What is the estimated royalty fee for the Crown Gold Exchange location in Redlands, CA?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
in California.
2023 Gross Sales Per Location:
| Location | Sales |
|---|---|
| Riverside, CA | $2,797,519.00 |
| Estimated Royalty Fee | $12,000 |
| Chino, CA | $2,851,632.00 |
| Estimated Royalty Fee | $12,000 |
| Redlands, CA | $2,969,156.00 |
| Estimated Royalty Fee | $12,000 |
| Rancho Santa Margarita, CA | $5,000,771 |
| Estimated Royalty Fee | $12,000 |
| Hemet, CA | $2,794,677 |
| Estimated Royalty Fee | $12,000 |
| Palm Desert, CA | $2,817,185 |
| Estimated Royalty Fee | $12,000 |
| Ontario, C |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 33–35)
What This Means (2024 FDD)
According to Crown Gold Exchange's 2024 Franchise Disclosure Document, the estimated royalty fee for the Redlands, CA location is $12,000. This figure is based on the financial performance of a company-owned outlet in Redlands, CA, during the period from January 1, 2023, to December 31, 2023. It's important to note that this is an estimated royalty fee, as the company-owned outlets do not actually pay royalties. The franchisor is providing an estimate of what the royalty expense would have been.
It is important for prospective franchisees to understand that this is not a projection of future performance, and the actual royalty fees may vary. The FDD clearly states that individual results may differ, and there is no assurance that a franchisee will achieve the same sales or earnings. The financial performance representation does not include any operating expenses, such as cost of goods sold, labor, advertising, or rent, which would need to be considered to determine net income.
Crown Gold Exchange provides this financial information based on the performance of seven company-owned outlets in California. The franchisor emphasizes that they do not make any representations about a franchisee's future financial performance, except for what is included in Item 19 of the FDD. If a prospective franchisee receives any other financial performance information or projections, they are advised to report it to the franchisor's management and the Federal Trade Commission.
Prospective franchisees should carefully review the assumptions and limitations outlined in Item 19 and conduct their own independent investigation to determine the potential financial performance of a Crown Gold Exchange franchise. This includes considering local market conditions, competition, and their own management capabilities. It is also advisable to seek professional advice from an accountant or financial advisor before making any investment decisions.