How does Floyds 99 define 'EBITDA' in Chart 2?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2 Chart 2: "EBITDA" means earnings before interest, taxes, depreciation and amortization. The results of three franchised Barbershops were excluded from the information in Chart 2 because the franchisee who operates these three Barbershops did not report financial results for these Barbershops in compliance with our standards and specifications.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 49–53)
What This Means (2025 FDD)
According to Floyds 99's 2025 Franchise Disclosure Document, Chart 2 presents the Mature Franchised Barbershops Operating Profit (EBITDA) for the years 2022, 2023, and 2024. The FDD defines EBITDA as earnings before interest, taxes, depreciation, and amortization.
It's important to note that the financial results of three franchised Floyds 99 Barbershops were excluded from Chart 2 because the franchisee operating those locations did not report their financial results in compliance with Floyds 99's standards and specifications. This exclusion highlights the importance of franchisees adhering to the franchisor's reporting requirements to ensure accurate and reliable financial data.
For a prospective franchisee, understanding EBITDA is crucial as it provides a snapshot of the operational profitability of a Floyds 99 franchise before considering the impact of financing, accounting, and tax-related factors. Reviewing Chart 2, while keeping in mind the excluded data, can offer insights into the potential profitability of mature franchised barbershops. However, it is essential to remember the disclaimer that individual results may vary and there is no guarantee of earning as much as the figures presented.