Why was the dataset for the second Ella Cafe location excluded from the financial performance representation?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
The representations made in this Item 19 is based on historical financial performance of our affiliate Ella Café Inc's operation of a Coffee House located in Plantation, Florida. As of December 31, 2023 there were two corporate locations that were open and operating. The following chart reflects historical data concerning the Plantation, Florida Coffee House's operation for the full twelve-month period for the years 2018, 2019, 2020, 2021, 2022, and 2023. The second location was not open and operating for the full measurement period of at least twelve months and therefore, the dataset for the second location was excluded.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 45–47)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the financial performance representation is based on the historical data from one of its affiliate-owned coffee houses in Plantation, Florida. As of December 31, 2023, Ella Cafe had two corporate locations open. However, the financial performance representation in Item 19 only includes data from the Plantation, Florida location for the full twelve-month period for the years 2018 through 2023.
The reason the second location's data was excluded is because it was not open and operating for the entire measurement period of at least twelve months. This is a common practice in franchising, as financial performance representations need to be based on a consistent and reliable set of data to be useful for prospective franchisees.
By excluding the second location, Ella Cafe aims to provide a more accurate and representative picture of the potential financial performance that a franchisee might expect. This ensures that prospective franchisees are not misled by data from a location that may not have reached its full potential or stabilized its operations. Prospective franchisees should keep in mind that past performance is not a guarantee of future results, and their individual results may differ.