Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

  • Anytime Fitness
  • CruiseOne
  • Firehouse Subs
  • Jimmy John's
  • Massage Envy
  • Menchie's
  • Orange Leaf Frozen Yogurt
  • Planet Fitness
  • The UPS Store
  • Yogurt Land
  • And Hundreds More...

No, thanks. I'm not interested in uncovering the actual earnings of hundreds of franchises at this time.

FDD Talk: Our Latest Views on Circle K’s Average Sales Growth and Franchisee Rebates (2014 FDD)

by Franchise Chatter on January 8, 2015

in Franchise Earnings, Retail Franchise



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Circle K Convenience Stores 2

Highlights of Circle K’s Item 19 Financial Performance Representations (2014 FDD) – Part 2

  • The information contained in Item 19 relating to company-operated Circle K Stores is provided by the company’s own internal accounting of company-operated Circle K Stores. The information relating to franchised stores is based solely on the monthly sales reports provided to Circle K by franchisees in the ordinary course of business. None of this information has been audited.
  • You are likely to achieve results from operations that are different, possibly significantly and adversely, from the results shown below. Many factors, including merchandise sales (for a c-store conversion), location, physical size and layout, management capabilities, ability to obtain a beer and wine license, local market conditions, and other factors, are unique to each Store and may significantly impact the financial performance of your store.
  • The financial performance representations below do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Explanatory Notes for Section IV – Annual Merchandise Sales and Sales Growth

  • There are 159 franchised Circle K Stores that have been open and operating for three full years as of April 30, 2014. The following table illustrates the annual merchandise sales and the related sales growth for these locations during their first, second, and third years in operation.

Explanatory Notes for Section V – Conversion Stores Average Merchandise Sales and Sales Growth

  • There are 99 franchised stores that have been converted to Circle K Stores from another existing convenience store since January 1, 2004 for which Circle K received adequate documented pre-conversion sales and that have at least 12 months of sales history as of April 30, 2014.
  • The table below illustrates the average monthly sales and their sales growth achieved in the first 12 months of operations following their conversion to Circle K.
  • Of these 99 stores, 62 stores have at least 24 months of sales history as of April 30, 2014. The table below illustrates the average monthly sales and their sales growth achieved in their second 12 months of operations following their conversion to Circle K.

Explanatory Notes for Section VI – Average Franchisee Rebates

  • As a Circle K franchisee, you will have access to various supplier agreements that Circle K company-operated locations utilize. In addition to preferred pricing that is negotiated on your behalf to receive off invoice discounts, many supplier agreements contain rebates based on the products purchased.
  • In order to receive such rebates, you must comply with the requirements of those supplier agreements. The table below illustrates the level of rebates Circle K franchisees (who were in operation for the entire 12-month period ending April 30, 2014) qualified for, earned, and were paid for during 2014, and for whom Circle K manages the rebate process.
  • Please note that these amounts exclude all rebates Circle K franchisees earned based on cigarette purchases, since those payments are made directly to franchisees and are not managed by Circle K.

Section IV – Annual Merchandise Sales and Sales Growth

Year 1



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