Bowie Barker

Data Based On: 1 Affiliate-Owned Store operating for the 12 months ending April 30, 2024.

* The financial performance data is based on one Affiliate-Owned Store. The average net income for a franchisee was calculated by taking the Affiliate's Gross Sales ($770,973), subtracting Cost of Goods Sold ($345,455), and then adjusting General Expenses. The original General Expenses ($314,895) were reduced by: $19,769 (excess Repairs & Maintenance, as only $1,800 annually is estimated as recurring for a franchisee), $13,448 (excess Management Salary, as $56,000 is allocated for a franchisee vs. $69,448 paid by affiliate), $16,376 (part-time medical benefits, removed for franchisee), and $5,813 (overtime/penalties, removed for franchisee). The total reduction in General Expenses was $55,406, resulting in adjusted General Expenses of $259,489. This yielded a profit of $166,029 before imputed fees. Finally, imputed Royalty Fees ($46,258) and Technology Fees ($12,000) were deducted, leading to an average net income of $107,771. For the 'low' profit estimate, starting with the average net income ($107,771), we assumed an additional $18,624 in marketing expenses (increasing from $19,925 to 5% of gross sales) and an additional $1,200 in recurring Repairs & Maintenance (from $1,800 to $3,000 annually), resulting in a low estimate of $87,947. For the 'high' profit estimate, starting with the average net income ($107,771), we assumed the franchisee fully manages the business, thus eliminating the allocated General Manager salary of $56,000, which results in a high estimate of $163,771.