Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk: Our Latest Views on the Range of Gross Sales by Quartile for Big Apple Bagels and My Favorite Muffin Stores (2015 FDD)

by Franchise Chatter on April 16, 2015

in Bakery Franchise, FDD Talk 2017: Food Franchises, Franchise Earnings



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Big Apple Bagels

Highlights of Big Apple Bagels’ Item 19 Financial Performance Representations (2015 FDD) – Part 1 of 2

  • The franchisee will engage in the business of owning and operating a bagel store which has the capacity for production, retail and wholesale distribution, and on-site consumption of bagels and muffins, and retail sale of coffees, cream cheese, and (if you sign the SweetDuet Addendum) frozen yogurt.
  • The information included in Tables 1 and 2 below is based on reports submitted to Big Apple Bagels by 78 fully-reporting franchised BAB Stores located in the United States that were operated for the entire 2014 Fiscal Year.
  • The figures in Table 1 are for the 60 BAB Stores whose Primary Identifying Brand is “Big Apple Bagels.”
  • The figures in Table 2 are for the 18 BAB Stores whose Primary Identifying Brand is “My Favorite Muffin.”
  • The Franchised Stores include 76 BAB Production Stores and 2 BAB Satellite Stores (collectively, the “Franchised Stores”).
  • The Tables do not include any company-owned or affiliate-owned stores. Any franchised BAB Store that either opened or closed during the 2014 Fiscal Year, or failed to submit all 52 weeks of reporting during the 2014 Fiscal Year, has been excluded from the information contained in these Tables.
  • The information was collected by the franchisor, but has not been independently audited or verified.
  • “Gross Revenues” is defined in the Franchise Agreement as the entire amount of all gross sales and business receipts, including direct or indirect barter transactions, catering accounts, proceeds of business interruption insurance policies, wholesale accounts (both on and off premises) arising out of the operation of the Store, or through or by means of the business conducted in connection therewith, whether for cash or credit, but excluding:  (1) sales, use, or service taxes collected from customers, and paid to the appropriate taxing authority; and (2) all bona fide customer refunds and approved rebates, discounts, and allowances.
  • “Quartile” refers to the relative performance of the Franchised Stores. Therefore, the “1st  Quartile” refers to the top 25% performing Franchised Stores, based on Gross Revenues, the “2nd Quartile” refers to the next highest 25% performing Franchised Stores, and so on.
  • The Tables combine the Gross Revenues of all of the Franchised Stores for the 2014 Fiscal Year, and lists the high and low end of the Gross Revenues Range for each Quartile.
  • For Big Apple Bagels, there are 15 Franchised Stores in the 1st Quartile, 15 Franchised Stores in the 2nd Quartile, 15 Franchised Stores in the 3rd Quartile, and 15 Franchised Stores in the 4th Quartile.
  • For My Favorite Muffin, there are 5 Franchised Stores in the 1st Quartile, 4 Franchised Stores in the 2nd Quartile, 5 Franchised Stores in the 3rd Quartile, and 4 Franchised Stores in the 4th Quartile.

Table 1 – Gross Revenues of BAB Franchised Stores By Quartile for 2014 Fiscal Year – Big Apple Bagels

  • The Portage, Michigan store shown in Table 3 (see Part 2) is included in Table 1 below for its Big Apple Bagels sales exclusive of SweetDuet.

1st Quartile



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