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Refreshing disclosure of performance

Bahama Buck’s provides an informative summary on their webs ite of average gross sales along with average percentage costs. I wish all franchisors provided more transparency likes this. I do believe it would benefit the franchisor and speed up the sales process. You wouldn’t buy a stock security on a U.S. exchange without financial disclosures, would you?

source: https://bahamabucks.com/franchise/index.html#process (scroll down to the “Numbers” section to view these details):


$424,170 AVERAGE GROSS SALES

…and gaining. Despite a sluggish economy, Bahama Buck’s average store sales have increased 101.95% since 2008. We’ve got something people crave and we’re the absolute best at it.

25.14% AVERAGE FOOD & PAPER

Impressed? So are our competitors. Simple, focused inventory allows us to enjoy the lowest food and paper cost in the industry. Now that’s impressive.

21.13% AVERAGE NET PROFIT*

Dare to compare. Clearly one of the highest profit margins in the frozen dessert industry. In fact, it’s nearly twice as high as the QSR industry.

Please Note: The averages are based on a 52-week annual period from January through December 2016 as published in Item 19 of our 2017 Federal Disclosure Document. Average Unit Sales Volume for stores in the top 25% is $621,736; stores in the top 50% is $537,410; stores in the top 75% is $481,202; and all stores combined is $424,170. *The audited corporate locations do not pay the 6% Royalty Fee, but the value has been included in the expenses to reach the posted 21.13% average net profit (Corporate locations average net profit were 27.13%). Other financial performance representations are contained in Item 19 of the Franchise Disclosure Document. A new franchisee’s results may differ from the above represented performance. There is no assurance that you will do as well and you must accept that risk.

*This is not an offer to sell you a franchise. An offering is made by prospectus only in the form of a Franchise Disclosure Document (FDD).

About Ryan Knoll

Attorney and advisor with an interest in franchising. Feel free to email me comments and questions on the "Contact Us" page.

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