What is included in the '% Mktg' calculation for Big Frog Custom T Shirts More?

According to Big Frog Custom T Shirts More's 2024 Franchise Disclosure Document, the '% Mktg' calculation represents the total money spent on advertising and promotion, including the National Ad Fund paid to Big Frog Custom T Shirts More, as a percentage of Gross Revenue. This metric is one of several Key Performance Indicators (KPIs) that Big Frog Custom T Shirts More uses to assess the financial performance of its franchised stores. The data is compiled from information submitted through the Big Frog Point of Sale system.

For a prospective franchisee, understanding the components of the '% Mktg' calculation is crucial for budgeting and financial planning. It highlights the importance of both local advertising efforts and contributions to the national advertising fund. By tracking this percentage, franchisees can gauge the effectiveness of their marketing spend and make informed decisions about allocating resources to different promotional activities.

The FDD also provides historical financial performance data, including '% Mktg' for various stores. For example, in the Second Quartile data, Store 105, which was open for 49 months, had a Gross Revenue of $682,408.73 and a '% Mktg' of 1.30%. Store 087, open for 71 months, had a Gross Revenue of $640,117.20 and a '% Mktg' of 1.40%. Store 054, open for 120 months, had a Gross Revenue of $631,748.06 and a '% Mktg' of 1.59%. These figures offer a benchmark for franchisees to compare their own marketing expenses against similar-performing stores in the Big Frog Custom T Shirts More system.

It is important to note that while Big Frog Custom T Shirts More believes the data presented is accurate, they have not independently verified or audited the information. Franchisees should also be aware that their individual results may differ, and there is no assurance that they will achieve the same financial performance as the stores presented in the FDD.