Who owns the seven Crown Gold Exchange businesses for which financial information is provided?
Crown_Gold_Exchange Franchise · 2024 FDDAnswer from 2024 FDD Document
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1/01/2023 – 12/31/2023 Financial Results
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.
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, CA | $2,334,860 |
| Estimated Royalty Fee | $12,000 |
Notes:
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 data presented in Item 19 pertains to seven Crown Gold Exchange businesses owned by WAM Gold, LLC, an affiliate of Crown Gold Exchange. These seven locations, for which financial results from January 1, 2023, to December 31, 2023, are provided, are all located in California.
The specific locations include Riverside, Chino, Redlands, Ontario, Hemet, Palm Desert, and Rancho Santa Margarita. The FDD specifies the gross sales for each location during the stated period, ranging from $2,334,860 in Ontario to $5,000,771 in Rancho Santa Margarita. The document also includes an estimated royalty fee of $12,000 per location, which is what the affiliate would have paid had they been franchisees.
It is important to note that these are historic financial performance representations and not projections of future performance. The FDD also clarifies that the financial results do not include any operating expenses associated with running the affiliate-owned businesses. A prospective franchisee would need to account for costs such as goods, labor, advertising, and rent to understand their potential net income. Crown Gold Exchange emphasizes that individual results may vary, and there is no assurance that a franchisee will achieve the same sales or earnings as the affiliate-owned locations.