What is the median Gross Rent amount for Better Blend company-owned locations?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
law). | | | MUDA: § 7 | |
| Financial Performance of All Company-Owned Locations Open | ||||||||
|---|---|---|---|---|---|---|---|---|
| During the Full 12-Month Period from January 1, 2023 – December 31, 2023 | ||||||||
| Average | % of Sales | % of Sales | Amount | % of Sales | Amount | % of Sales | ||
| Sales | $690,706 | $1,015,459 | $581,370 | $475,289 | ||||
| Cost of Goods Sold | $227,427 | 33% | $332,155 | 33% | $220,801 | 38% | $129,324 | 27% |
| Supplies & Materials | $11,988 | 2% | $17,624 | 2% | $10,090 | 2% | $8,249 | 2% |
| Labor Cost | $157,048 | 23% | $230,888 | 23% | $132,188 | 23% | $108,068 | 23% |
| Gross Rent | $24,513 Highest | 4% Lowest | $17,248 Median | 2% # (%) Above Avg | $18,577 | 3% | $37,714 | 8% |
| Sales | $969,856 | $401,341 | $514,867 | 1 (33%) | ||||
| Net Profit (EB |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 38–40)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the median Gross Rent for company-owned locations during the full 12-month period from January 1, 2023, to December 31, 2023, was $18,577. This figure is based on the financial performance of the three Better Blend businesses operated by its affiliates during that calendar year. These locations include Florence, KY, downtown Cincinnati, OH, and Clifton, OH.
Gross Rent is defined as the base rent plus any other costs, such as common area maintenance, paid to the landlord of the store premises. The median provides a middle-ground figure, which can be more representative than an average if there are significant outliers in the rent amounts paid by different locations. In this case, the highest Gross Rent was $37,714, while the lowest was $17,248.
For a prospective franchisee, understanding the range and median of gross rent is crucial for financial planning. Rent is a significant fixed cost, and variations can impact profitability. The FDD indicates that the median Gross Rent accounted for 3% of sales. Franchisees should consider local real estate costs and negotiate lease terms carefully, as these can significantly affect their bottom line.
It is important to note that these figures are based on company-owned locations and may not be directly applicable to franchised locations. Factors such as location, size, and lease terms can vary widely. Better Blend states that individual results may differ, and there is no assurance that a franchisee will achieve similar sales or earnings.