Whether you’re a first-time franchisee or an existing franchise owner looking to expand, it’s critical that you understand how to read Sarpino’s USA Item 19 in FDD and pay close attention to the entire process as it relates to signing a development agreement. The steps we’ve built are there to protect you and us while we determine together if we’re the right fit for each other – both financially and culturally. 

One of the most important parts of purchasing a franchise is your review of the Franchise Disclosure Document (FDD) that you will receive from any franchisor, including Sarpino’s USA. It holds significant material that you as a franchisee need to know about. An FDD can be quite heavy with important information. A great way to approach it is by already knowing what to look out for. This is especially true as it relates to an Item 19 in an FDD. The gross sales, revenue and expense data presented in our Item 19 is based on information reported to us by franchisees. We have not independently verified this data. Some Sarpino’s USA franchises have earned this amount. Your individual results may differ. There is no assurance that you will earn as much. 

Here’s how to read our Sarpino’s USA Item 19 in our FDD.

Sarpino’s USA Item 19

An Item 19 is a financial performance representation that is any written or oral statement made by a franchisor to a franchisee and/or public about the actual or potential financial performance of a franchised business. The definition of what qualifies as and constitutes a financial performance representation is broad. It includes historical data, projections, and pro-formas. Under the Federal Franchise Rule, financial performance representations are defined as: “Any representation, including any oral, written, or visual representation, to a prospective franchisee, including a representation in the general media, that states, expressly or by implication, a specific level or range of actual or potential sales, income, gross profits, or net profits. The term includes a chart, table or mathematical calculation that shows possible results based on a combination of variables.”

Questions Asked about Item 19 in FDD

In the ordinary course of the Sarpino’s USA franchise sales process, prospective franchisees usually ask questions about the actual or potential financial performance of our franchised business. Questions like:

  • “What do your numbers look like?”
  • “How much can I make or take home?”
  • “Can you help me project my revenues and earnings as a franchisee?”
  • “What should I estimate my revenues to be in years one, two, three, etc.…?”
  • “What kind of profit margin should I expect?”
  • “Can you give me a pro forma worksheet to estimate my revenues and profit?”

From a sales perspective, answers to these questions could provide franchisees with important validating factors and metrics for comparison. We understand that. And that’s why we’ve built out a robust Item 19 in our new FDD so that you can better understand how owning a Sarpino’s USA franchise works. 

How to Read a Sarpino’s USA Item 19 in our FDD

SAs part of our new Item 19, you’ll see that we broke down net sales across Sarpino’s USA restaurants during the 2022 fiscal year. We break down that year into average net sales by geographic location to provide a complete view of our system, especially in our target growth markets like Florida.

Average Net Sales by Geographic Location disclosed in our Item 19 of FDD

The average net sales for Florida restaurants ending in December 2022 was $1,403,802. The average net sales for Sarpino’s USA restaurants across all states ending in December 2022 was $1,078,568. Furthermore, we provide information regarding average net sales between the highest and lowest performers.

Average Labor Costs disclosed in Item 19 of FDD

Additionally, we break down historical average labor costs as a percentage of net sales in the FDD. In Florida, for example, average labor costs of franchise units ending in December 2022 was under 30%. 

Average Labor Cost in Item 19 of FDD

Net Average Ticket by Geographic Location 

Furthermore, we provide prospects with historical average ticket sales of franchised restaurants for 2022. The information is compiled from our point-of-sale system. We have not independently verified this data. Some Sarpino’s USA franchises have earned this amount. Your individual results may differ. There is no assurance that you will earn as much. 

Net Average Ticket in Item 19 of FDD

Franchising with Sarpino’s USA

Selecting to purchase a Sarpino’s USA franchise requires more than just knowledge about how we stay on top of our competition but also how we make use of opportunities and operate to make sure you have the best chance for your business to profit from the at the start of your operations. It is essential to be aware of how to analyze an FDD and an Item 19 to make the best possible decision when choosing franchise. It gives you a better idea of what to expect with the franchise and its potential.

Franchise Information

For more information about franchising opportunities with Sarpino’s USA, visit sarpinosfranchise.com

*The information provided here is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for informational purposes only. Any franchise offer made is by a Franchise Disclosure Document (FDD) registered in the applicable state. The FDD will include detailed information regarding the franchisor and the franchise opportunity.