How Much Can I Make?


How Much Can I Make?

The FTC (Federal Trade Commission) has specific franchise rules that permit a franchisor to provide information about the actual or potential financial performance of its franchised and/or affiliated outlets if there is reasonable basis for the information and the information is included in the FDD (Franchise Disclosure Document). Financial performance information is provided in the ITEM 19 and represents possible performance based on the dates and figures below.

Of 55 Stores represented in the 2015 calendar year results above, 30 Stores were below the average Operating Income shown in the table. Of the 55 Stores represented in the 2015 calendar year results above, 25 Stores were operating above the average Operating Income. The royalty fees included in Operating Expenses are paid at the average rate of 2.8% of Gross Sales, based on a reduced royalty fee for retail sales granted to existing franchisees. The royalty fee percentage payable on retail sales revenue was decreased if certain retail sales criteria were met.

All 55 Stores Reporting

Category
2014 Average Sales
2014 Percentage of Revenue
2015 Average Sales
2015 Percentage of Revenue
Retail Revenue
$170,262
15.40%
$184,213
13.80%
Rental Revenue
$933,823
84.60%
$1,149,446
86.20%
Total Revenue
$1,104,085
100%
$1,333,659
100%
Cost of Goods Sold
$406,429
35.80%
$486,044
36.40%
Operating Expenses
$494,863
44.80%
$581,602
43.60%
Operating Income$202,79418.40%$266,01320%

Top 20 Stores Reporting

Category
2014 Average Sales
2014 Percentage of Revenue
2015 Average Sales
2015 Percentage of Revenue
Retail Revenue
$242,890
15.50%
$251,902
13.90%
Rental Revenue
1,323,661
84.50%
$1,557,487
86.10%
Total Revenue
$1,566,551
100%
$1,809,389
100%
Cost of Goods Sold
$557,761
35.60%
$641,093
35.40%
Operating Expenses
$621,397
39.70%
$719,645
39.80%
Operating Income$387,39324.70%$448,65124.80%

The figures above reflect averages for the top 20 RNR Custom Wheels & Tires
Stores that reported during the 2015 calendar year and opened in 2012 or prior and have been opened for at least 24 months. These averages are based on a 52-week annual period from January 2, 2015 through December 31, 2015. Of the 20 stores, 8 (40%) had higher total revenue and 11 (55%) had higher operating income.

A new franchise owners’s results may differ from the represented performance. There is no assurance you’ll do as well. If you rely upon our figures, you must accept the risk of not doing as well.

RNR Larry Carrico
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