Highlights of Mr. Rooter’s Item 19 Financial Performance Representations (2014 FDD)
- The sales figures listed below include average Gross Sales and average Gross Sales per work order derived from historical operating results of the franchised businesses indicated for the time periods covered.
- The franchisor obtained these sales figures from information provided to it by its franchisees for the period from January 1, 2013 through December 31, 2013. Neither the franchisor nor its certified public accountants have audited or verified any of the sales figures reported.
- As of December 31, 2013, the franchisor had 212 franchised businesses in operation in the U.S. Of these, 189 franchised businesses were in operation for the full 12 months of 2013 and reporting Gross Sales.
- Although all of the company’s franchised businesses that were open for a full 12 months in 2013 reported sales to the franchisor and the franchisor used those reports to provide information in the charts that present average Gross Sales below, there were 31 franchised businesses that did not report Gross Sales using the company’s proprietary software through the Reporting Period and these franchised businesses were excluded from the chart showing average Gross Sales per work order since the franchisor does not have the necessary data to calculate average revenue per work order for these businesses.
- All of the franchised businesses for which sales results are reported below were operated by franchisees. The franchisor did not operate any of the businesses.
- The franchised businesses for which sales results are reported below include some businesses that are “conversions,” businesses that were in operation before purchasing a franchise and “converting” from an independent business to a business utilizing the company’s system and brand.
- Because these are Gross Sales results only, no costs or expenses are taken into account. Profits resulting from any given level of Gross Sales may differ substantially from one business to another.
- The information in this report has not been adjusted for any factors, including geographic location, and is based on sales in one 52-week period.
Explanatory Notes for Part 1 – Average Gross Sales in 2013 Attained by Franchised Businesses in Business 12 Months or More with Full 12 Months of Sales in 2013
- Of the 212 franchised businesses in operation on December 31, 2013, 189 franchised businesses were in business for 12 months or more and had a full 12 months of reported sales in 2013. Those 189 franchised businesses are included in the chart below.
- The average Gross Sales for 2013 for 4 groups are shown: those that ranked in the top 10%, 25%, and 50%, respectively, in terms of highest level of Gross Sales; and, finally, those representing all (100%) franchised businesses in business more than 12 months with a full 12 months of sales in 2013.
Explanatory Notes for Part 2 – Average Gross Sales Per Work Order for Franchised Businesses Open Full 12 Months in 2013 and Reporting Using the Company’s Proprietary Software
- The average revenue per work order shows the average sales of all franchised businesses in the groups listed, and then the total, based on information provided by franchisees from January 1, 2013 through December 31, 2013.
- The total of 158 franchised businesses shown in this chart does not include 31 franchised businesses that did not report Gross Sales to the franchisor using the company’s proprietary software during the Reporting Period.
- The franchised businesses are grouped by the population in the territory to show the average sales for franchised businesses open for the full 12 months in 2013 in each population category and for all franchised businesses open the full 12 months in all territory populations.
Part 1 – Average Gross Sales in 2013 Attained by Franchised Businesses in Business 12 Months or More with Full 12 Months of Sales in 2013
Top 10% (in terms of level of Gross Sales) of Franchised Businesses in Business 12 Months or More