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Earnings Claims of Top Franchises Revealed

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FDD Talk: Our Latest Views on Solos Pizza Cafe’s Gross Sales, Cost of Sales, and Gross Profit (2014 FDD)

by Franchise Chatter on February 1, 2015

in Fast Casual Restaurant Franchise, Franchise Earnings, Pizza Franchises



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Solos Pizza Cafe

Highlights of Solos Pizza Cafe’s Item 19 Financial Performance Representations (2014 FDD)

  • Solos Pizza Cafe Restaurants sell high-quality, individual, made-to-order pizzas served quickly in a casual dining setting.
  • This Item 19 is based upon historical financial performance information from the 3 Solos Pizza Cafe Restaurants owned and operated by the Affiliate in Maple Grove, Plymouth, and Eagan, Minnesota (“Affiliate Restaurants”), during the period from January 1, 2013 to December 31, 2013 (the “2013 Fiscal Year”), as provided to the franchisor by the Affiliate.
  • All of the Affiliate Restaurants have patios and serve a menu of food items substantially similar to the menu of food items that will be offered in franchised Solos Pizza Cafe Restaurants.
  • The Maple Grove, MN Affiliate Restaurant is located at 13356 Bass Lake Road, Maple Grove, Minnesota, 55311, and has been continuously owned and operated by the Affiliate since it opened in February 2007. This Affiliate Restaurant has approximately 2,570 square feet, seats 110 (68 inside and 42 outside on the patio), and is located on an endcap.
  • The Plymouth, MN Affiliate Restaurant is located at 2700 Annapolis Circle North, Plymouth, Minnesota, 55441, and has been continuously owned and operated by the Affiliate since it opened in July 2008. This Affiliate Restaurant has approximately 2,830 square feet, seats 114 (74 inside and 40 outside on the patio), and is located on an endcap.
  • The Eagan, MN Affiliate Restaurant is located at 1270 Promenade Place, Eagan, Minnesota, 55121, and has been continuously owned and operated by the Affiliate since it opened in February 2010. This Affiliate Restaurant has approximately 2,520 square feet, seats 90 (78 inside and 12 outside on the patio), and is located in an in-line space.
  • “Discounts” mean customer discounts, including, without limitation, those relating to coupons, the “kids eat free” program, and other loyalty or promotional programs the Affiliate implemented.
  • “Gross Sales” has the same general meaning as in the Franchise Agreement, except that it applies to the sales of products and services from the Affiliate Restaurants.
  • “Cost of Sales” means the total of “Cost of Food, Beverage, and Paper,” “Hourly Labor,” and “Payroll Taxes,” as these terms are defined below.
  • “Cost of Food, Beverage, and Paper” means the cost of all food and beverages, and related paper and plastic items, used in making and serving products offered from the Affiliate Restaurant.
  • “Hourly Labor” means all hourly labor except for the salaried manager.
  • “Payroll Taxes” means payroll taxes, including federal, state, FICA, and unemployment taxes, for all employees, including salaried employees.
  • “Gross Profit” for each Affiliate Restaurant was derived by subtracting the relevant Cost of Sales from relevant Gross Sales.
  • “Gross Profit Percentage” for each Affiliate Restaurant was derived by dividing the relevant Gross Profit by relevant total Gross Sales.
  • The Gross Profit figures described below do not reflect all of the costs and expenses relating to the operation of a Solos Pizza Cafe restaurant, including, without limitation, Royalty Fees and Marketing Fees paid to the franchisor, rent, advertising and marketing, insurance, utilities, salary of the manager, maintenance and repairs, and bank and credit card fees.
  • These costs must be deducted to obtain your net income or profit.
  • You are responsible for developing your own business plan for your Solos Pizza Cafe Restaurant. In developing a business plan, you are cautioned to make necessary allowance for changes in financial results to income, expenses, or both that may result from operation of a Solos Pizza Cafe Restaurant during periods of, or in geographic areas suffering from, economic downturns, inflation, unemployment, or other negative economic influences.
  • The Affiliate Restaurants have achieved these Gross Sales, Cost of Sales, and Gross Profit amounts, and the Gross Profit Percentages. Your individual results may differ. There is no assurance you’ll earn as much.

Maple Grove, MN Affiliate Restaurant



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