In this FDD Talk post based on Item 19 of Smoothie King’s 2014 FDD, you will find the answers to the following questions:
- What were the average gross sales of the top 10%, top 25%, top 50%, top 75%, and all traditional Smoothie King locations in 2013, 2012, and 2011? What were the range of gross sales for the top 10%, top 25%, top 50%, top 75%, and all traditional Smoothie King locations in 2013, 2012, and 2011?
- How many units were operated by franchisees and how many units were operated by Smoothie King as of December 31, 2013, December 31, 2012, and December 31, 2011?
- How many Smoothie King locations were included in the respective samples and what were the criteria for their inclusion? Were corporate-owned stores included? Were non-traditional and military base units included? If not, then why not?
- Do the units included in the samples offer substantially the same products and services to the public? Will new franchisees receive substantially the same services as those offered to existing franchisees?
- How did Smoothie King obtain the information contained in these financial performance representations? Has this information been audited or verified?
- How does Smoothie King define the term “Gross Sales”?
- What were the percentage increases in average annual gross sales for Smoothie King locations in 2013, 2012, and 2011?
- What were the criteria for inclusion in this sales growth discussion? Were corporate-owned stores included? Were non-traditional and military base units included?
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