In this FDD Talk post, you’ll learn the following:

• Section I – Estimated initial investment (franchise costs) for a Beef Jerky Experience franchise, based on Item 7 of the company’s 2022 FDD

• Section II – Initial franchise fee, royalty fee, and marketing fee for a Beef Jerky Experience franchise, based on Items 5 and 6 of the company’s 2022 FDD

• Section III – Number of franchised and company-owned Beef Jerky Experience outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

• Section IV – Presentation and analysis of Beef Jerky Experience’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

• 2019, 2020, and 2021 average, highest, and lowest gross product sales; average gross product cost; average gross margin dollars; and average gross margin percentage for the Beef Jerky Experience stores owned and operated by the franchisor’s affiliates for at least 1 year

• 2019, 2020, and 2021 average, median, highest, and lowest gross product sales for the Beef Jerky Experience stores owned and operated by franchisees for at least 1 year

• 2019, 2020, and 2021 average, median, highest, and lowest gross product sales for the top third, middle third, and bottom third of the Beef Jerky Experience stores owned and operated by the franchisor’s affiliates for at least 1 year

• 2019, 2020, and 2021 average, median, highest, and lowest gross product sales for the top third, middle third, and bottom third of the Beef Jerky Experience stores owned and operated by franchisees for at least 1 year

• 2019, 2020, and 2021 average and median monthly weighted average sales for the Beef Jerky Experience satellites owned and operated by franchisees for as little as 1 month but not to exceed 6 months

• Section V – Key ratios, comparables, computations, and analyses for the Beef Jerky Experience franchise opportunity (exclusive content for Platinum subscribers)

Section I – Beef Jerky Experience Franchise Costs

• Beef Jerky Experience franchise costs, based on Item 7 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,900
• Rent for 3 Months:  $7,500 to $40,000
• Leasehold Improvements – Materials:  $3,500 to $35,000
• Leasehold Improvements – Demo/Space Rehab:  $10,000 to $50,000
• Leasehold Improvements – Architect:  $2,500 to $6,000
• Equipment, Furnishings, and Fixtures:  $60,000 to $106,000
• Signage:  $5,000 to $12,500
• Initial Inventory:  $30,000 to $50,000
• Security Deposits:  $4,000 to $10,000
• Insurance for 3 Months:  $750 to $3,000
• Kickstart Assets:  $5,000
• Travel and Living Expenses While Training:  $1,000 to $2,000
• POS/Back Office Computer Equipment and Supplies:  $4,500 to $7,500
• Permits/Licenses:  $100 to $2,500
• Professional Fees:  $1,000 to $2,500
• Additional Funds for 3 Months:  $10,000 to $20,000
• Total Estimated Beef Jerky Experience Franchise Costs:  $194,750 to $401,900

Section II – Beef Jerky Experience’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Beef Jerky Experience’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:

• Initial Franchise Fee:  $49,900
• Royalty:  6% of Gross Sales
• Brand and Technology Fee:  2% of Gross Sales

Section III – Number of Franchised and Company-Owned Beef Jerky Experience Outlets

Franchised

2019

• Outlets at the Start of the Year:  99
• Outlets at the End of the Year:  95
• Net Change:  -4

2020

• Outlets at the Start of the Year:  95
• Outlets at the End of the Year:  89
• Net Change:  -6

2021

• Outlets at the Start of the Year:  89
• Outlets at the End of the Year:  91
• Net Change:  +2

Company-Owned

2019

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  6
• Net Change:  0

2020

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  6
• Net Change:  0

2021

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  6
• Net Change:  0

Section IV – Financial Performance Representations (Average Revenues and/or Profits) for the Beef Jerky Experience Franchise (Item 19, 2022 FDD)

• The franchise is for the operation of a business under the “Beef Jerky Experience” name which is a specialty retail store that features a variety of jerky products, sausages and smoked meats, sauces, rubs, seasonings, marinades, jams, butters, jellies, peanuts, candies, cheeses, and other similar foods.

• The following tables represent information for Beef Jerky Experience’s past 3 fiscal years ending October 31.

• In Part 1, Beef Jerky Experience provides the average gross sales, average gross product cost, average gross product profit, and average gross product margin achieved by non-franchised Stores owned and operated by Beef Jerky Experience’s Affiliates for at least 1 year.

• In Part 2, Beef Jerky Experience has listed only the average gross product sales achieved by Franchised Stores owned and operated by its franchisees for at least 1 year.

• In Part 3, Beef Jerky Experience provides additional breakdown detail for the Affiliated Stores in the form of 3 tiers. This provides a high, mid, and low perspective on the average gross product sales results of the Affiliated Stores. Other than with respect to the length of time that an Affiliated Store has been in operation, there are no material differences in the operation of an Affiliated Store as compared to a Franchised Store.

• In Part 4, Beef Jerky Experience provides additional breakdown detail for the Franchised Stores operated by its franchisees for at least 1 year. This provides a high, mid, and low perspective on the average gross product sales results of the Franchised Stores.

• Your sales and gross product margins may vary depending on a number of factors, including the location of your Store, pricing strategies, and how you operate your business.

• Gross Margin means total sales less cost of goods sold.

• Some outlets have earned these amounts. Your individual results may differ. There is no assurance that you’ll earn as much.

• Many Beef Jerky Experience Store owners utilize various revenue streams including but not limited to satellite, festivals, loyalty marketing, online sales, etc.

• The figures used in this statement are average gross sales, average gross cost, average gross profit, and average gross margin only.

• Beef Jerky Experience does not supply or provide cost information; however, the cost of goods to Affiliated Stores and the cost of goods to Franchised Stores is the same. Beef Jerky Experience’s franchisees will not incur a greater cost of goods than its Affiliated Stores. There are no product cost differences between Affiliated Stores and Franchised Stores.

• The Affiliated Stores do not pay royalties, but do pay advertising fees. There are no other unique costs to franchisees that are not borne by Affiliated Stores.

• Net income will vary from Store to Store depending upon factors such as rental or real estate costs, costs of goods sold, labor costs, and other costs relating to the operation of the Store.

• The sales revenues shown in this chart reflect the historic experience of Beef Jerky Experience’s Affiliated Stores and Franchised Stores; they should not be considered as the actual or potential sales that you will realize. Results for a new franchisee may differ from the results stated in this financial performance representation.

• Beef Jerky Experience offered substantially the same services to the Stores described in this Item 19. These Stores offered substantially the same products and services to the public as you will. The Stores report gross sales information to Beef Jerky Experience based upon a uniform reporting system.

• The information presented below has not been audited.

Part 1 – 2019, 2020, and 2021 Average Results of Affiliated Stores

2019

• Number of Stores:  6
• Average Gross Product Sales:  $923,481
• Average Gross Product Cost:  $443,271 (48% of gross product sales)
• Average Gross Margin Dollars:  $480,210
• Average Gross Margin Percentage:  52%
• Highest Gross Product Sales:  $1,340,224
• Lowest Gross Product Sales:  $536,688

2020

• Number of Stores:  6
• Average Gross Product Sales:  $919,704
• Average Gross Product Cost:  $423,064 (46% of gross product sales)
• Average Gross Margin Dollars:  $496,640
• Average Gross Margin Percentage:  54%
• Highest Gross Product Sales:  $1,392,460
• Lowest Gross Product Sales:  $533,131

2021

• Number of Stores:  6
• Average Gross Product Sales:  $1,228,132
• Average Gross Product Cost:  $552,659 (45% of gross product sales)
• Average Gross Margin Dollars:  $675,472
• Average Gross Margin Percentage:  55%
• Highest Gross Product Sales:  $2,163,473
• Lowest Gross Product Sales:  $718,343

Part 2 – 2019, 2020, and 2021 Average Results of Franchised Stores

2019

• Number of Stores:  77
• Average Gross Product Sales:  $433,802
• Median Gross Product Sales:  $390,565
• Highest Gross Product Sales:  $1,181,343
• Lowest Gross Product Sales:  $158,623

2020

• Number of Stores:  78
• Average Gross Product Sales:  $360,796
• Median Gross Product Sales:  $323,135
• Highest Gross Product Sales:  $1,028,809
• Lowest Gross Product Sales:  $100,234

2021

• Number of Stores:  79
• Average Gross Product Sales:  $488,160
• Median Gross Product Sales:  $424,774
• Highest Gross Product Sales:  $1,358,073
• Lowest Gross Product Sales:  $154,152

Part 3 – 2019, 2020, and 2021 Additional Detail of Average Results of Affiliated Stores

2019

High

• Number of Stores:  2
• Average Gross Product Sales:  $1,211,218
• Median Gross Product Sales:  $1,211,218
• Highest Gross Product Sales:  $1,340,224
• Lowest Gross Product Sales:  $1,082,211

Mid

• Number of Stores:  2
• Average Gross Product Sales:  $973,300
• Median Gross Product Sales:  $973,300
• Highest Gross Product Sales:  $1,040,683
• Lowest Gross Product Sales:  $905,917

Low

• Number of Stores:  2
• Average Gross Product Sales:  $585,925
• Median Gross Product Sales:  $585,925
• Highest Gross Product Sales:  $635,161
• Lowest Gross Product Sales:  $536,688

2020

High

• Number of Stores:  2
• Average Gross Product Sales:  $1,207,078
• Median Gross Product Sales:  $1,207,078
• Highest Gross Product Sales:  $1,392,460
• Lowest Gross Product Sales:  $1,021,695

Mid

• Number of Stores:  2
• Average Gross Product Sales:  $957,258
• Median Gross Product Sales:  $957,258
• Highest Gross Product Sales:  $1,018,383
• Lowest Gross Product Sales:  $896,132

Low

• Number of Stores:  2
• Average Gross Product Sales:  $594,777
• Median Gross Product Sales:  $594,777
• Highest Gross Product Sales:  $656,422
• Lowest Gross Product Sales:  $533,131

2021

High

• Number of Stores:  2
• Average Gross Product Sales:  $1,718,109
• Median Gross Product Sales:  $1,718,109
• Highest Gross Product Sales:  $2,163,473
• Lowest Gross Product Sales:  $1,272,744

Mid

• Number of Stores:  2
• Average Gross Product Sales:  $1,178,746
• Median Gross Product Sales:  $1,178,746
• Highest Gross Product Sales:  $1,206,844
• Lowest Gross Product Sales:  $1,150,648

Low

• Number of Stores:  2
• Average Gross Product Sales:  $787,541
• Median Gross Product Sales:  $787,541
• Highest Gross Product Sales:  $856,738
• Lowest Gross Product Sales:  $718,343

Part 4 – 2019, 2020, and 2021 Additional Detail of Average Results of Franchised Stores

2019

High

• Number of Stores:  26
• Average Gross Product Sales:  $637,934
• Median Gross Product Sales:  $581,617
• Highest Gross Product Sales:  $1,181,343
• Lowest Gross Product Sales:  $473,370

Mid

• Number of Stores:  25
• Average Gross Product Sales:  $394,933
• Median Gross Product Sales:  $390,565
• Highest Gross Product Sales:  $471,548
• Lowest Gross Product Sales:  $325,499

Low

• Number of Stores:  26
• Average Gross Product Sales:  $267,043
• Median Gross Product Sales:  $272,408
• Highest Gross Product Sales:  $323,393
• Lowest Gross Product Sales:  $158,623

2020

High

• Number of Stores:  26
• Average Gross Product Sales:  $564,160
• Median Gross Product Sales:  $558,378
• Highest Gross Product Sales:  $1,028,809
• Lowest Gross Product Sales:  $403,990

Mid

• Number of Stores:  26
• Average Gross Product Sales:  $321,014
• Median Gross Product Sales:  $323,135
• Highest Gross Product Sales:  $387,862
• Lowest Gross Product Sales:  $258,620

Low

• Number of Stores:  26
• Average Gross Product Sales:  $197,215
• Median Gross Product Sales:  $199,963
• Highest Gross Product Sales:  $257,701
• Lowest Gross Product Sales:  $100,234

2021

High

• Number of Stores:  26
• Average Gross Product Sales:  $776,860
• Median Gross Product Sales:  $676,279
• Highest Gross Product Sales:  $1,358,073
• Lowest Gross Product Sales:  $535,102

Mid

• Number of Stores:  27
• Average Gross Product Sales:  $433,005
• Median Gross Product Sales:  $424,774
• Highest Gross Product Sales:  $516,911
• Lowest Gross Product Sales:  $366,769

Low

• Number of Stores:  26
• Average Gross Product Sales:  $256,737
• Median Gross Product Sales:  $268,954
• Highest Gross Product Sales:  $347,519
• Lowest Gross Product Sales:  $154,152

Part 5 – 2019, 2020, and 2021 Weighted Average Sales of Satellite Stores

• Beef Jerky Experience franchisees that operate a satellite store are normally opened during a high tourist/holiday season. The satellite locations are tied to the franchisee’s permanent location and are open for as little as 1 month but not to exceed 6 months. These locations are normally located in high traffic seasonal venues such as local malls.

• The table below shows monthly weighted average sales for each year (2019, 2020, and 2021) based on the total number of locations, the number of months the locations were open, and the total sales. (Calculation – each location divided by months open; total average sales for each location divided by total number of satellites in that year).

• This table also includes the sales based on 3 months and 6 months.

2019

• Number of Satellites:  15
• Median Monthly Weighted Average Sales:  $29,729.62
• Monthly Weighted Average Sales:  $29,555.99
• Monthly Weighted Average Sales x 3 Months:  $88,667.97
• Monthly Weighted Average Sales x 6 Months:  $177,335.94

2020

• Number of Satellites:  20
• Median Monthly Weighted Average Sales:  $27,568.24
• Monthly Weighted Average Sales:  $31,969.66
• Monthly Weighted Average Sales x 3 Months:  $95,908.98
• Monthly Weighted Average Sales x 6 Months:  $191,817.96

2021

• Number of Satellites:  20
• Median Monthly Weighted Average Sales:  $30,783.92
• Monthly Weighted Average Sales:  $30,028.38
• Monthly Weighted Average Sales x 3 Months:  $90,085.14
• Monthly Weighted Average Sales x 6 Months:  $180,170.28

Section V – Beef Jerky Experience Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️