Hen Salad Chick Franchise Prices, Charges, Revenues, Earnings (2022 Evaluate)

On this unique Franchise Chatter FDD Discuss publish, you’ll be taught the next:

Part I – Estimated preliminary funding (franchise prices) for a Hen Salad Chick franchise, primarily based on Merchandise 7 of the corporate’s 2022 FDD

Part II – Preliminary franchise payment, royalty payment, and advertising and marketing payment for a Hen Salad Chick franchise, primarily based on Objects 5 and 6 of the corporate’s 2022 FDD

Part III – Variety of franchised and company-owned Hen Salad Chick shops firstly of the 12 months and the top of the 12 months for 2019, 2020, and 2021, primarily based on Merchandise 20 of the corporate’s 2022 FDD

Part IV – Information updates on the Hen Salad Chick franchise alternative

Part V – Presentation and evaluation of Hen Salad Chick’s monetary efficiency representations (common revenues and/or income), primarily based on Merchandise 19 of the corporate’s 2022 FDD, together with info on the:

• 2021 common, median, highest, and lowest product sales for the 130 franchised and 44 affiliate-owned (individually acknowledged) Hen Salad Chick eating places in america that have been open and working throughout all of 2021

• 2021 common product sales, price of products bought, payroll & associated prices, working bills, non-controllable bills, occupancy prices, native advertising and marketing expense, model fund payment, EBITDA, royalty payment, and adjusted EBITDA for the 44 affiliate-owned Hen Salad Chick eating places in america that have been open and working throughout all of 2021

Part VI – Key ratios, comparables, computations, and analyses for the Hen Salad Chick franchise alternative (unique content material for Platinum subscribers)

Part I – Hen Salad Chick Franchise Prices

• Hen Salad Chick franchise prices, primarily based on Merchandise 7 of the corporate’s 2022 FDD:

• Preliminary Franchisee Payment:  $50,000
• Grand Opening Advertising Payment:  $10,000
• Lease (1 month) and Safety Deposit:  $6,000 to $11,000
• Leasehold Enhancements:  $400,000 to $500,000
• Furnishings, Fixtures, and Gear:  $175,000 to $225,000
• Décor Package deal (wall artwork, desk coverings, decals, window remedies):  $15,000 to $20,000
• Branded Merchandise:  $9,000 to $10,000
• Stock:  $11,800 to $12,800
• Signage:  $12,000 to $25,000
• Drive-Through Package deal (drive-thru solely):  $20,000 to $30,000
• Laptop Gear and Software program:  $18,000 to $20,000
• Permits and Licenses:  $500 to $2,500
• Insurance coverage (6 months):  $2,500 to $3,500
• Coaching (transportation, lodging, and many others. for 3 folks):  $2,500 to $5,000
• Different Deposits and Pay as you go Bills:  $0 to $5,500
• Skilled Charges (legal professional, architect, and many others.):  $10,000 to $20,000
• Further Funds for 3 Months:  $20,000 to $30,000
• Whole Hen Salad Chick Franchise Prices (all places apart from drive-thru places): $742,300 to $950,300
• Whole Hen Salad Chick Franchise Prices (drive-thru places solely): $762,300 to $980,300

Part II – Hen Salad Chick’s Preliminary Franchise Payment, Royalty Payment, and Advertising Payment

• Hen Salad Chick’s preliminary franchise payment, royalty payment, and advertising and marketing payment, primarily based on Objects 5 and 6 of the corporate’s 2022 FDD:

• Franchise Payment:  $50,000 for first location; $45,000 for extra places
• Persevering with Royalty:  5% of Gross Gross sales (however at the very least $600 on the fifth and twentieth of every month)
• Promoting Contribution:  presently, 2% of Gross Gross sales

Part III – Variety of Franchised and Firm-Owned Hen Salad Chick Shops

Franchised

2019

• Shops on the Begin of the Yr:  74
• Shops on the Finish of the Yr:  102
• Internet Change:  +28

2020

• Shops on the Begin of the Yr:  102
• Shops on the Finish of the Yr:  131
• Internet Change:  +29

2021

• Shops on the Begin of the Yr:  131
• Shops on the Finish of the Yr:  153
• Internet Change:  +22

Firm-Owned

2019

• Shops on the Begin of the Yr:  31
• Shops on the Finish of the Yr:  42
• Internet Change:  +11

2020

• Shops on the Begin of the Yr:  42
• Shops on the Finish of the Yr:  45
• Internet Change:  +3

2021

• Shops on the Begin of the Yr:  45
• Shops on the Finish of the Yr:  52
• Internet Change:  +7

Part IV – Information Updates on the Hen Salad Chick Franchise

Part V – Monetary Efficiency Representations (Common Revenues and/or Earnings) for the Hen Salad Chick Franchise (Merchandise 19, 2022 FDD)

• This historic monetary efficiency illustration discloses the common, median, and excessive/low annual product sales of 130 franchised (Half 1) and 44 affiliate-owned (Half 2) Hen Salad Chick Eating places in america that have been open and working throughout all of 2021.

• All affiliate-owned Hen Salad Chick Eating places disclosed on this Merchandise 19 are owned and operated by Hen Salad Chick’s affiliate SSRG II, LLC.

• Of the 130 franchised Eating places, 3 have been operated throughout 2021 by Hen Salad Chick’s affiliate SSRG II, LLC regardless of being owned throughout 2021 by franchisees beneath separate Franchise Agreements.

• This monetary efficiency illustration doesn’t embrace the outcomes of 32 Hen Salad Chick Eating places:

• (1) 23 franchised Eating places and seven affiliate-owned Eating places that opened throughout 2021 (and subsequently weren’t open for the complete calendar 12 months);
• (2) 1 franchised Restaurant that completely closed throughout 2021 (and subsequently was not open for the complete calendar 12 months); and
• (3) 1 affiliate-owned Restaurant operated on a university campus in Alabama that isn’t open year-round.

• Moreover the annual product sales of the 130 franchised and 44 affiliate-owned Hen Salad Chick Eating places in america that have been open and working throughout all of 2021, this monetary efficiency illustration incorporates an precise common and median partial working monetary assertion for 2021 for the affiliate-owned and operated Hen Salad Chick Eating places (Half 3).

• Of the franchised and affiliate-owned Hen Salad Chick Eating places that have been open throughout all of 2021, many skilled to various levels non permanent closures, diminished working hours, or diminished or no dine-in capability as a result of COVID-19 restrictions. Hen Salad Chick has not modified any of the 2021 monetary efficiency info disclosed on this portion of Merchandise 19 to account for these disruptions.

• All the Hen Salad Chick Eating places (each franchised and affiliate-owned) whose info is included on this Merchandise 19 are each considerably just like each other by way of services and products provided and considerably just like the Hen Salad Chick Eating places for which Hen Salad Chick is providing franchises within the disclosure doc.

• Hen Salad Chick has not materially modified the Hen Salad Chick Restaurant franchise idea or enterprise mannequin as a result of COVID-19 pandemic.

• Hen Salad Chick obtained the product sales info for franchised Eating places from gross sales studies submitted by franchisees.

• “Gross Gross sales” is outlined as the quantity of all gross sales of meals, drinks, and companies by a Restaurant, together with off-premises or on-premises catering gross sales, much less relevant gross sales tax. All coupons and reductions are deducted and netted out from Gross Gross sales.

• Hen Salad Chick obtained the detailed Restaurant-level working info for affiliate-owned Eating places from SSRG II, LLC. Hen Salad Chick has not independently audited any info submitted to it.

• The precise common, median, and excessive/low annual product sales volumes reported under don’t replicate the prices of gross sales, working bills, or different prices or bills that have to be deducted from the product sales figures to acquire your web revenue or revenue.

• The franchise program for Hen Salad Chick Eating places is structured to supply to franchisees, in Hen Salad Chick’s capability as franchisor, a number of the companies that its affiliate gives to the affiliate-owned Hen Salad Chick Eating places recognized under. Nevertheless, Hen Salad Chick doesn’t present sure companies to franchisees that the enterprise proprietor usually gives, corresponding to financing, accounting, authorized, personnel, and administration companies. The provision, price, and high quality of those companies to a franchisee doubtless will have an effect on operations.

Half 1 – Franchised Eating places (Gross sales)

• Variety of Eating places in Vary:  130
• Common Unit Quantity:  $1,293,304
• Highest Gross sales:  $2,303,586
• Lowest Gross sales:  $545,019
• Quantity and Proportion of Eating places Exceeding Common:  62 / 48%
• Median Unit Quantity:  $1,244,233

Half 2 – Affiliate-Owned Eating places (Gross sales)

• Variety of Eating places in Vary:  44
• Common Unit Quantity:  $1,404,812
• Highest Gross sales:  $2,351,445
• Lowest Gross sales:  $754,902
• Quantity and Proportion of Eating places Exceeding Common:  20 / 45%
• Median Unit Quantity:  $1,386,542

Half 3 – Common Partial Working Monetary Assertion for Affiliate-Owned and Operated Eating places

Whole Gross Gross sales:  $1,404,812 (100.00%)

Prime Prices

• Whole Price of Items Offered:  $478,415 (34.06%)
• Whole Payroll & Associated:  $363,122 (25.85%)
• Whole Prime Prices:  $841,537 (59.90%)

Whole Working Bills:  $64,532 (4.59%)

Whole Non-Controllable Bills:  $63,117 (4.49%)

Whole Occupancy Prices:  $118,413 (8.43%)

Native Advertising Expense:  $46,026 (3.28%)

Model Fund Payment:  $21,072 (1.50%)

EBITDA:  $250,114 (17.80%)

Royalty Payment:  $70,241 (5.00%)

Adjusted EBITDA:  $179,874 (12.80%)

Subset of ” Whole Payroll & Associated” Above:

• Whole Restaurant Stage Wage:  $105,880 (7.54%)

• Whole Price of Items Offered: This consists of the price of all meals, drinks, supply companies, and paper items used within the Eating places. A franchisee in a brand new market with lower than 3 open Eating places may count on that its Price of Items Offered will probably be greater, doubtless ranging between a further 1% and a pair of% of complete gross sales. Some proprietary objects may not be stocked by Hen Salad Chick’s native distributor, inflicting a rise in freight prices.

• Whole Payroll & Associated: This consists of all salaries, hourly wages, bonuses, payroll taxes, and advantages paid at every affiliate-owned Restaurant.

• Whole Prime Prices: That is the sum of Price of Items Offered plus Payroll & Associated.

• Whole Working Bills: These embrace disposables, restaurant provides, journey bills, cleansing provides, linen, uniforms, pest management, supply expense, music, expertise, permits, licenses, workplace provides, postage, gear rental, trash elimination, {and professional} companies.

• Whole Non-Controllable Bills: These embrace financial institution charges, telephone and web, utilities, and repairs and upkeep.

• Whole Occupancy Prices: These embrace base lease, widespread space upkeep, property taxes, and insurance coverage.

• Model Fund Payment: Every affiliate-owned Restaurant contributes to the Model Fund the identical 2% of product sales contributed by franchisees.

• The EBITDA calculation makes use of the next components: Whole Gross Gross sales minus (i) Whole Prime Prices, (ii) Whole Working Bills, (iii) Whole Non-Controllable Bills, (iv) Whole Occupancy Prices, and (v) Native Advertising Expense and Model Fund.

• Royalty Payment: Affiliate-owned Eating places don’t pay Royalties. This line-item represents the Royalty Payment of 5% that franchisees would pay had they operated these Eating places beneath Hen Salad Chick’s Franchise Settlement.

• Adjusted EBITDA: This calculation is EBITDA minus Royalty Payment.

• Some Hen Salad Chick Eating places have earned these quantities. Your particular person outcomes could differ. There isn’t any assurance that you’ll earn as a lot.

Part VI – Hen Salad Chick Franchise Ratios, Comparables, Computations, and Analyses (Unique Content material for Platinum Subscribers) ⬇️