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FDD Talk 2014: Our Latest Views on Complete Nutrition’s Average Annual Gross Revenue and Cost of Goods Sold

Published on September 24, 2014 by Franchise Chatter Leave a Comment
in Franchise Earnings, Retail Franchise, Sports Nutrition Franchise

Complete Nutrition Store Photo


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Highlights of Complete Nutrition’s Item 19 Financial Performance Representations (2014 FDD)

  • Complete Nutrition’s financial performance representation consists of 4 tables. In all tables, Complete Nutrition has excluded the performance of outlets that were not in operation for all of the 2013 calendar year because the partial year performance of those outlets is not indicative of the performance one would reasonably expect to see over an entire calendar year period.
  • Table 1 contains the 2013 average Gross Sales and average Costs of Goods Sold for the 150 franchised Complete Nutrition Stores that were open for business for the full 12 months of the 2013 calendar year. These outlets represent 87% of the 172 franchised outlets open for business on December 31, 2013 and 84% of the 178 total outlets open for business on December 31, 2013.
  • Table 2 contains the 2013 average Gross Sales and average Costs of Goods Sold for the 33 Complete Nutrition Stores that began operating in 2012, and were open for business for the full 12 months of the 2013 calendar year. These outlets represent 19.2% of the 172 franchised outlets open for business on December 31, 2013 and 18.5% of the 178 total outlets open for business on December 31, 2013.
  • Table 3 contains the 2013 average Gross Sales and average Costs of Goods Sold for the 64 Complete Nutrition Stores that began operating in 2011, and were open for business for the full 12 months of the 2013 calendar year. These outlets represent 37.2% of the 172 franchised outlets open for business on December 31, 2013 and 36.0% of the 178 total outlets open for business on December 31, 2013.
  • Table 4 contains the 2013 average Gross Sales and average Costs of Goods Sold for the 38 Complete Nutrition Stores that began operating in 2010, and were open for business for the full 12 months of the 2013 calendar year. These outlets represent 22.1% of the 172 franchised outlets open for business on December 31, 2013 and 21.3% of the 178 total outlets open for business on December 31, 2013.
  • Average Annual Gross Sales has been calculated by dividing the aggregate annual Gross Sales reported to the franchisor by the franchised Complete Nutrition Stores in the sample by the number of franchised Complete Nutrition Stores in the sample.
  • Average Cost of Goods Sold has been calculated by dividing the aggregate cost of goods reported to the franchisor by the franchised Complete Nutrition Stores in the sample by the aggregate annual Gross Sales reported to the franchisor.
  • There are no material differences between the business conducted by these Complete Nutrition Stores and the Store to be operated by you under the Franchise Agreement. All outlets reported operate under the same System and Marks and with similar operating requirements. However, there are differences.
  • Your costs and expenses may differ from those of other franchisees. Costs and expenses can vary greatly from area to area and location to location based on numerous factors, like the typical rental rate for retail space and the prevailing wage rates in particular geographic regions.
  • You may have additional expenses that were not reflected in the table below. Therefore, you may incur other costs and expenses that are not reflected in the figures below. Complete Nutrition does not estimate the costs and expenses for your particular operation.
  • Revenue will vary from outlet to outlet due to various factors, including the demand for the goods and services offered by Complete Nutrition Stores, the type and number of competitive businesses in the market, advertising efforts, management experience, location, and other factors.
  • Actual results vary from franchise to franchise, and Complete Nutrition cannot estimate the results of a particular Store. A new franchisee’s results are likely to differ from the results shown in this Item.
  • This financial performance representation was prepared without an audit. Prospective franchisees should be advised that no certified public accountant has audited these figures or expressed an opinion with regard to their contents or form.

Table 1 – Average Annual Gross Revenue and Cost of Goods Sold for 150 Franchised Complete Nutrition Stores Operated for Full 12 Months of the 2013 Calendar Year



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