Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2014: Our Latest Views on ZIPS Dry Cleaners’ Average Revenue, Cost of Goods Sold, Labor, Rent, and Certain Other Expenses

by Franchise Chatter on September 8, 2014

in Dry Cleaning Franchise, Franchise Earnings

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In this FDD Talk post based on ZIPS Dry Cleaners’ Item 19 financial performance representations, you will find the answers to the following questions:

  • What were the average total revenue, average total cost of goods sold, average total gross margin, and average cost of labor, rent, repairs and maintenance, and utilities for all ZIPS Dry Cleaners Businesses operated by franchisees during the period January 1, 2013 through December 31, 2013?
  • How many units were included in the sample? In what states are these units located?
  • How many units were excluded from the sample? What were the reasons for their exclusion?
  • How did ZIPS Dry Cleaners obtain the information presented in Item 19? Was the information verified or audited?
  • How does ZIPS Dry Cleaners define the following terms:  Average Revenue, Total Cost of Goods Sold, Total Gross Margin, Labor Costs, Rent, Repairs and Maintenance, and Utilities?
  • What is the typical size (in square feet) of a ZIPS Dry Cleaners Business?
  • How much does ZIPS Dry Cleaners charge franchisees for Royalties and Marketing Contributions?
  • What are Franchise Chatter’s latest views on the financial performance of ZIPS Dry Cleaners Businesses?

Zips Dry Cleaners Photo by Maryland Route 5

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