Income

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  who address is 8 The Green, Suite B, Dover, DE 19901.

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 Dover, DE 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

 

  1. “Total Gross Revenues” is all revenue collected for the reporting period. 
  2. “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. 
  3. “EBIDTA” is the net profit for the reporting period plus interest paid, depreciation,  company income taxes and amortization for the reporting period.  
  4. “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. 
  5. “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.  
  6. “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. 
  7. This Call Center Fee will provide you with a service that should reduce you costs and  efforts. Our affiliate in Dover, DE 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.  
  8. “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, 8 The Green, Suite B, Dover, DE 19901; telephone (302) 203-9013; the Federal  Trade Commission and any appropriate state regulatory agencies.