For the 275 square foot Bang Cookies outlet, what was the total gross revenue in 2023?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
e offering and is therefore excluded. Our two remaining Company Owned Outlets are detailed below:
Table 1
| 275 square foot outlet | Total | %1 | |
|---|---|---|---|
| Income | |||
| Revenue Retail | $612,754.77 | ||
| Aggregators | $87,588.79 | ||
| Gross Revenue | $700,343.56 | ||
| Prime Costs | |||
| COGS | $154,075.59 | 22.00% | |
| Payroll | $148,168.49 | 21.16% | |
| Total Prime Costs | $302,244.08 | 43.16% | |
| Franchisee Expenses | |||
| Royalty Fee2 | $42,020.61 | 6% | |
| Brand Fund3 | $14,006.87 | 2% | |
| Net Before Rent & | Notes to Table: Footnote 1 - “%” represents the percentage of Gross Revenue. Footnote 2 - Royalty Fee is equal to 6% of Gross Revenue. Footnote 3 – Brand Fund is equal to 2% of Gross Revenue. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 50–53)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the 275 square foot company-owned outlet had a total gross revenue of $700,343.56 in 2023. This figure represents the sum of revenue from retail sales ($612,754.77) and sales through aggregators ($87,588.79). It's important to note that this data is based on a single company-owned outlet and may not be representative of the performance of a franchised location. Bang Cookies does not have any Franchise Outlets. The financial information was not prepared on a basis consistent with generally accepted accounting principles. The information in this analysis has not been audited, is based on historical financial data and is not a forecast or projection of future financial performance.
For a prospective franchisee, this information provides a glimpse into the potential revenue that a Bang Cookies outlet of similar size could generate. However, it is crucial to understand the context and limitations of this data. The FDD explicitly states that individual results may differ and there is no assurance that a franchisee will earn as much. Factors such as location, market conditions, and the franchisee's operational capabilities can significantly impact financial performance.
The FDD also outlines various expenses that a franchisee will incur, such as cost of goods sold (COGS), payroll, royalty fees, and brand fund contributions. In the case of the 275 square foot outlet, COGS accounted for 22.00% of gross revenue ($154,075.59), while payroll represented 21.16% ($148,168.49). Additionally, the franchisee would be responsible for a royalty fee of 6% of gross revenue ($42,020.61) and a brand fund contribution of 2% ($14,006.87). These expenses, along with other operational costs like rent and utilities, will impact the franchisee's net profit.
Prospective franchisees should carefully review the entire Item 19 of the FDD and conduct their own independent research to assess the viability of a Bang Cookies franchise. This includes analyzing the market potential in their desired location, understanding the competitive landscape, and developing a comprehensive business plan. It is also advisable to speak with existing Bang Cookies franchisees to gain insights into their experiences and financial performance.