Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Our Latest Views on the Total Purchases of Products by Mac Tools Franchisees and Distributors (2014 FDD)

by Franchise Chatter on January 4, 2015

in Franchise Earnings, Mobile Tool Franchise



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Mac Tools Photo by Roadsidepictures

Highlights of Mac Tools’ Item 19 Financial Performance Representations (2014 FDD)

  • Those Mac Tools Businesses which were in operation for all of calendar year 2013 had total purchases of products from Mac Tools (including its predecessor) during calendar year 2013 in the amounts noted below.
  • While traditional Mac Tools distributorships are not franchises, there are many similarities between the traditional distributorship business and the franchised Mac Tools Business disclosed in the disclosure document.
  • The amounts of purchases noted below therefore include the purchases made by distributors, as well as franchisees, from Mac Tools for product inventory.
  • As of Stanley Black & Decker Inc.’s most recent fiscal year end (December 28, 2013), Mac Tools had 542 traditional Mac Tools distributorships and 410 Mac Tools franchisees (which include new franchises and distributorships that converted to a franchise).
  • Mac Tools had 542 traditional Mac Tools distributorships, 211 Mac Tools franchisees, and 83 traditional U.S. Mac Tools distributorships that converted to Mac Tools franchises that were in operation during all of calendar year 2013.
  • Information regarding total product purchases of these 542 traditional Mac Tools distributorships, 211 Mac Tools franchisees, and 83 traditional U.S. Mac Tools distributorships that converted to Mac Tools franchises is presented below.
  • These distributorships and franchises do not materially differ from the Mac Tools Business that you will operate. No information regarding Mac Tools employee distributors is included below.
  • Mac Tools sells products to its franchisees and distributors at discounts from the recommended prices at which sales of products to customers are made.
  • Franchisees and distributors set the prices at which they sell products to their customers.
  • For purposes of the Item 19 chart below, the Number of Franchisees and Distributors reported within a particular category of Total Net Purchases of Products are listed per distributor, franchisee, or conversion franchisee, and not per the number of Routes operated by a distributor, franchisee, or conversion franchisee.
  • These actual net purchase totals are of all Mac Tools distributors and franchisees who were in business during all of fiscal year 2013. They should not be considered as the actual or probable total product purchases that will be made by you. Some Mac Tools Businesses have purchased this amount. Your individual results may differ. There is no assurance that you’ll purchase as much product inventory.

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