Does Bang Cookies have any Franchise Outlets for which financial data is available?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
The financial information was not prepared on a basis consistent with generally accepted accounting principles. We do not have any Franchise Outlets. Data for our Company Owned Outlet is based on information reported to us by our affiliate. 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.
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 financial performance representations provided are based on data from Company Owned Outlets, not Franchise Outlets. The FDD explicitly states that Bang Cookies does not have any Franchise Outlets. Therefore, the financial data presented, including information on gross revenue, prime costs, and franchisee expenses, reflects the performance of Company Owned Outlets only.
Specifically, the financial data includes details from two Company Owned Outlets: a 275 square foot outlet and an 800 square foot outlet. The 275 square foot outlet had a Gross Revenue of $700,343.56, while the 800 square foot outlet had a Gross Revenue of $457,457.06. The document also provides a breakdown of prime costs, including COGS (Cost of Goods Sold) and payroll, as well as franchisee expenses such as Royalty Fees (6% of Gross Revenue) and Brand Fund contributions (2% of Gross Revenue) for these Company Owned Outlets.
Because the data is from Company Owned Outlets, prospective franchisees should be cautious when using this information to project their potential earnings. The performance of a franchised location can vary significantly due to factors such as location, management, and local market conditions. Bang Cookies includes a disclaimer stating, "Some Outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much."
Given that Bang Cookies does not provide financial performance data for Franchise Outlets in the 2024 FDD, it is crucial for potential franchisees to conduct their own due diligence. This includes researching the market, creating a detailed business plan, and potentially speaking with existing Bang Cookies franchisees (if any exist outside of the company owned locations) to gather more insights into the potential financial performance of a franchise location. It would be prudent to ask Bang Cookies for any additional data or insights they might have, even if not included in Item 19, to better assess the potential financial viability of a franchise.