BASKIN-ROBBINS 12/1/2002 14 Pacella Park Dr., P.O. Box 317 Randolph, MA 02368-0317 Contact: Mr. Don Larose Tel: (800) 777-9983 Fax: (781) 961-4020 E-mail: email@example.com Franchised Units: Company-owned Units: Total Units:
4,500 0 4,500
ITEM 19. EARNINGS CLAIMS Introduction One question you are probably asking yourself is, "How much money can I expect to earn as a Dunkin' Donuts,Baskin-Robbins and/or Togo’s Franchisee?" There is no simple, definitive answer to that question. There are many variables that make it impossible to predict future results with any certainty. For these reasons, ADQSR does not project sales, costs or profits of stores or networks it may offer you. No employee or representative of ADQSR is authorized to make such projections. ADQSR cannot predictwhether or to what extent you may succeed at any particular location. We do provide, however, certain sales and costs statistics as described below. You and your accountant should make an independent evaluation and build a business plan for the opportunity you are pursuing, taking into account such independent information as may be available at the time. While we are not able to review or comment onyour plan, the plan should help you in making your investment decision, and in getting underway if you enter the ADQSR system. The average new franchisee generally finds the first 12 months of operation of each store to be the most challenging. There are numerous factors that may affect a store’s sales and costs. Below are notes regarding some of those factors. There may be some factors not listedbelow. We encourage you to discuss our business with existing franchisees and to retain a competent attorney and accountant to assist you in evaluating our franchise(s). If you are considering purchasing an existing unit from ADQSR, we may provide historical financial statements for the unit, if they are available. A NEW FRANCHISEE’S FINANCIAL RESULTS ARE LIKELY TO DIFFER FROM THE RESULTS STATEDHEREIN. THE SALES AND COST INFORMATION PROVIDED HEREIN IS NOT INTENDED AS A REPRESENTATION OF THE LEVEL WHICH YOU ARE LIKELY TO ACHIEVE IN THE FUTURE. THE FIGURES STATED HEREIN RELATE TO SALES AND CERTAIN COSTS ONLY AND NOT PROFITS. SALES AND THE COSTS PROVIDED ARE NOT NECESSARILY INDICATIVE OF PROFITS.
SUBSTANTIATION OF THE DATA USED IN PREPARING THESE SALESAND COST CLAIMS ARE AVAILABLE FOR INSPECTION BY YOU AT OUR HEADQUARTERS IN RANDOLPH, MA, UPON REASONABLE REQUEST AND NOTICE. CAUTION: SOME STORES HAVE HAD SALES AND COSTS IN THESE AMOUNTS. THERE IS NO ASSURANCE YOU WILL DO AS WELL. IF YOU RELY UPON OUR FIGURES, YOU MUST ACCEPT THE RISK OF NOT DOING AS WELL.
ANNUALIZED SALES DATA FOR THE PERIOD JULY 1, 2001 to JUNE 30, 2002 BASKIN-ROBBINS SINGLEBRAND STORES
Avg. Sales 290,554 299,165 294,471 186,906 236,090 266,777 233,840 264,603 344,587 314,764 % at or Above Avg. (1) 45% 42% 46% 46% 44% 51% 45% 48% 43% 44% 25
Percentile Benchmarks(2) 50th 75th 279,939 278,585 286,898 178,740 221,694 267,625 221,970 258,565 330,019 299,030 342,698 349,785 330,078 228,308 279,563 308,454 283,230 303,442 392,557 361,120
100th 861,181 527,109561,469 382,311 467,417 667,912 667,912 529,113 861,181 861,181
National Market Baltimore/Washington/ Philadelphia New England, Upstate New York, NY Metro Market Southeast Midwest Central Total Market Market Frontier Golden West Total Market
220,435 242,224 241,556 130,393 176,023 195,429 169,957 214,759 274,909 247,921
(1) "% at or above Avg." means the percentage of stores reporting whohave actually attained or surpassed the stated average. (2) "Percentile" means a value on a scale of one hundred that indicates the percent of distribution that is equal to or below it. Therefore, the above Percentile Benchmarks are used as follows: 25th percentile means that 25% of the stores included in the data are less than (or equal to) the stated amount and 75% are greater (or equal to) the...
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