Highlights of ACFN’s Item 19 Financial Performance Representations (2014 FDD) – Part 4 of 4
- The following table (fourth table) presents the Average Annual Franchisee Income for the 2013 calendar year for certain ACFN franchisees.
- “2013 Franchisees” means all U.S. ACFN franchisees that completed training and signed an ACFN franchise agreement prior to or on December 31, 2012, and were still operating an ACFN franchise in the United States as of December 31, 2013, which consists of 165 franchisees.
- If a new ACFN franchisee acquired the entire business of an existing 2013 Franchisee, ACFN combined the information of the 2 franchisees (since it is essentially a continuation of the same business) and, for purposes of the table below, treated them as one 2013 Franchisee.
- ACFN franchisees that left the system in 2013 or completed training and signed an ACFN franchise agreement after December 31, 2012, are not included in the definition of “2013 Franchisees” and therefore not included in the table below.
- “Annual Franchisee Income” means the total amount the franchisor pays to an ACFN franchisee for a particular calendar year, which equals the fees it collected on behalf of that franchisee for that calendar year, less all applicable fees described in Item 6, including without limitation transaction surcharge fees, transaction fees, profit share, administrative fees, regional/national ad fees, virtual office fees, MLA and wireless fees, if any, for that year.
- “Average Annual Franchisee Income” for the 2013 calendar year was calculated by taking the total Annual Franchisee Income of all of the 2013 Franchisees within a respective grouping (i.e. Top 5, Top 25, or All), and dividing that total by the number of 2013 Franchisees within that grouping.
- Annual Franchisee Income for each 2013 Franchisee was based on ACFN’s year end income statements.
- The third column shows the number of 2013 Franchisees at or above the Average Annual Franchisee Income within each respective grouping; 3 or 60% for the Top 5; 9 or 36% for the Top 25; and 57 or 35% for All.
- These figures are only estimates of what ACFN thinks you may earn. Your individual results may differ. There is no assurance that you’ll earn as much.