Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Our Latest Views on Liquid Nutrition’s Average Transaction Ticket and Gross Sales Per Selling Square Foot (2014 FDD)

by Franchise Chatter on March 31, 2015

in Franchise Earnings, Smoothie Franchise



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Liquid Nutrition Photo by top40woodworks.com

Highlights of Liquid Nutrition’s Item 19 Financial Performance Representations (2014 FDD) – Part 2 of 3

  • The Representative Stores in Tables A to D have been open and operating for 12 months as of December 31, 2011; 24 months as of December 31, 2012; and 36 months as of December 31, 2013. As such, since you will be operating a start-up store, you should not expect to achieve the same Gross Sales as listed above.
  • These figures represent averages, and Liquid Nutrition does not claim or expect that you can or will expect to achieve the same Gross Sales as shown below.
  • Liquid Nutrition cautions you that these statements relate to historical performance and are not guarantees of future results.
  • The earnings claims in Tables A to D do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the Gross Sales figures to obtain your net income or profit, including Royalty Fees and Marketing Fund Contributions that you will incur as franchisees.
  • The Representative Stores were owned by one of Liquid Nutrition’s affiliates for a portion of the Measurement Period and may experience different Gross Sales than you may earn.

Explanatory Notes for Table C – Average Transaction Ticket

  • The following table provides the annual average customer transaction ticket (“Average Ticket”) for the Measurement Period.
  • Average Ticket for each Representative Store was calculated by dividing the total annual Gross Sales for each Representative Store by the number of customer transactions during each Measurement Period.
  • Total Average Ticket was calculated by combining the total Average Ticket for each Representative Store during each Measurement Period and dividing it by the total number of Representative Stores included in the sample.

Explanatory Notes for Table D – Statement of Average Gross Sales Per Selling Square Foot

  • The following table provides the average Gross Sales Per Selling Square Foot of retail space of each Representative Store for the Measurement Period.
  • Gross Sales Per Selling Square Foot was calculated by dividing each Representative Store’s Gross Sales by each Representative Store’s total square feet of retail space for each Measurement Period.
  • Average Gross Sales Per Selling Square Foot was calculated by combining the total Gross Sales Per Selling Square Foot for each Representative Store in each Measurement Period and dividing it by the total number of Representative Stores included in each sample.

Table C – Average Transaction Ticket

2013



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