In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Metal Supermarkets franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Metal Supermarkets franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Metal Supermarkets outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Metal Supermarkets franchise opportunity

Section V – Presentation and analysis of Metal Supermarkets’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• first year quarterly gross sales for the 64 franchised Metal Supermarkets stores opened in fiscal years 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 and that have been open for at least 12 full months as of September 30, 2023

• second year quarterly gross sales for the 55 franchised Metal Supermarkets stores opened in fiscal years 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 and that have been open for at least 24 full months as of September 30, 2023

• 2020, 2021, 2022, and 2023 average, median, high average, and low average invoice value; and average and median number of invoices per month per store for the 55 franchised Metal Supermarkets stores that operated for the entire four-year period from the company’s fiscal year 2020 to fiscal year 2023

• 2020, 2021, 2022, and 2023 average store gross margin; and average, median, high, and low gross profit per store for the 55 franchised Metal Supermarkets stores that operated for the entire four-year period from the company’s fiscal year 2020 to fiscal year 2023

• 2020, 2021, 2022, and 2023 average, median, high, and low annual gross sales for the 55 franchised Metal Supermarkets stores that operated for the entire four-year period from the company’s fiscal year 2020 to fiscal year 2023

Section VI – Key ratios, comparables, computations, and analyses for the Metal Supermarkets franchise opportunity (exclusive content for Platinum subscribers)

Section I – Metal Supermarkets Franchise Costs

• Initial Franchise Fee:  $44,500
• Equipment, Furnishings, and Fixtures:  $130,000 to $180,000
• Permits, Licenses, and Professional Fees:  $3,000 to $10,000
• Computer System, Software, and Telecommunication System:  $7,000 to $15,000
• Insurance:  $4,000 to $7,000
• Travel and Living Expenses While Training:  $5,000 to $10,000
• Security Deposits, Utility Deposits:  $5,000 to $10,000
• Leasehold Improvements:  $15,000 to $35,000
• Signage:  $3,000 to $6,000
• Opening Inventory:  $50,000 to $90,000
• Initial Advertising:  $15,000 to $30,000
• Real Estate Leasing:  $9,000 to $45,000
• Additional Funds for 3 Months:  $50,000 to $110,000
• Total Estimated Metal Supermarkets Franchise Costs:  $340,500 to $592,500

Section II – Metal Supermarkets’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $44,500

• Royalty Fee:  on monthly Gross Sales up to $140,402, a royalty fee of 6% of such Gross Sales; on Gross Sales from $140,403 to $207,794, a royalty fee of 5% of such Gross Sales; and on Gross Sales from $207,797 or more, a royalty fee of 3% of such Gross Sales; all subject to annual CPI adjustments and the minimum annual royalty requirement

• Brand Fund Contribution:  currently, 2% of Gross Sales, subject to an annual maximum contribution of $33,781 and subject to annual CPI adjustments

• Advertising Expenditures:  after the initial year, the greater of $10,000 or 1% of Gross Sales each year

Section III – Number of Franchised and Company-Owned Metal Supermarkets Outlets

Franchised

2021

• Outlets at the Start of the Year:  64
• Outlets at the End of the Year:  72
• Net Change:  +8

2022

• Outlets at the Start of the Year:  72
• Outlets at the End of the Year:  81
• Net Change:  +9

2023

• Outlets at the Start of the Year:  81
• Outlets at the End of the Year:  83
• Net Change:  +2

Company-Owned

2021

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  3
• Net Change:  -1

2022

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  3
• Net Change:  0

2023

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  2
• Net Change:  -1

Section IV – News Updates on the Metal Supermarkets Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Metal Supermarkets Franchise (Item 19, 2024 FDD)

• Parts 1 and 2 below provide quarterly Gross Sales information for each new franchised Store that was first opened during Metal Supermarkets’ 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 fiscal years (the period from October 1, 2012 to September 30, 2022) and that operated for at least 12 or 24 full months since then until Metal Supermarkets’ fiscal year end on September 30, 2023.

• Parts 3 to 5 below show the actual average invoice values, gross margins, and sales per Store for Metal Supermarkets’ 2020, 2021, 2022, and 2023 fiscal years (which run from October 1 to September 30 of each year). The figures are based on the 55 franchised stores that operated for the entire four-year period on Metal Supermarkets’ server-based platform.

• The figures do not include information on 30 currently operating franchised Stores that were not open for the entire four-year period, eight of which were opened in 2020, nine of which were opened in 2021, nine of which were opened in 2022, and four of which were opened in 2013; and five franchised Stores that closed during the four-year period, two of which closed in 2020, one of which closed in 2021, none of which closed in 2022, and two of which closed in 2023.

Part 1 – First Year Quarterly Gross Sales for the 64 Stores Opened in Fiscal Years 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 and That Have Been Open for at Least 12 Full Months as of September 30, 2023

Average First Year Quarterly Gross Sales (64 Stores)

• Average Gross Sales During 1st Quarter:  $73,343
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales During 1st Quarter:  28 (44%)
• Average Gross Sales During 2nd Quarter:  $112,950
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales During 2nd Quarter:  27 (42%)
• Average Gross Sales During 3rd Quarter:  $148,449
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales During 3rd Quarter:  26 (41%)
• Average Gross Sales During 4th Quarter:  $167,479
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales During 4th Quarter:  28 (44%)
• Average Annual Gross Sales During First 12 Full Months:  $502,222
• Number and Percentage of Stores That Met or Exceeded the Average Annual Gross Sales During First 12 Full Months:  26 (41%)

Part 2 – Second Year Quarterly Gross Sales for the 55 Stores Opened in Fiscal Years 2013, 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, and 2022 and That Have Been Open for at Least 24 Full Months as of September 30, 2023

Average Second Year Quarterly Gross Sales (55 Stores)

• Average Gross Sales During 1st Quarter:  $186,321
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales During 1st Quarter:  23 (42%)
• Average Gross Sales During 2nd Quarter:  $197,431
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales During 2nd Quarter:  22 (40%)
• Average Gross Sales During 3rd Quarter:  $218,667
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales During 3rd Quarter:  22 (40%)
• Average Gross Sales During 4th Quarter:  $222,107
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales During 4th Quarter:  26 (47%)
• Average Annual Gross Sales During First 12 Full Months:  $824,527
• Number and Percentage of Stores That Met or Exceeded the Average Annual Gross Sales During Second 12 Full Months:  21 (38%)

Part 3 – Average Invoice Value (Franchised Stores)

2020

• Average Invoice Value:  $205.17
• Number and Percentage of Stores That Met or Exceeded the Average Invoice Value:  27 (50%)
• Median Invoice Value:  $202.85
• Average Number of Invoices Per Month Per Store:  560
• Median Number of Invoices Per Month Per Store:  494
• Number and Percentage of Stores That Met or Exceeded the Average Invoices Per Month Per Store:  22 (41%)
• High Average Invoice Value:  $660.71
• Low Average Invoice Value:  $121.06

2021

• Average Invoice Value:  $271.41
• Number and Percentage of Stores That Met or Exceeded the Average Invoice Value:  26 (48%)
• Median Invoice Value:  $267.72
• Average Number of Invoices Per Month Per Store:  563
• Median Number of Invoices Per Month Per Store:  490
• Number and Percentage of Stores That Met or Exceeded the Average Invoices Per Month Per Store:  18 (33%)
• High Average Invoice Value:  $1,113.74
• Low Average Invoice Value:  $158.12

2022

• Average Invoice Value:  $366.55
• Number and Percentage of Stores That Met or Exceeded the Average Invoice Value:  26 (48%)
• Median Invoice Value:  $356.68
• Average Number of Invoices Per Month Per Store:  512
• Median Number of Invoices Per Month Per Store:  463
• Number and Percentage of Stores That Met or Exceeded the Average Invoices Per Month Per Store:  18 (33%)
• High Average Invoice Value:  $1,859.07
• Low Average Invoice Value:  $204.96

2023

• Average Invoice Value:  $334.13
• Number and Percentage of Stores That Met or Exceeded the Average Invoice Value:  25 (43%)
• Median Invoice Value:  $509.21
• Average Number of Invoices Per Month Per Store:  538
• Median Number of Invoices Per Month Per Store:  509
• Number and Percentage of Stores That Met or Exceeded the Average Invoices Per Month Per Store:  19 (35%)
• High Average Invoice Value:  $1,289.22
• Low Average Invoice Value:  $168.65

Part 4 – Average Gross Margin and Gross Profit (Franchised Stores)

2020

• Average Store Gross Margin:  50.92%
• Number and Percentage of Stores That Met or Exceeded the Average Gross Margin:  29 (55%)
• Average Gross Profit Per Store:  $702,234
• Number and Percentage of Stores That Met or Exceeded the Average Gross Profit Per Store:  20 (37%)
• Median Annual Gross Profit Per Store:  $562,331
• High Annual Gross Profit Per Store:  $1,826,187
• Low Annual Gross Profit Per Store:  $179,356

2021

• Average Store Gross Margin:  52.52%
• Number and Percentage of Stores That Met or Exceeded the Average Gross Margin:  3o (56%)
• Average Gross Profit Per Store:  $963,936
• Number and Percentage of Stores That Met or Exceeded the Average Gross Profit Per Store:  21 (39%)
• Median Annual Gross Profit Per Store:  $839,277
• High Annual Gross Profit Per Store:  $2,586,995
• Low Annual Gross Profit Per Store:  $314,672

2022

• Average Store Gross Margin:  49.52%
• Number and Percentage of Stores That Met or Exceeded the Average Gross Margin:  33 (61%)
• Average Gross Profit Per Store:  $1,117,005
• Number and Percentage of Stores That Met or Exceeded the Average Gross Profit Per Store:  17 (31%)
• Median Annual Gross Profit Per Store:  $964,729
• High Annual Gross Profit Per Store:  $3,178,205
• Low Annual Gross Profit Per Store:  $287,865

2023

• Average Store Gross Margin:  48.58%
• Number and Percentage of Stores That Met or Exceeded the Average Gross Margin:  33 (61%)
• Average Gross Profit Per Store:  $1,049,672
• Number and Percentage of Stores That Met or Exceeded the Average Gross Profit Per Store:  20 (37%)
• Median Annual Gross Profit Per Store:  $905,411
• High Annual Gross Profit Per Store:  $3,237,466
• Low Annual Gross Profit Per Store:  $225,789

Part 5 – Average Gross Sales (Franchised Stores)

2020

• Average Gross Sales Per Store:  $1,379,148
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales Per Store:  21 (39%)
• Median Annual Gross Sales:  $1,138,734
• High Annual Gross Sales:  $3,333,593
• Low Annual Gross Sales:  $284,230

2021

• Average Gross Sales Per Store:  $1,835,345
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales Per Store:  18 (33%)
• Median Annual Gross Sales:  $1,599,936
• High Annual Gross Sales:  $4,676,423
• Low Annual Gross Sales:  $487,633

2022

• Average Gross Sales Per Store:  $2,255,562
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales Per Store:  17 (31%)
• Median Annual Gross Sales:  $1,955,191
• High Annual Gross Sales:  $6,092,476
• Low Annual Gross Sales:  $563,419

2023

• Average Gross Sales Per Store:  $2,160,901
• Number and Percentage of Stores That Met or Exceeded the Average Gross Sales Per Store:  17 (31%)
• Median Annual Gross Sales:  $1,815,184
• High Annual Gross Sales:  $6,191,887
• Low Annual Gross Sales:  $519,004

• Gross Margin is Gross Sales of a Store less cost of goods sold, expressed as a percentage of total Gross Sales.

• Except for the cost of goods sold incorporated into the calculation of Gross Margin, Part 4 does not reflect other operating expenses or other costs that must be deducted from the Gross Sales figures to obtain your net income or profit.

• Gross Sales means all revenue from the sale of all services and products and all other income of every kind and nature related to, derived from, or originating from a Store and the business operated under the Franchise Agreement, including barter and the proceeds of any business interruption insurance policies, whether for cash or credit, and regardless of theft, or of collection.

• Gross Sales does not include (i) sales taxes or other taxes that you collect from customers and actually pay to the appropriate taxing authorities, or (ii) revenue from the sale of products to other Metal Supermarkets stores.

• Gross Profit is Gross Sales of a Store less cost of goods sold, expressed as a dollar amount. This does not include the cost of outside processing, employee costs, royalties, or other fees.

• The information included in the financial performance representation was accumulated from internally generated Store financial information from these franchised businesses.

• Some Stores have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Section VI – Metal Supermarkets Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️