What were the gross sales for the Crown Gold Exchange location in Rancho Santa Margarita, CA?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
| 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, CA | $2,334,860 |
| Estimated Royalty Fee | $12,000 |
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 Rancho Santa Margarita, CA location had gross sales of $5,000,771 for the period of January 1, 2023 to December 31, 2023. This data is based on the financial performance of company-owned outlets, specifically WAM Gold, LLC, which Crown Gold Exchange states do not differ materially from future franchise-owned outlets. The FDD clarifies that "Gross Sales" means the revenue from sales of goods or services, less sales tax, discounts, and returns.
It is important to note that this figure represents gross sales only. The FDD explicitly states that this Item 19 does not include any operating expenses. A prospective Crown Gold Exchange franchisee would need to account for costs such as goods, labor, advertising, and rent to determine net income. The FDD also mentions an estimated royalty fee of $12,000 for the Rancho Santa Margarita location, even though the affiliate-owned businesses do not actually pay royalties. This provides an estimate of what a franchisee might expect to pay in royalties.
The FDD also includes a disclaimer that individual results may vary, and there is no assurance that a franchisee will achieve the same level of sales or earnings. The document advises prospective franchisees that written substantiation of the information will be made available upon reasonable request. Furthermore, the FDD urges franchisees to report any financial performance information or projections not included in Item 19 to the franchisor and relevant regulatory agencies.
While the financial performance representation provides insight into potential revenue, prospective franchisees should conduct their own thorough financial analysis, considering all potential expenses and market conditions, and consult with financial advisors to assess the viability of a Crown Gold Exchange franchise.