How Much Money Can I Make?
How well do our franchisees do in their businesses?
Profitability will vary considerably depending upon such factors as: location, operating costs, financing terms, your ability to manage and control the business, sales and other factors. We do not predict sales or profits for any new locations. We encourage you to discuss this with existing franchisees and your personal advisors.
Do you make Financial Performance Representations in the Franchise Disclosure Document?
Yes, our Franchise Disclosure Document includes detailed information regarding the financial performance of our affiliate and franchise locations. The details of our Item 19 are below.
FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC’s Franchise Rules 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:
- A franchisor provides the actual records of an existing outlet you are considering buying; or
- 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.
2022 Gross Sales – All 71 PANCHERO’S restaurants operating full calendar year
As of December 31, 2022, there were 71 Pancheros restaurants (44 franchised restaurants and 27 affiliate-owned restaurants) in operation for the calendar year 2022.
The following chart reflects the 2022 gross sales of all 71 restaurants (franchised and affiliate-owned) that were in operation during the year.
| Average | Median | High | Low | |
|---|---|---|---|---|
| All 71 Resturants | $1,410,2706 | $1,245,7396 | $3,798,339 | $365,153 |
| 44 Franchised Restaurants | $1,426,3127 | $1,209,9577 | $3,798,339 | $365,153 |
| 27 Affiliate-Owned Restaurants | $1,384,1288 | $1,273,0568 | $2,209,864 | $534,706 |
These financial performance figures do not reflect royalty fees, advertising fund contributions, operating expenses, or other costs or expenses that must be deducted from gross sales to obtain your net income or profit. “Gross Sales” has the same meaning as Gross Revenues which is all revenue derived from the operation of the Franchised Restaurant, including sales revenue derived from off-premises sales, whether received in cash, in services in kind, from barter and/or exchange, on credit (whether or not payment is received) or otherwise, less any sales tax or other taxes collected from your customers if paid to the appropriate taxing authority. Gross Sales also does not include the amount of any documented refunds and credits given in good faith to customers (but only if the original amounts were included in Gross Sales). All barter and/or exchange transactions for which you furnish services and/or products in exchange for goods or services to be provided to you by a vendor, supplier or customer will, for the purpose of determining Gross Sales be valued at the full retail value of the goods and/or services provided to you.
Note 1. These financial performance figures do not reflect royalty fees, advertising fund contributions, operating expenses, or other costs or expenses that must be deducted from gross sales to obtain your net income or profit. “Gross Sales” has the same meaning as Gross Revenues which is all revenue derived from the operation of the Franchised Restaurant, including sales revenue derived from off-premises sales, whether received in cash, in services in kind, from barter and/or exchange, on credit (whether or not payment is received) or otherwise, less any sales tax or other taxes collected from your customers if paid to the appropriate taxing authority. Gross Sales also does not include the amount of any documented refunds and credits given in good faith to customers (but only if the original amounts were included in Gross Sales). All barter and/or exchange transactions for which you furnish services and/or products in exchange for goods or services to be provided to you by a vendor, supplier or customer will, for the purpose of determining Gross Sales be valued at the full retail value of the goods and/or services provided to you.
Note 2: 14 (32%) franchised restaurants and 13 (48%) affiliate-owned restaurants met or exceeded this average; 22 (50%) franchised restaurants and 16 (59%) affiliate-owned restaurants met or exceeded this median
Note 3: 14 (32%) franchised restaurants met or exceeded this average and 22 (50%) of franchised restaurants met or exceeded this median
Note 4: 13 (48%) affiliate-owned restaurants met or exceeded this average and 14 (52%) affiliate-owned restaurants met or exceeded this median
2022 Food and Paper Costs
The following chart reflects the 2022 food and paper costs for the 27 affiliate-owned restaurants that we operate, that were in operation for the full 12 months of 2022. These 27 restaurants use a common back office system and common food cost calculation procedures. There are no franchised restaurants in this group.
| Average | Low | High | Median | |
|---|---|---|---|---|
| Food | 30.69%2 | 24.60% | 35.90% | 30.60% |
| Paper | 3.93%3 | 3.30% | 4.70% | 3.90% |
- The above costs do not include labor, rent, utilities, and other costs incurred by affiliate-owned restaurants. Franchised restaurants may incur additional costs that affiliate-owned restaurants do not have, including royalty payments, training expenses, and certain advertising fees.
- 15 (or 56%) of these 27 restaurants met or exceeded this average.
- 14 (or 42%) of these 27 restaurants met or exceeded this average.
Some Restaurants have sold these amounts. Your individual results may differ. There is no assurance that you will sell as much.
Written substantiation for the financial performance representation will be made available to you upon reasonable request. Except for the information presented above, 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 any 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 other financial performance information or projections of your future income, you should report it to the franchisor’s management by contacting Rodney Anderson, 2475 Coral Ct., Suite B, Coralville, Iowa 52241 (319) 545-6565, the Federal Trade Commission, and the appropriate state regulatory state agencies.
To view past years financial performance representations, please visit the page here.
