Highlights of The Beef Jerky Outlet’s Item 19 Financial Performance Representations (2014 FDD)

• The franchise is for the operation of a business under “The Beef Jerky Outlet” name which is a specialty retail food store that features a variety of jerky products, sausages and smoked meats, sauces, rubs, seasonings, marinades, jams, butters, jellies, peanuts, candies, cheeses, and other similar foods.

• Actual results vary from Store to Store and The Beef Jerky Outlet cannot estimate the results of any particular franchisee.

• The following represents the average gross sales, average gross cost, average gross profit, and average gross margin achieved by 6 Stores owned and operated by the franchisor’s affiliates and Stores owned and operated by 6 franchisees during the 2013 calendar year (the Store in which the franchisor has a partial ownership interest is counted as a franchised Store), but The Beef Jerky Outlet did not include any operating expenses.

• Your sales and expenses may vary depending on a number of factors, including the location of your Store and how you operate your business.

• These outlets have earned these amounts. Your individual results may differ. There is no assurance that you’ll earn as much.

• The figures used in this statement are average gross sales, average gross cost, average gross profit, and average gross margin only. Net income will vary from Store to Store depending upon factors such as rental or real estate costs, cost of goods sold, labor costs, and other costs relating to the operation of the Store.

• The sales revenues shown in this chart reflect the historic experience of The Beef Jerky Outlet’s affiliated Stores and those of its franchisees; they should not be considered as the actual or potential sales that you will realize.

• The Beef Jerky Outlet offered substantially the same services to the Stores described in this Statement. These Stores offered substantially the same products and services to the public as you will. The Stores report gross sales information to the franchisor based upon a uniform reporting system.

• You should also be aware that the financial performance of any particular Store might be affected by a number of factors that may vary due to the individual characteristics of the site. These factors include, but are not limited to:

• competition from other businesses;
• location of your site;
• your experience;
• your ability to operate the business;
• the quality and effectiveness of your managerial skills;
• your decisions with respect to location, additional advertising programs, personnel, and cost controls;
• geographic and socioeconomic conditions in your locality;
• business cycles;
• and the performance of the local, national, and world economy.

Table 1 – 2013 Average Results of 6 Affiliate Stores

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