From how many Company Owned Outlets are the financial results derived for Crown Gold Exchange?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
The following chart contains selected financial performance information for seven Crown Gold businesses owned by our affiliate, WAM Gold, LLC that were open for this time period. These locations are all in California.
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 financial performance representations are derived from seven company-owned outlets. These outlets are owned by Crown Gold Exchange's affiliate, WAM Gold, LLC, and are all located in California. The financial results presented cover the period from January 1, 2023, to December 31, 2023.
The specific locations included in the financial performance representation are Riverside, Chino, Redlands, Rancho Santa Margarita, Hemet, Palm Desert, and Ontario. The FDD emphasizes that these company-owned outlets do not materially differ from future franchise-owned outlets, suggesting that the financial data could be indicative of potential franchisee performance.
It is important to note that while the financial results include gross sales for each location, they do not include operating expenses. A prospective Crown Gold Exchange franchisee would need to account for costs such as cost of goods sold, labor, advertising, and rent to understand their potential net income. The document also mentions an estimated royalty fee of $12,000 per year, which is factored into the financial representation as an expenditure the affiliate would have incurred had they been a franchisee.