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

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

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

Section III – Number of franchised and company-owned Pokéworks 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 – News updates on the Pokéworks franchise opportunity

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

• 2021 average, median, highest, and lowest gross sales for the 5 company-owned Pokéworks restaurants open and operating generally according to standard procedures for 12 full months of 2021

• 2021 average, median, highest, and lowest gross sales for the 44 franchised Pokéworks restaurants open and operating generally according to standard procedures in January through December 2021

Section VI – Key ratios, comparables, computations, and analyses for the Pokéworks franchise opportunity (exclusive content for Platinum subscribers)

Section I – Pokéworks Franchise Costs

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

• Initial Franchise Fee:  $35,000
• Architectural Design and Permits:  $7,100 to $22,000
• Construction and Remodeling:  $215,000 to $286,300
• Initial Lease Deposit:  $5,000 to $20,000
• Furniture and Fixtures:  $17,964 to $33,036
• Equipment:  $31,800 to $63,593
• Business Licenses and Permits:  $1,000 to $4,000
• Inventory:  $5,000 to $10,000
• Signs:  $5,500 to $20,280
• Pre-Opening Marketing:  $15,000
• Insurance:  $500 to $3,000
• Computer and POS System:  $3,900 to $7,000
• Employee Wages:  $3,000 to $10,000
• Legal and Accounting Fees:  $1,000 to $4,000
• Additional Funds (First Three Months):  $25,000 to $70,000
• Training Expenses:  $3,000 to $7,500
• Total Estimated Pokéworks Franchise C0sts:  $374,764 to $610,709

Section II – Pokéworks’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

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

• Initial Franchise Fee:  $25,000 to $35,000
• Royalty Fee:  6% of Gross Sales
• Marketing Fund Contribution:  1.5% of Gross Sales
• Advertising Cooperative:  up to 2.0% of Gross Sales

Section III – Number of Franchised and Company-Owned Pokéworks Outlets

Franchised

2019

• Outlets at the Start of the Year:  21
• Outlets at the End of the Year:  40
• Net Change:  +19

2020

• Outlets at the Start of the Year:  40
• Outlets at the End of the Year:  49
• Net Change:  +9

2021

• Outlets at the Start of the Year:  49
• Outlets at the End of the Year:  53
• Net Change:  +4

Company-Owned

2019

• Outlets at the Start of the Year:  11
• Outlets at the End of the Year:  8
• Net Change:  -3

2020

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  8
• Net Change:  0

2021

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  8
• Net Change:  0

Section IV – News Updates on the Pokéworks Franchise

• Pokéworks Announces Continued National Expansion

• Pokéworks Fuels International Expansion

• Pokéworks Unveils Best-in-Class Digital and Rewards Experience

• Pokéworks Sourcing Eggs From Cage-Free Hens

• Poké Restaurants Riding Wave of Fandom to Achieve Fast Growth

• Pokéworks Ranks No. 378 on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Pokéworks Franchise (Item 19, 2022 FDD)

• In 2021, most Pokéworks Restaurants operated according to standard procedures, which include on-premises dining, take-out counter service, and delivery service.

• As of December 31, 2021, there were a total of 53 franchised Pokéworks Restaurants. Of these, 44 franchised Restaurants were open and operating from January 2021 to December 2021.

• The tables below show the performance of the open company-owned and franchised Restaurants for comparable periods in 2021. The tables show the number of Pokéworks Restaurants that were open and operating.

• Some open Pokéworks Restaurants offered limited seating in compliance with social distancing requirements. Other Pokéworks Restaurants were closed or had their operations severely restricted by local requirements, mostly to take out and delivery services.

• The performance information does not present franchise fees, selling, general and administrative expenses, occupancy costs such as utilities and rent, taxes, insurance, and other expenses. Net profit is not presented.

Part 1 – Financial Performance of Certain Company-Owned Locations

• Part 1 includes the data for the company-owned Pokéworks Restaurants open and operating generally according to standard procedures for 12 full months of 2021.

• Number of Company-Owned Restaurants:  5
• Average Gross Sales:  $1,005,953
• Highest Gross Sales in Range:  $1,927,729
• Lowest Gross Sales in Range:  $506,064
• Median Gross Sales:  $846,009

Part 2 – Financial Performance of Certain Franchised Locations

• Part 2 includes the data for the franchised Pokéworks Restaurants open and operating generally according to standard procedures in January through December 2021.

• Number of Franchised Restaurants:  44
• Average Gross Sales:  $887,611
• Highest Gross Sales in Range:  $2,075,891
• Lowest Gross Sales in Range:  $267,542
• Median Gross Sales:  $766,547

• Of these franchised Restaurants, 15 franchised Restaurants (or 34%) met or exceeded the average gross sales set forth in Part 1 for January to December 2021. Average gross sales for these franchised Restaurants during this period was $1,172,028.

• “Average Gross Sales” is defined as total Gross Sales (all revenue generated by the Pokéworks Restaurant, not including any sales tax collected) less discounts taken at the point of sale, such as the value of promotional and complimentary products during the specified period.

• Pokéworks does not provide information regarding costs like store level operating expenses, Royalty Fees, and Marketing Fund Contributions. The Financial Performance Representations (Earnings Claims) figures in this Item 19 do not reflect operating expenses or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

• Some outlets have sold the amounts stated. Your individual results may differ. There is no assurance you will sell as much.

Section VI – Pokéworks Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️