Are the gross sales figures for V60's Store in the Azal Coffee FDD audited?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
fer. There is no assurance that you'll earn as much.**
For purposes of this Item 19, the actual gross sales includes the total revenue of V60's Store without deduction for Michigan's 6% sales tax and tips remitted to employees, but are otherwise net of other discounts for rewards, comps, returns, and employee meals. Sales tax in your state may be different.
The figures in the table were prepared by management of V60 and were not audited. V60 does not pay us royalty, marketing, or technology fees. Except as otherwise disclosed in this Item, we do not believe there are any material financial and operational characteristics of the V60's outlet that are reasonably anticipated to differ materially from future operational franchise outlets. Written substantiation for the financial performance representation will be made available to you on reasonable request.
Gross sales do not reflect the actual potential income of a Store and should not be relied on in calculating profitability. There are a number of fixed and variable costs associated with a Store, not all of which are reflected in the information above and that vary among individual Stores.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 47–48)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, the gross sales figures for V60's Store were not audited. The FDD includes historical monthly gross sales information from January 1, 2024, through May 31, 2024, for V60's Store in Dearborn, Michigan. These figures, which were prepared by the management of V60, are unaudited.
Specifically, the gross sales figures include the total revenue of V60's Store without deducting Michigan's 6% sales tax and tips remitted to employees. However, they are net of other discounts for rewards, comps, returns, and employee meals. The FDD emphasizes that these gross sales figures should not be relied upon to calculate profitability, as they do not reflect the actual potential income of a store and do not account for various fixed and variable costs.
Prospective Azal Coffee franchisees should be aware that the provided financial performance representation is based on unaudited data. While the FDD offers this data as an example, it explicitly states that individual results may differ and there is no assurance of earning as much. It is crucial for potential franchisees to consult with financial advisors to review the provided table and estimate additional expenses they may incur in establishing and operating a store. Furthermore, written substantiation for the financial performance representation will be made available upon reasonable request.