FDD Talk 2014: Our Latest Views on Flip Flop Shops’ Average Annual and Weekly Gross Sales

In this FDD Talk post based on Item 19 of Flip Flop Shops’ 2014 FDD, you will find the answers to the following questions:

• What were the 2013 average annual and weekly gross sales for the franchised Flip Flop Shops stores in the United States (including stores in U.S. territories) and Canada that operated during the entire calendar year, and were open and operating as of December 31, 2013?

• How many Flip Flop Shops stores were included in the sample? What percentage of the total Flip Flop Shops stores in the United States (including stores in U.S. territories) and Canada does this sample represent?

• How many stores in the sample are located in Canada?

• How many, and what percentage of, stores in the sample achieved the average annual/weekly gross sales or higher?

• What are some of the factors that can affect gross sales at individual stores?

• Does the financial performance representation reflect any cost of sales, operating expenses, and other costs or expenses that you will incur in operating the store, including the royalties and advertising contribution?

• Does the financial performance representation include any debt service or equipment lease costs that may be incurred in the operation of a Flip Flop Shops store?

• Does the financial performance representation include any information about the federal, state, or local income taxes payable on any net income derived from the operation of the store?

• How did the franchisor obtain the information contained in the financial performance representation? Has this information been audited?

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