Highlights of V’s Barbershop’s Item 19 Financial Performance Representations (2014 FDD)
Explanatory Notes for Section I – Unaudited Chart Reflecting Reported 2013 Gross Revenue, Reported Number of Total Visits for Units, and Average Ticket Per Visit for Units Opened at Least One Calendar Year
- Section 1 below reflects reported Gross Revenue, reported Number of Visits, and calculated Average Ticket Per Visit for 2 corporate V’s Barbershops and 14 franchised V’s Barbershops for the calendar year ended December 31, 2013.
- Each of the 16 V’s Barbershops identified in the chart below were open for at least 1 year as of December 31, 2013.
- The Average Ticket Per Visit was calculated by dividing the total reported Gross Revenue for a location by the reported Number of Visits for each location. For example, the Average Ticket Per Visit for Franchise Unit 1 was calculated as follows: $481,982/16,440=$29.32 Average Ticket Per Visit.
- Average All Units reflects the average reported Gross Revenue, average Number of Visits, and Average Ticket Per Visit for all 16 locations included in the chart.
- The Average Company Unit and Average Franchise Unit include the same information but only include the 2 company locations (for Average Company Units 1-2) and 14 franchise locations (for Average Franchise Units 1-14).
- The Company Units and several of the Franchise Units included in the table are mature businesses, having operated for several years. As a result, they have established significant goodwill and a referral network. A new V’s Barbershop will not have established goodwill or a referral network and, therefore, its gross sales are likely to differ from the results reflected below.
- Further, your Gross Sales and your financial results will depend upon, among other things, such factors as:
- how much you follow V’s Barbershop’s methods and procedures;
- your management skill, experience, and business acumen;
- whether you personally manage your V’s Barbershop or hire a manger;
- the region in which your V’s Barbershop is located;
- local and national economic conditions;
- whether the premises is in a new or existing center;
- the physical size and location of your V’s Barbershop;
- the skill and experience of your barber staff;
- your ability to retain your barber staff;
- the condition of the premises and the amount and nature of tenant improvements required;
- the architectural criteria of the center;
- the HVAC and electrical systems present or necessary;
- the local market for the services and products offered by V’s Barbershops;
- the prevailing wage rate;
- competition and the sales level reached during the initial period.
Explanatory Notes for Section II – Unaudited Chart of Operating Results for Company-Owned Units
- Payroll costs include wages, salaries, commissions, bonuses, and the related payroll taxes. Barbers at company-owned units are generally paid a commission equal to 50-55% of that barber’s production. Commission rates for barbers located outside the Phoenix, Arizona metropolitan area generally range from 35-50%.
- Occupancy costs include all rent, common area maintenance, and any other pass-through expenses from the landlord.
- Other Operating Expenses include utilities, supplies, credit card processing fees, resale merchandise, and miscellaneous other operating expenses.
- Net Operating Income excludes franchise royalties, advertising fund contributions, and depreciation.
- The company-owned V’s Barbershops included in the table below are mature businesses, having operated for several years in the metropolitan Phoenix area. As a result, they have established significant goodwill and a referral network. A new V’s Barbershop will not have established goodwill or a referral network, and therefore, its gross sales are likely to differ from the results reflected below.
Section I – Unaudited Chart Reflecting Reported 2013 Gross Revenue, Reported Number of Total Visits for Units, and Average Ticket Per Visit for Units Opened at Least One Calendar Year
To Access the Rest of This Article and Other Premium, Income-Enhancing Content, Subscribe Now or Log In.
Gain the Insider Information (and Actual Earnings Data) You Need to Make a Safe and Smart Franchise Investment. Click Here to Learn More.
Gain
the Insider Information (and Actual Earnings Data) You Need to Make a
Safe and Smart Franchise Investment - See more at:
https://www.franchisechatter.com/register/#sthash.le7wKJKM.dpuf
Leave a Reply