How much can I make?
Quite frankly, it’s up to you.
Nobody wakes up in the morning and says to themselves “I want to be average today,” yet most people focus on averages when they research buying a franchise.
Average is average.
Please don’t stop at average. We encourage you to aspire to a lot more!
Please see the table below to see information on our franchisee’s results. Like all companies, some people become top producers and some struggle. We want you to make a decision you feel good about, which is why we don’t hard sell or candy-coat our earnings claims.
We are looking for new members for our winning team. Unlike a lot of franchise companies, we don’t do well unless you do well, and we want you to become a top producer. We want people who see themselves as potential top-producers and can’t wait to break our records.
If you want to be above average, we can tell you how.
The following information is taken directly from the August 2012 Planet Beach Franchise Disclosure Document, item 19. The full FDD is provided to all candidates:
FINANCIAL PERFORMANCE REPRESENTATIONS
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.
The performance results included in this item relate to the historical results and are not the actual or probable performance results that you should expect or achieve through the operation of your Planet Beach Spa. Some outlets have achieved these annual gross revenues. Your individual results may differ. You are likely to achieve these results that are different, possibly significantly and adversely, from the results shown below.
As of December 31, 2012, there were 244 open Planet Beach outlets, including 218 U.S. locations. PBFC does not have any company-owned outlets since February 2011. The following data relates to the U.S. locations only.
The highest reported annual gross revenue for 2012 totaled $778,588; an increase of 29% from the highest reported annual gross revenue for 2011, which totaled $604,062. Ranked by reported annual gross revenue for 2012, the top 10, top 50 and top 100 domestic locations had average revenues totaling $544,216, $380,401, and $303,366, respectively.
At 12/31/12, the average Planet Beach outlet had been open for 7.2 years. This includes locations which opened in 2012 operating for less than 1 year, up to 17.6 years for the oldest open location. Based on the reported annual revenue, locations in the top 10 had been open 3.3 years to 17.6 years, with 3 locations open less than 5.5 years. Locations in the top 50 and top 100 had 29 and 57 locations open, respectively, less than the average open life of 7.2 years.
At 12/31/12, there were 34 locations open 10 years or more or 16%, 51 locations open 5 years or less or 23%, and 133 locations open greater than 5 years but less than 10 years or 61%.
As a result of our pre-sale program, during mid-2012, a Planet Beach outlet in Utah opened with a company record initial monthly membership net draft totaling $20,368.
The gross revenues reported above were derived from unaudited financial reports submitted by franchisees for the purpose of computing royalty fees. In some instances, lower reported annual revenues may be attributable to franchisee noncompliance, including underreporting and/or late reporting of sales figures. All franchise outlets are contractually obligated to submit monthly reports to PBFC.. In PBFC’s experience, those outlets that aggressively followed the Franchised System and participated in all training opportunities generally had the highest annual gross revenues.
Actual results will vary from franchise to franchise and we cannot estimate the results of any particular franchise. We do not represent that any franchisee can expect to obtain the above revenue levels. You must accept the risk that your actual numbers may or may not reach or exceed these reported calculations.
You are responsible for developing your own business plan for your business, including capital budgets, financial statements, projections and other elements appropriate to your particular circumstances. PBFC encourages 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. In addition, historical costs do not necessarily correspond to future costs because of factors such as inflation, changes in minimum wage laws, location, financing, real estate-related costs and other variables. Finally, prospective franchisees must bear in mind that a newly opened business cannot be expected to achieve sales volumes or maintain expenses similar to those of an established outlet.
Other than as set forth in this Item 19 or in any supplemental financial performance representation, PBFC does not furnish, or authorize its salespersons (or anyone else) to furnish, and you should not rely on, any oral or written information concerning the actual or potential sales, income or profits of a Spa business. PBFC has not suggested, and it certainly cannot guarantee, that you will succeed in the operation of your business.
Your ultimate success will be a function of the following: (i) your skill and experience; (ii) the effort that you devote to your franchised business; (iii) your business acumen; (iv) the growth or shrinkage of the population in your territory; (v) prices you charge for products and services; (vi) the number and skill of the sales consultants you use; (vii) the amount you expend on advertising and promotion; (viii) general economic conditions; (ix) the enthusiasm of the population in your territory towards tanning and automated spa services; (x) the relative affluence of the population in your territory; (xi) other factors affecting supply and demand; and (xii) other factors affecting profitability, like your operating expenses, general and administrative expenses and other variables.
SUBSTANTIATION OF THE DATA USED IN PREPARING THIS FRANCHISE DISCLOSURE DOCUMENT WILL BE MADE AVAILABLE TO PROSPECTIVE FRANCHISEES UPON REASONABLE REQUEST.