How Much Money Can I Make?

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.

As of December 27, 2015, we had 94 stores open in the U.S. These 94 stores were composed of 79 “traditional” stores (in-line or free standing open 7 days per week) and 15 “non-traditional” stores (downtown, mall, or other location open less than 7 days per week). Of the 79 traditional stores, 71 were operational for the full year. The charts below cover only those 71 traditional restaurants that were in operation for the entire year.

The information in the charts below was prepared from sales information provided to us by franchisees. The franchisees’ sales information is not audited. You should consider that this information gives no weight to specific locations, types of operators, investment cost, or market conditions. Sales may differ widely from one location to another, without respect to their geographic region. You must make your own investigation into the likely sales and costs in your specific location and region.

A prospective franchisee who is purchasing the assets of an existing restaurant should review the actual financial results of the store(s) being purchased. Prospective franchisees for non-traditional stores should not rely on the figures below, as that type of store may experience different results.

Average Unit Sales

Franchisee owned stores for the 52 weeks ending December 27, 2015

Group (2)Number of
Stores (1)
Average Net
Sales
Number and Percent of Stores Within Sample That Met Or Exceeded Group Average Net Sales 
All Stores71$416,0952940.8%
No.Percent
Top 20%14$668,474535.7%
Top 40%28$574,2991035.7%
Top 60%42$513,1551939.6%
Top 80%56$466,3272137.5%

(1)  The number of restaurants represents “traditional” Robeks stores open for the full fiscal year ending December 27, 2015.

(2)  Group refers to the relative performance of the specified “traditional” stores.  For example, the “Top 20%” refers to the top 20% performing stores based on sales, the “Top 40%” refers to the top 40% performing stores based on sales and so on.

(3) The number of stores reporting represents the stores in the Group which submitted period profit and loss statements during the year ending December 27, 2015. Not all stores reporting reported for all twelve periods during the year.

(4) Average costs are calculated on average gross sales, which are Net Sales plus the discount value of any coupon, voucher, or other allowance that we authorize at the time franchisee redeems the customer’s coupon, voucher, or allowance.

ADDITIONAL NOTES:

Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

The financial performance representation figures do not reflect all costs and expenses that must be deducted from the gross revenues or gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your Robeks Store. Franchisees or former franchisees listed on Exhibit H may be one source of information.

You are likely to achieve results that are different, possibly significantly and adversely, from the results shown above. Many factors, including location of the business, management capabilities, local market conditions, competition, and other factors are unique to each business and may significantly impact the financial performance of the business.

The actual results included in this table should not be considered as the actual or probable performance results that you should expect through the operation of your business. We do not make any promises or representations of any kind that you will achieve any particular results or level of sales or profitability.

You are responsible for developing your own business plan for your business. We encourage you to consult with your own accounting, business, and legal advisors in doing so. In developing the business plan, you are cautioned to make necessary allowance for changes in financial results to income, expenses, or both, that may result from operation of your business in different geographic areas or new market areas, or during periods of, or in areas suffering from, economic downturns, inflation, unemployment, or other negative economic influences.

Written substantiation for the financial performance representation will be made available to the prospective franchisee upon reasonable request. Except as disclosed in this Item 19, we do not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets.

We also do not authorize our employees or representatives to make such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any financial performance information or projections of your future income, you should report it to our management by contacting our President and Chief Financial Officer, David G. Rawnsley, c/o Robeks Franchise Corporation, 5220 Pacific Concourse Drive, Suite 395, Los Angeles, CA 90045, (310)727-0500, the Federal Trade Commission and the appropriate state regulatory agencies.

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