What does 'Gross Rent' include in the context of the Better Blend financial performance representation?

According to Better Blend's 2024 Franchise Disclosure Document, 'Gross Rent' in the context of the financial performance representation includes the base rent and other costs paid to the landlord for the store premises, such as common area maintenance. This is an important factor for prospective franchisees to consider when evaluating the potential profitability of a Better Blend franchise, as it represents a recurring fixed cost. Understanding what is included in gross rent allows franchisees to accurately forecast their expenses.

Specifically, the financial performance representation in Item 19 of the FDD provides data on the average, highest, and lowest gross rent amounts for the three company-owned Better Blend locations during the full 12-month period from January 1, 2023, to December 31, 2023. The data shows that the highest gross rent was $37,714, representing 8% of sales, while the lowest was $17,248, representing 2% of sales. The average gross rent was $24,513, representing 4% of sales.

Prospective franchisees should carefully review the lease terms for their specific location to understand all costs associated with rent, including base rent, common area maintenance, and any other fees. Comparing these costs to the figures presented in the FDD can help franchisees assess the reasonableness of their rent expenses and project their potential profitability. It is important to note that these figures are based on the performance of company-owned locations and that individual results may vary.