FDD Talk 2014: Our Latest Views on Firehouse Subs’ Average Gross Sales, Operating Expenses, and Operating Income

In this FDD Talk post based on Firehouse Subs’ 2014 FDD, you will find the answers to the following questions:

• What were the historical average unit volume figures for company-owned and franchised Firehouse Subs locations that were open during the company’s fiscal years 2013, 2012, and 2011?

• How many company-owned and franchised restaurants were included in the sample? What were the specific sales volume ranges used to group the restaurants?

• How did Firehouse Subs obtain the sales information presented in Item 19? Was this information audited?

• What are the typical expenses you will incur when operating a Firehouse Subs restaurant?

• What were the average food sales, discounts, employee meals, food and paper costs, wages and benefits, health insurance, telephone and utilities, professional fees, rent and occupancy expenses, other operating expenses, marketing expenses, royalties, and EBITDA from operations for company-owned Firehouse Subs restaurants in 2013, 2012, and 2011?

• How many company-owned restaurants were included in the sample? What were the specific sales volume ranges used to group the restaurants?

• Does Firehouse Subs’ Statement of Operations conform with generally accepted accounting principles?

• Why doesn’t Firehouse Subs provide expense and net income information for franchisee-owned restaurants?

• What are Franchise Chatter’s latest views on Firehouse Subs’ financial performance representations?