Buff City Soap does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets. However, if you are purchasing an existing BCS Makery, the company may provide you with the actual records of that BCS Makery.
However, using the Franchisor income statement we can deduce from look at the income statement line item “Franchise Revenue” / “Brand Fund Contributions”
Royalty Fee: 6% of Gross Sales
In 2020 franchise revenues were $960,000
Estimated Total Franchise Sales: $16 million
Estimated Average Franchise Sales: $767,5000
- First, based on a midpoint investment of $694,600 with estimated profits of $66,630 at a 10% profit margin it would take about 11 years to recoup your investment.
- Second, based on a midpoint investment of $694,600 with estimated profits of $104,190 at a 15% profit margin it would take about 8 years to recoup your investment.
- Third, based on a midpoint investment of $694,600 with estimated profits of $133,260 at a 20% profit margin it would take about 6 years to recoup your investment.
This is just an estimated sales based on the franchisor’s income statement and can vary greatly depending on the length that the particular franchise location has been open and how well the business is run.