Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk 2014: Our Latest Views on Bad Daddy’s Burger Bar’s Average Gross Sales, Cost of Goods Sold, and Labor Costs

by Franchise Chatter on November 16, 2014

in Franchise Earnings, Hamburger Franchise, Restaurant Franchise

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Bad Daddy's Burger Bar 2

Highlights of Bad Daddy’s Burger Bar’s Item 19 Financial Performance Representations (2014 FDD)

  • East Blvd., Ballantyne, and Birkdale are the only Bad Daddy’s Burger Bar locations with at least eighteen (18) months of operating experience as of December 31, 2013, other than the airport location, which is a non-traditional unit. As a result, the statements contained in Item 19 reflect the operations of mature, established Restaurants. Your Restaurant will not have a similar operating history when it opens for business.
  • “Total Net Sales” includes total Restaurant food sales, total catering food sales, and total bar sales, but excludes all “Promotions and Allowances” and federal, state, or municipal or service taxes collected from customers and paid to the appropriate taxing authority.
  • “Promotions and Allowances” include returns, allowances, sales promotions, employee discounts, and certain other similar adjustments.
  • “Total Net Sales” as used in Item 19 may not be the same as “Gross Sales,” as that term is defined in the Franchise Agreement.
  • “Total Food Sales” includes total Restaurant food sales and total catering food sales.
  • “Cost of Goods Sold” means all food and beverage costs.
  • “Cost of Labor” means wages paid to the front of the house employees (including waitstaff, bartenders, hosts, and runners) and back of the house employees (including both hourly and salaried kitchen employees), plus health and workers compensation insurance and payroll taxes.
  • The Total Net Sales were derived from the unaudited financial reports prepared by the franchisor for East Blvd., Ballantyne, and Birkdale. This information was compiled on the basis of generally accepted accounting principles, consistently applied.
  • The information contained in Item 19 does not reflect the actual or probable sales and expenses that you will realize. Your results will likely differ from the results of the Company-Owned Restaurants used in these financial performance representations.
  • Performance varies from Restaurant to Restaurant and the information below cannot be used to predict future performance of any particular Restaurant. Sales volume may vary for a variety of factors, including hours of operation, location, size of Restaurant, local popularity, traffic patterns, competition from other restaurant concepts, visibility, quality of operation, reputation, and local and national economic conditions.
  • For example, the Restaurants described above are located in Charlotte, North Carolina, where the concept was founded and where the Bad Daddy’s name, concept, and quality is recognized locally.
  • Cost of Goods Sold and Cost of Labor may vary significantly based on any number of factors, including higher food and distribution costs and the cost and availability of qualified labor.

Statement of and Information Regarding Net Sales of the Company-Owned Restaurants Owned by East Blvd., Ballantyne, and Birkdale for Calendar Year 2013

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