Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2014: Our Latest Views on Cinnaholic’s Sales and Net Income for Sole Affiliate-Owned Store

by Franchise Chatter on October 20, 2014

in Bakery Franchise, Franchise Earnings

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Cinnaholic Photo by Quinn Dombrowski

  • Cinnaholic offers franchises for the operation of a bakery which offers custom gourmet cinnamon rolls and other food products and beverages it authorizes. Under the Franchise Agreement, you will operate your Bakery at a designated location. Additionally, your Bakery will be permitted to offer catering services to homes and businesses located within a 15 mile radius of your Bakery.

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

  • This Item sets forth historical revenue and net income information for 2013 for the Bakery operated by Cinnaholic’s affiliate in Berkeley, CA since 2010. The affiliate paid no Royalties or marketing or advertising fees or other fees to Cinnaholic. You as a franchisee will incur these fees.
  • The success of your franchise will depend largely upon your individual abilities and your market, and the financial results of your franchise are likely to differ, perhaps materially, from the results summarized in this Item.
  • In addition to normal sales revenue, you may receive compensation from Cinnaholic’s affiliates for telephone, mail order, and e-commerce sales which originate from customers located in your Franchise Territory. Since Cinnaholic is a new franchise, it cannot estimate the amount of this compensation or whether there will be any at all.
  • This income information is for Cinnaholic’s affiliate/predecessor in Berkeley, CA. The franchisor does not know how franchised units located elsewhere may perform.
  • Other than the following financial performance representation, Cinnaholic does not make any representations about a franchise’s future financial performance or the past financial performance of company-owned or franchised outlets.

Income Statement Summary for Affiliate-Owned Cinnaholic in Berkeley, CA

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