Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Our Latest Views on the Average Gross Profit for Franchised Renters Warehouse Businesses (2014 FDD)

by Franchise Chatter on March 26, 2015

in Franchise Earnings, Property Management Franchise



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Renters Warehouse 2

Highlights of Renters Warehouse’s Item 19 Financial Performance Representations (2014 FDD)

  • The franchise offered is for the operation of a franchised Renters Warehouse business that provides property management and tenant placement services to owners and landlords of single-family residences, condominiums, townhomes, and apartments.
  • The financial performance information contained in this Item 19 includes the average historical gross profit information experienced by 3 of the 8 Renters Warehouse franchised businesses in operation as of December 31, 2013.
  • The 3 Renters Warehouse franchised businesses included in this Item 19 reflect those franchised businesses that were in operation during the entire time period of January 1, 2013 to December 31, 2013 (the “Measurement Period”).
  • The 5 Renters Warehouse franchised businesses not included in this Item 19 (the “Excluded Franchised Businesses”) are not included because they were not in operation during the entire Measurement Period.
  • Specifically, 4 of the 5 Excluded Franchised Businesses opened during the Measurement Period, and 1 of the 5 Excluded Franchised Businesses was transferred to new ownership during the Measurement Period.
  • As such, these 5 Excluded Franchised Businesses did not operate during the entire 12-month Measurement Period. The actual results for the 5 Excluded Franchised Businesses will vary from the figures presented below.
  • As used in Item 19, “Gross Profit” means all income generated by the franchised business during the Measurement Period without taking into account any business or operating costs and expenses.
  • The average gross profit figures detailed below do not reflect all of the costs of sales, operating expenses, or other costs or expenses that must be deducted from gross profit to obtain net income.
  • For example, Item 19 does not include costs associated with paying any royalty fees, marketing expenses, rent payments, employee expenses, or other miscellaneous business operating expenses you will incur.
  • You should conduct an independent investigation of the costs and expenses you will incur in operating your Renters Warehouse franchised business. Franchisees or former franchisees listed in the Disclosure Document may be one source of this information.
  • Renters Warehouse has not audited this information for purposes of this Item 19. The information contained in this financial performance representation was provided to Renters Warehouse by its franchisees.
  • Renters Warehouse does not represent that you can expect to attain these results. There is no assurance that you will achieve the same figures detailed below.
  • You must bear in mind that a newly-opened business should not be expected to achieve sales volumes similar to that of an established business.
  • Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.
  • The average gross profit for the 3 Renters Warehouse franchised businesses in operation during the Entire Measurement Period is as follows:


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