The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
Shown below are unaudited annual Total Gross Revenue, Cost of Labor as a percentage of Gross Revenue, and EBIDTA for 2018, 2019 and 2020 from our affiliate Green Restoration Group, LLC located in Orange, CT at 206A Boston Post Rd.
You should carefully review the attached explanatory notes. Written substantiation for the financial performance representation will be made available to you upon reasonable request.
Your individual results may differ. There is no assurance that you will sell or earn as much as our affiliate’s Orange, CT Location. Your costs are also likely to differ from the figures presented.
You should conduct an independent investigation of the costs you could incur in operating your franchised business.
Category |
For Reporting Period ending December 31, 2018 |
For Reporting Period ending December 31, 2019 |
For Reporting Period ending December 31, 2020 |
Total Gross Revenues1 |
$1,614,503 |
$1,362,258 |
$1,183,593 |
Cost of Labor as a percentage of Gross Revenue2 |
2% |
3% |
6% |
EBIDTA3 |
$301,517 |
$160,061 |
$543,485 |
Imputed Royalty4 |
$145,305 |
$122,5603 |
$106,523 |
Imputed Total Marketing Cost5 |
$0 |
$0 |
$23,425* |
Imputed Call Center Fee6,7 |
$20,872 - $31,307 |
$20,872 - $31,307 |
$20,872 - $31,307 |
Adjusted EBIDTA8 |
$124,905 - $135,340 |
$6,151 - $16,583 |
$378,029 - $413,537 |
- “Total Gross Revenues” is all revenue collected for the reporting period.
- “Cost of Labor as a percentage of Gross Revenue” is all payroll, payroll taxes and payments to sub-contractors for the reporting period divided into “Total Gross Revenue” for the reporting period and multiplied by 100.
- “EBIDTA” is the net profit for the reporting period plus interest paid, depreciation, company income taxes and amortization for the reporting period.
- “Imputed Royalty” Royalty is defined in the Franchise Agreement as nine percent (9%) of Total Revenue, so it is calculated by multiplying “Total Gross Revenue” for each Reporting Period by nine percent.
- “Imputed Total Marketing Cost” The Franchise Agreement mandates you spent a minimum of four precent (4%) on marking. This row shows the difference between what Green Restoration Group, LLC paid in the reporting period and what is required of a franchisee. Note, we do have a right under the Franchise Agreement to implement a National Advertising and Development Fund which will require you contribute three percent (3%) of your “Total Gross Revenue”. We have not included this figure as contributions from you into the National Advertising and Development Fund will count towards your four precent (4%) marketing requirement. This row only shows a figure when Green Restoration Group, LLC spent less the four percent (4%) that you will be required to spend as a franchisee.
- “Imputed Call Center Fee” is defined in the Franchise Agreement as $400 per week, which may increase up to $600 per week. It shows as a range between the lowest per reporting period ($400 / .019165) and the highest possible it can be raised to ($600 / .019165). Dividing a dollar amount by .019165 coverts the Dollar amount from weeks to years.
- This Call Center Fee will provide you with a service that should reduce you costs and efforts. Our affiliate in Orange, CT which the figures above are calculated did, not have the Call Center Service. We have not attempted to calculate the savings, and make no claims in regard to the potential amount of those savings, even though we expect you to have some.
- “Adjusted EBIDTA” is EBIDTA from the cart minus all Imputed figures on the chart.
*in 2020 Restoration Group, LLC paid $23,918 for all marketing expenses which is $23,426 less than the $46,344 required by the Franchise Agreement.
If you receive any other financial performance information or projections of your future income, you should report it to our management by contacting our Chief Executive Officer, Andrii Kawaii, 206A Boston Post Rd Orange CT 06477; telephone (203)919-4433; the Federal Trade Commission and any appropriate state regulatory agencies.