Highlights of Benjamin Franklin Plumbing’s Item 19 Financial Performance Representations (2015 FDD) – Part 1 of 2
- Benjamin Franklin Plumbing is providing you with historical financial performance representations for Franchised Businesses that were open the entire two-year period indicated.
- If a Franchised Business was not open for the entire two-year period indicated, Benjamin Franklin Plumbing did not include its results in the financial performance representations.
- Benjamin Franklin Plumbing is also providing you with historical rebate information of all the Franchised Businesses that took advantage of BuyMax services and were open during the same two-year period.
- The use of BuyMax services is voluntary and not a requirement of Benjamin Franklin Plumbing franchisees. Franchisees who did not utilize BuyMax services were excluded from the historical rebate information.
- You should consider that many Benjamin Franklin franchises are Conversion Franchises and have been operating for many years before becoming a franchise. A new franchisee’s individual financial results may differ from the results stated in this financial performance representation.
- The information contained in this Item has not been audited nor has it otherwise been prepared by an independent accountant.
- Some franchisees purchase and operate their Franchised Business across multiple territories. The information provided represents the experience of franchisees across all territories in which they conducted operations during the period.
- This Item does not include any Affiliate-Owned Businesses.
Explanatory Notes for Table 1 – Statement of Same Store Net Sales for Franchised Business Territories for Fiscal Years Ended December 31, 2011 through December 31, 2014
- Same store sales for Franchised Business Territories are based on Net Sales.
- Net Sales is defined as all revenue received by a Franchisee for the performance of all services and the sale of all products from or related to the Franchised Business (including revenues received for performing commercial services) less sales taxes, refunds to customers, discounts, payments to subcontractors, and permit costs revenue related to the Franchised Business.
- A Franchised Business’s Net Sales are obtained from individual financial packages submitted to the franchisor on a monthly basis. These financial packages include profit and loss statements with sales data for the franchisor to calculate franchise fees.
- Franchise fees are calculated on Net Sales. Net Sales are captured in electronic work papers and are the basis for this historic financial performance representation.
- Occasionally, franchisees fail to report. In such circumstances, estimates based on other financial records provided by non-reporting franchisees, such as required daily sales reports, are employed. None of these estimates have a material impact on the total amounts reported below.
- Benjamin Franklin Plumbing reasonably relies on this data and believes it to be true and correct. However, the franchisor has not audited this data and cannot therefore provide any further assurance as to its accuracy or completeness.
- Number of Franchised Business Territories. The numbers in this column reflect the territories of all the Franchised Businesses that were open during the full two-year (i.e. 24 month) period indicated.
- For the 24-month period ending December 31, 2012, 221 Franchised Business Territories were in operation.
- For the 24-month period ending December 31, 2013, 236 Franchised Business Territories were in operation.
- For the 24-month period ending December 31, 2014, 224 Franchised Business Territories were in operation.
- Excluded from these numbers of Franchised Businesses and from the reported results were Franchised Businesses that were open and operating during only a part (but not the entirety) of the 24-month period.
- For the 24-month periods ended, respectively, December 31, 2012, December 31, 2013, and December 31, 2014, 237, 276, and 269 Franchised Businesses Territories were open and operating.
- In some cases, a Franchised Business may have increased or decreased its territory during the period. In such cases, all territories are counted.
- A franchisee’s Franchised Business may consist of multiple Franchised Business Territories.
- Annual Total Net Sales. The numbers in this column reflect all Net Sales for franchisees that were open for the periods described above, and include any territory in which such franchisee operated during any portion of the periods.
- Net Sales may include sales in Open Territory, that is, territory that has not been awarded to a franchisee.
Table 1 – Statement of Same Store Net Sales for Franchised Business Territories for Fiscal Years Ended December 31, 2011 through December 31, 2014