Financial Performance Representation
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.
This Item contains the historical 2017 average Gross Profit information for 93 Murphy Business franchisees in operation during the entire 2017 calendar year; and average Gross Profit of Murphy Business franchises that operated with agents and those that operated without agents. Gross Profit is defined as gross revenues less royalty.
The data used in preparing this financial performance representation was compiled from information submitted to us by the franchisees in the closing submissions reports. While we believe that these closing submission reports contain accurate information, we have not independently verified the information. Written substantiation of the data used in preparing this financial performance representation will be made available to a prospective franchisee on reasonable request.
There were 129 Murphy Business franchises in operation during 2017. Of those, 24 were not operational for the entire year because they were either newly added, expired or terminated. Also, 21 franchisees operate more than one franchise license. Therefore, the 93 franchises included in this representation (i) were in operation as of August 01, 2018, (ii) performed business brokerage services as part of their operation, (iii) began operation on or before December 31, 2016 and (iv) were in operation for the entire 2017 calendar year. The typical time for a Murphy Business franchise to close on their first business transfer is 8-9 months; however, they are able to generate revenue from other ancillary services.
Top, Middle, and Low Thirds
Sole Proprietor vs. Office with Agents
Some franchisees operate as sole proprietors and some operate with independent contractor agents. The table below shows Average Gross Profits as outlined above for the two different operating methods.
Individual franchisee gross profits vary. The revenues of franchisees will be affected by many factors, including, but not limited to (a) geographic location; (b) competition from similar businesses in your area; (c) your marketing efforts; (d) your ability to generate customers; (e) your operational skills and management methods; (f) changing demographics; and (g) governmental regulations and requirements.
Therefore, we recommend that you make your own independent evaluation and investigation to determine whether or not your business is likely to be profitable. You should use the above information only as a reference in conducting your analysis and preparing your own projected cash flow. We strongly suggest that you consult your own financial advisor or personal accountant concerning financial projections.
Some franchisees have achieved these Gross Profits. Your individual results may differ. There is no assurance that your business will achieve the same or comparable results.
Other than the preceding financial performance representation, we do not make any financial performance representations. 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 franchise, however, we may provide you with the actual records of that franchise. If you receive any other financial performance information or projections of your future income, you should report it to our management by contacting Thomas J. Coba, CEO, Murphy Business & Financial Corporation LLC, 513 N. Belcher Road, Clearwater, FL 33765, 727-725-7090, the Federal Trade Commission, and the appropriate state regulatory agencies.