In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for an Uptown Cheapskate franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for an Uptown Cheapskate franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the Uptown Cheapskate franchise opportunity
Section V – Presentation and analysis of Uptown Cheapskate’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- November 1, 2021 through October 31, 2022 average gross sales, cost of goods sold, gross profit, franchise royalty, administration, facility, marketing, sales expense, labor, total expenses, and net income for the 82 franchisees whose Uptown Cheapskate stores operated in the United States during the measurement period
Section VI – Key ratios, comparables, computations, and analyses for the Uptown Cheapskate franchise opportunity (exclusive content for Platinum subscribers)
Section I – Uptown Cheapskate Franchise Costs
- Uptown Cheapskate franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $25,000
- Travel and Living Expenses While Training: $2,000 to $5,000
- Real Estate Deposit: $5,000 to $20,000
- Real Estate Improvements: $15,000 to $160,000
- Exterior Signs and Graphics: $12,400 to $16,800
- Interior Signs: $4,000 to $6,000
- Trade Fixtures: $75,250 to $86,000
- Computers, Scanners, Cash Drawers, Printers, Credit Card Machines, Routers, Cables, iPads, TV, etc.: $15,486
- BaseCamp Software Suite: $10,000
- Security Camera System: $1,800 to $6,000
- Grand Opening Promotion: $20,000 to $25,000
- Opening Inventory: $75,000 to $85,000
- Incorporation Documents: $500 to $1,000
- Loan Fees: $3,500 to $8,500
- Licenses, Permits, Utility Deposits: $1,000 to $2,000
- Supplies, Hangers, Miscellaneous Expenses: $21,000 to $24,600
- Pre-Opening Working Capital: $48,000 to $60,600
- Additional Working Capital for 3 Months: $42,000 to $54,000
- Total Estimated Uptown Cheapskate Franchise Costs: $376,936 to $610,986
Section II – Uptown Cheapskate’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Uptown Cheapskate’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Franchise Fee: $20,000 to $25,000
- Royalty: 5% of gross sales
- Marketing Fund: 0.5% of gross sales
- Advertising Expenditure: the greater of 5% of gross sales or $2,000 per month (in addition to grand opening, reopening, relocation and transfer store expenditures, and Marketing Fund fee)
- Cooperative Fees: 4% of gross sales with a monthly minimum of $2,000 and maximum of $5,000
Section III – Number of Franchised and Company-Owned Uptown Cheapskate Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 79
- Net Change: +12
2021
- Outlets at the Start of the Year: 79
- Outlets at the End of the Year: 83
- Net Change: +4
2022
- Outlets at the Start of the Year: 83
- Outlets at the End of the Year: 99
- Net Change: +16
Company-Owned
2020
- Outlets at the Start of the Year: 5
- Outlets at the End of the Year: 6
- Net Change: +1
2021
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 13
- Net Change: +7
2022
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 13
- Outlets at the End of the Year: 14
- Net Change: +1
Section IV – News Updates on the Uptown Cheapskate Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Uptown Cheapskate Franchise (Item 19, 2023 FDD)
- The following charts were compiled from unaudited financial reports (using the accrual basis) submitted to Uptown Cheapskate from 82 franchisees whose stores operated in the United States during the period of November 1, 2021 through October 31, 2022. This reporting period varies from Uptown Cheapskate’s fiscal year end of December 31, 2021.
- 113 stores were in operation during that period, and Uptown Cheapskate received adequate reports from 82 that were in operation for the entire period, and stores that were open for less than 12 months were excluded from this report.
- Stores have been separated into quartiles by Gross Sales.
- Uptown Cheapskate’s study of financial data provided by franchisees measured its franchisees’ performance in a variety of different markets.
- These financial statements have been prepared without an audit.
Part 1 – Average Profit and Loss Statements, by Quartile
First Quartile 2022 (Consisting of 21 Units Operating from November 1, 2021 through October 31, 2022)
Gross Sales: $1,854,411 (100%)
Cost of Goods Sold: $688,836 (37%)
Gross Profit: $1,165,575 (63%)
Expenses
- Franchise Royalty: $82,083 (4.4%)
- Administration: $61,980 (3.3%)
- Facility: $158,792 (8.6%)
- Marketing: $83,324 (4.5%)
- Sales Expense: $10,464 (0.6%)
- Labor: $372,922 (20.1%)
- Total Expenses: $769,565 (41.5%)
Net Income: $396,010 (21.4%)
Second Quartile 2022 (Consisting of 20 Units Operating from November 1, 2021 through October 31, 2022)
Gross Sales: $1,301,394 (100%)
Cost of Goods Sold: $475,511 (37%)
Gross Profit: $825,883 (63%)
Expenses
- Franchise Royalty: $57,064 (4.4%)
- Administration: $49,156 (3.8%)
- Facility: $138,230 (10.6%)
- Marketing: $68,122 (5.2%)
- Sales Expense: $7,128 (0.5%)
- Labor: $270,263 (20.8%)
- Total Expenses: $589,963 (45.3%)
Net Income: $235,920 (18.1%)
Third Quartile 2022 (Consisting of 20 Units Operating from November 1, 2021 through October 31, 2022)
Gross Sales: $1,054,119 (100%)
Cost of Goods Sold: $375,241 (36%)
Gross Profit: $678,878 (64%)
Expenses
- Franchise Royalty: $47,547 (4.5%)
- Administration: $43,326 (4.1%)
- Facility: $134,725 (12.8%)
- Marketing: $64,974 (6.2%)
- Sales Expense: $6,444 (0.6%)
- Labor: $214,743 (20.4%)
- Total Expenses: $511,759 (48.5%)
Net Income: $167,119 (15.9%)
Fourth Quartile 2022 (Consisting of 21 Units Operating from November 1, 2021 through October 31, 2022)
Gross Sales: $751,648 (100%)
Cost of Goods Sold: $270,019 (36%)
Gross Profit: $481,629 (64%)
Expenses
- Franchise Royalty: $33,619 (4.5%)
- Administration: $34,365 (4.6%)
- Facility: $111,224 (14.8%)
- Marketing: $50,816 (6.8%)
- Sales Expense: $6,133 (0.8%)
- Labor: $170,265 (22.7%)
- Total Expenses: $406,421 (54.1%)
Net Income: $75,208 (10.0%)
Average of Four Quartiles in 2022
Gross Sales: $1,240,393 (100.0%)
Cost of Goods Sold: $452,402 (36.5%)
Gross Profit: $787,991 (63.5%)
Expenses
- Franchise Royalty: $55,078 (4.4%)
- Administration: $47,207 (3.8%)
- Facility: $135,743 (10.9%)
- Marketing: $66,809 (5.4%)
- Sales Expense: $7,542 (0.6%)
- Labor: $257,048 (20.7%)
- Total Expenses: $569,427 (45.9%)
Net Income: $218,564 (17.6%)
- Gross Sales means all revenue from the franchise location and online sales, except sales or use tax.
- Cost of Goods includes the costs and expenses related to retail items. This includes shrinkage (loss of product due to theft, donations, etc.) and markdowns.
- Gross Profit means Gross Sales minus Cost of Goods Sold.
- Franchise Royalty numbers do not equal 5% of gross sales because of discount for multiple stores and the fact that charges for one month are paid in the following month.
- Administration includes insurance, credit card processing fees, bad debt, bank charges, checking account fees, equipment lease, equipment repairs, licenses, dues, office supplies, payroll processing fees, property tax, security, training expense, and travel expense.
- Facility includes rent, repairs, ancillary charges, and utilities.
- Sales Expense includes bags, tags, and related supplies.
- Labor includes wages, taxes, and benefits, but does not including any compensation received by owner.
- Some stores have earned these amounts. Your individual results may differ. There is no assurance that you will earn as much.
Section VI – Uptown Cheapskate Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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