Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2014: Our Latest Views on Rocky Mountain Chocolate Factory’s Average Gross Retail Sales for Franchised Stores

by Franchise Chatter on October 29, 2014

in Chocolate Franchise, Franchise Earnings, Retail Franchise

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In this FDD Talk post based on Item 19 of Rocky Mountain Chocolate Factory’s 2014 FDD, you will find the answers to the following questions:

  • What were the 2013 average gross retail sales for the Top 25%, Middle 50%, Lowest 25%, and All Rocky Mountain Chocolate Factory franchised stores? How many franchised stores were included in the sample and what were the criteria for their inclusion?
  • Were the gross retail sales of company-owned stores included in this information?
  • Did the franchisor include information on any satellite or temporary stores opened by franchisees?
  • How did the franchisor obtain the information included in these disclosures? Has this information been audited or independently verified?
  • What are some of the factors that may affect the results among Rocky Mountain Chocolate Factory stores?
  • Do the figures disclosed reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross sales figures to obtain net income, profit or loss?
  • Why did the franchisor list the individual gross retail sales for only the Top 75% of the 209 stores in the sample?
  • What were the actual gross retail sales in 2013 for the Top 5 and Bottom 5 stores among the Top 75% of franchised stores open at least 12 months of the company’s most recent fiscal year?
  • What are Franchise Chatter’s views on Rocky Mountain Chocolate Factory’s most recent financial performance representations?

Rocky Mountain Chocolate Factory Photo by princessrica

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