Earning Potential for an RNR Tire Franchisee

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.

61 Store Avg. Reporting 2016 *
Category Avg. Sales % of Revenue
Retail Revenue $178,142 12.50%
Rental Revenue $1,250,489 87.50%
Total Revenue $1,428,164 100%
Cost of Goods Sold $531,292 37.20%
Operating Expenses $623,837 43.70%
Operating Income $272,174 19.1%
All 55 Stores Reporting 2015 *
Category Avg. Sales % of Revenue
Retail Revenue $184,213 13.80%
Rental Revenue $1,149,446 86.20%
Total Revenue $1,333,659 100%
Cost of Goods Sold $486,044 36.40%
Operating Expenses $581,602 43.60%
Operating Income $266,013 20%
All 55 Stores Reporting 2014 *
Category Avg. Sales % of Revenue
Retail Revenue $170,262 15.40%
Rental Revenue $933,823 84.60%
Total Revenue $1,104,085 100%
Cost of Goods Sold $406,429 35.80%
Operating Expenses $494,863 44.80%
Operating Income $202,794 18.40%

Of 61 Stores represented in the 2016 calendar year results above, 31 Stores were below the average Operating Income shown in the table. Of the 61 Stores represented in the 2016 calendar year results above, 30 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.

Top 20 Stores Reporting 2016 **
Category Avg. Sales % of Revenue
Retail Revenue $298,202 15.30%
Rental Revenue $1,657,966 84.70%
Total Revenue $1,954,745 100%
Cost of Goods Sold $730,178 37.40%
Operating Expenses $750,507 38.40%
Operating Income $471,437 24.20%
Top 20 Stores Reporting 2015 **
Category Avg. Sales % of Revenue
Retail Revenue $251,902 13.90%
Rental Revenue $1,557,487 86.10%
Total Revenue $1,809,389 100%
Cost of Goods Sold $641,093 35.40%
Operating Expenses $719,645 39.80%
Operating Income $448,651 24.80%
Top 20 Stores Reporting 2014 **
Category Avg. Sales % of Revenue
Retail Revenue $242,890 15.50%
Rental Revenue 1,323,661 84.50%
Total Revenue $1,566,551 100%
Cost of Goods Sold $557,761 35.60%
Operating Expenses $621,397 39.70%
Operating Income $387,393 24.70%

The figures above reflect averages for the 20 top performing stores (33%) of the 61 stores reporting that opened in 2014 or prior and have been open at least 24 months. These averages are based on a 52-week annual period from January 1, 2016 through December 31, 2016. Of these 20 stores, 10 (50%) had higher total revenue and 9 (45%) had higher operating income.

RNR Larry Carrico

Testimonial

* Figures above reflect averages for the 61 stores reporting that opened in 2014 or prior and have been open at least 24 months. These averages are based on a 52-week annual period from January 1, 2016 through December 31, 2016. Of these stores, 29 (48%) had higher total revenue and 30 (49%) had higher operating income. A new franchise owner’s results may differ from the presented 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 Tire Express. All rights reserved.

** Figures above reflect averages for the 20 top performing stores (33%) of the 61 stores reporting that opened in 2014 or prior and have been open at least 24 months. These averages are based on a 52-week annual period from January 1, 2016 through December 31, 2016. Of these 20 stores, 10 (50%) had higher total revenue and 9 (45%) had higher operating income. A new franchise owner’s results may differ from the presented 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 Tire Express. All rights reserved.

How Much Can I Make?

How Much Can I Make?