What is the difference between the average and median gross revenue for the middle 1/3 of Deka Lash studios?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
| Top 1/3 | Middle 1/3 | Bottom 1/3 | |
|---|---|---|---|
| Number of Studios | 37 | 36 | 36 |
| Average of Gross Revenue | $495,184 | $287,860 | $152,349 |
| Median of Gross Revenue | $458,763 | $278,672 | $162,457 |
| Number of Studios Which | 13 of 37 (35%) | 15 of 36 (42%) | 21 of 36 (58%) |
| Attained or Surpassed Average | |||
| Highest 5 Studio Revenues in Performance Segment | |||
| $ 795,220 | $ 358,241 | $ 226,592 | |
| $ 758,843 | $ 355,627 | $ 223,306 | |
| $ 758,433 | $ 351,747 | $ 219,967 | |
| $ 684,197 | $ 340,792 | $ 219,319 | |
| $ 599,102 | $ 339,459 | $ 219,312 | |
| Lowest 5 Studio Revenues in Performance Segment | |||
| $ 387,910 | $ 252,708 | $ 91,714 | |
| $ 385,286 | $ 240,931 | $ 73,330 | |
| $ 383,126 | $ 235,188 | $ 50,499 | |
| $ 379,655 | $ 233,466 | $ 38,827 | |
| $ 367,617 | $ 229,715 | $ 30,645 |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–57)
What This Means (2024 FDD)
According to Deka Lash's 2024 Franchise Disclosure Document, the average gross revenue for the middle 1/3 of studios is $287,860, while the median gross revenue is $278,672. This means the average revenue exceeds the median revenue by $9,188. This data is based on studios open and operating for at least 12 months as of December 31, 2023.
The financial performance representation includes data from 109 franchised locations. It is important to note that 42% of the 36 studios in the middle 1/3 attained or surpassed the average gross revenue for that segment. This indicates that more than half of the studios in this segment performed below the average.
The FDD also provides the highest and lowest five studio revenues within the middle 1/3 performance segment, ranging from $358,241 to $229,715. This range highlights the variability in performance among Deka Lash studios, even within the same performance segment. A prospective franchisee should consider these factors and conduct thorough due diligence to understand the potential financial performance of a Deka Lash franchise.
It is important to remember that the FDD states, "Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much." This underscores the risk involved and the need for careful planning and execution to achieve similar results.