collection in case of credit; provided, however, that Gross Revenue does not include any discounts, refunds, or sales taxes or other taxes collected for transmittal to the appropriate taxing authorities.
- “Cost of Goods Sold” means the costs of the products and inventory shrinkage only, including the cost of food and paper. Cost of Goods Sold does not include freight or warranty expenses, or the cost of smallwares or supplies.
- “Crew Wages” includes hourly personnel wages, payroll tax, workers’ compensation, and related administrative expenses. The hourly personnel are employed from 10 to 30 hours per week which fluctuates with the volume of the store. Zoyo did not include any amounts spent on manager salaries as it anticipates that you will manage your Zoyo Unit Franchise yourself. All other payroll expense is included in that line item.
- “Gross Profit” is the Gross Revenue less Cost of Goods Sold and Crew Wages.
- Of the 9 shops, 5 shops (56%) met or exceeded the average Gross Revenue and 5 shops (56%) met or exceeded the average Gross Profit.
- The information below does not include all other expenses that you will incur in operating a Zoyo Neighborhood Yogurt shop. The other expenses include Royalty fees, Advertising Fund contributions, rent, marketing and advertising, automobiles, bank fees, delivery expenses, insurance, interest expenses, licenses and permits, meals and entertainment, office supplies, professional fees, laundry, telephone, and utilities.
- All of the shops operated by affiliates are located in the Phoenix, Arizona area, which has a competitive market for frozen yogurt. The characteristics of your Zoyo Franchise Unit may differ materially depending on your geographic location, competition, the market for the product, your ability to operate the Zoyo Unit Franchise, and how long you have been in business.
- Many other factors, including those described in the preceding paragraph, are unique to each Zoyo Neighborhood Yogurt shop and may significantly impact the financial performance of your Zoyo Unit Franchise.
Table A – Average Gross Revenues of 9 Zoyo Neighborhood Yogurt Shops by Thirds for the Period from March 1, 2013 through February 28, 2014
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