The Numbers* - Cash Flow
2016 Average Owner's Discretionary Cash Flow for Stores Open for Full Year
2016 Average Owner’s Discretionary Cash Flow for Top Half of Stores Open for Full Year
2015 Average Owner's Discretionary Cash Flow for Stores Open for Full Year
*Canadian and First Year Stores are Excluded
Some outlets have earned this amount. There is no assurance that you’ll do as well. If you rely on these figures, you must accept the risk of not doing as well. Performance reflects unaudited information for stores in operation a full 12 months as of December 31st each year, with the age of included stores ranging from 2 to over 30 years. Canadian and first year stores are not included in this analysis. These stores generally are located in neighborhood or regional strip centers or freestanding buildings. “Owner’s Discretionary Cash Flow” (“ODCF”) is determined with reference to the unaudited profit and loss statements submitted to us by each store included in the chart. To derive the ODCF for each store, we subtracted the Cost of Goods Sold (“COGS”) and Operating Expenses from the Gross Sales for each store, and then added back in the data reported by each franchisee as “owner’s wages”, “amortization/depreciation”, “owner’s life insurance”, “owner’s health insurance”, “owner’s retirement plan”, and “auto expense”. We then averaged the ODCF for all stores during each of 2015 and 2016. COGS are the out-of-pocket expenses to acquire merchandise for resale and includes shipping. Operating Expenses include various expenses, including owner’s wages, non-owner’s wages, payroll taxes and employee benefits, marketing, store retailing suppliers, occupancy costs, utilities, computer expense, insurance, maintenance and repair, royalties, supplies and postage, travel and meals/entertainment, auto expense, miscellaneous, merchant fees, depreciation and amortization. Stores not included were stores for which the franchisee’s fiscal year was different than calendar year or for which the franchisee failed to submit reliable financial statements to us. We did not exclude stores due to characteristics such as a specific type of geography, type of location, degree of competition or other similar factors. See Item 19 of the Wild Birds Unlimited 2018 Franchise Disclosure Document for more information.
Footnotes to ODCF information:
- For all 233 stores operating at least 24 months at 12-31-15, the ODCF was $85,903. Of these 233 stores, 91 (or 39.06%) exceeded the ODCF figure of $85,903. The 2015 Median ODCF for the same 233 stores was $65,327.
- For all 242 stores operating at least 24 months at 12-31-16, the ODCF was $91,867. Of these 242 stores, 100 (or 41.32%) exceeded the ODCF figure of $91,867. The 2016 Median ODCF for the same 242 stores was $72,114.