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

Section I – Estimated initial investment (franchise costs) for an Uptown Cheapskate franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for an Uptown Cheapskate franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Uptown Cheapskate 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 Uptown Cheapskate franchise opportunity

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

• November 1, 2022 through October 31, 2023 average gross sales, cost of goods sold, gross profit, franchise royalty, administration, facility, marketing, sales expense, labor, total expenses, and net income for the 101 franchisees whose Uptown Cheapskate stores operated in the United States during the measurement period, by quartile and overall

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

Section I – Uptown Cheapskate Franchise Costs

• Franchise Fee:  $25,000
• Travel and Lodging Expenses While Training:  $1,500 to $5,500
• Real Estate Deposit:  $5,625 to $22,500
• Real Estate Improvements:  $35,000 to $160,000
• Exterior Signs and Graphics:  $13,500 to $17,500
• Interior Signs:  $4,000 to $6,000
• Trade Fixtures:  $67,500 to $85,500
• Computers, Scanners, Cash Drawers, Printers, Credit Card Machines, Routers, Cables, iPads, etc.:  $15,334
• BaseCamp Software Suite:  $10,000
• Security Camera System:  $2,000 to $5,000
• Grand Opening Promotion:  $20,000
• Opening Inventory:  $70,000 to $90,000
• Incorporation Documents:  $500 to $1,000
• Loan Fees:  $7,500 to $12,500
• Licenses, Permits, Utility Deposits:  $1,000 to $2,000
• Supplies, Hangers, Miscellaneous Expenses:  $25,000 to $30,000
• Working Capital:  $42,500 to $67,500
• Total Estimated Uptown Cheapskate Franchise Costs:  $345,959 to $575,334

Section II – Uptown Cheapskate’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Royalty:  5% of gross sales

• Marketing Fund:  0.5% of gross sales

• Advertising Expenditure:  the greater of 5% of gross sales or $2,000 per month (in addition to grand opening, reopening, relocation and transfer store expenditures, and Marketing Fund fee)

• Advertising Penalty:  1.0% of Gross Sales (from sales of prior month)

• National Marketing Program (“NMP”):  you must spend a minimum of $1,500 per month via the NMP during the calendar year in which your store opens. At the end of your first calendar year of operation, provided your Store has been open for at least 3 full months, this monthly NMP requirement will change to the lesser of (i) 2.5% of average Gross Sales and (ii) $2,500.

• Local Advertising Cooperative Fees:  at Uptown Cheapskate’s discretion, you may be required to direct a portion of your Advertising Expenditure into a Local Advertising Cooperative. At present, franchisees are not required to make such contributions.

Section III – Number of Franchised and Company-Owned Uptown Cheapskate Outlets

Franchised

2021

• Outlets at the Start of the Year:  79
• Outlets at the End of the Year:  83
• Net Change:  +4

2022

• Outlets at the Start of the Year:  83
• Outlets at the End of the Year:  99
• Net Change:  +16

2023

• Outlets at the Start of the Year:  99
• Outlets at the End of the Year:  116
• Net Change:  +17

Company-Owned

2021

• Outlets at the Start of the Year:  6
• Outlets at the End of the Year:  13
• Net Change:  +7

2022

• Outlets at the Start of the Year:  13
• Outlets at the End of the Year:  14
• Net Change:  +1

2023

• Outlets at the Start of the Year:  14
• Outlets at the End of the Year:  13
• Net Change:  -1

Section IV – News Updates on the Uptown Cheapskate Franchise

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

• The following charts were compiled from unaudited financial reports (using the accrual basis) submitted to Uptown Cheapskate from 101 Uptown Cheapskate stores that operated in the United States during the period of November 1, 2022 through October 31, 2023. This reporting period varies from Uptown Cheapskate’s fiscal year end of December 31, 2023.

• 127 stores were in operation during that period, and Uptown Cheapskate received adequate reports from 101 that were in operation for the entire period. Stores that were open for less than 12 months were excluded from this report.

• The first chart reflects performance across all 101 stores in the consideration set, while the subsequent four charts reflect average performance across quartiles, as determined by Gross Sales.

• Uptown Cheapskate’s study of financial data provided by franchisees measured its franchisees’ performance in a variety of different markets.

• These financial statements have been prepared without an audit.

Part 1 – System Average

Annualized Average Profit and Loss for the System Average, Consisting of 101 Units Operating from November 1, 2022 through October 31, 2023

Gross Sales:  $1,225,707 (100.0%)

Cost of Goods Sold:  $452,889 (36.9%)

Gross Profit:  $772,818 (63.1%)

Expenses

• Franchise Royalty:  $54,693 (4.5%)
• Administration:  $50,255 (4.1%)
• Facility:  $141,094 (11.5%)
• Marketing:  $68,894 (5.6%)
• Sales Expense:  $9,078 (0.7%)
• Labor:  $277,417 (22.6%)
• Total Expenses:  $601,431 (49.1%)

Net Income:  $171,387 (14.0%)

Part 2 – First Quartile

Annualized Average Profit and Loss for the First Quartile (by Gross Sales), Consisting of 26 Units Operating from November 1, 2022 through October 31, 2023

Gross Sales:  $1,835,993 (100.0%)

Cost of Goods Sold:  $695,147 (37.9%)

Gross Profit:  $1,140,847 (62.1%)

Expenses

• Franchise Royalty:  $82,392 (4.5%)
• Administration:  $67,888 (3.7%)
• Facility:  $170,392 (9.3%)
• Marketing:  $95,391 (5.2%)
• Sales Expense:  $13,307 (0.7%)
• Labor:  $418,881 (22.8%)
• Total Expenses:  $848,251 (46.2%)

Net Income:  $292,596 (15.9%)

Part 3 – Second Quartile

Annualized Average Profit and Loss for the Second Quartile (by Gross Sales), Consisting of 25 Units Operating from November 1, 2022 through October 31, 2023

Gross Sales:  $1,288,678 (100.0%)

Cost of Goods Sold:  $471,231 (36.6%)

Gross Profit:  $817,447 (63.4%)

Expenses

• Franchise Royalty:  $56,959 (4.4%)
• Administration:  $51,504 (4.0%)
• Facility:  $137,734 (10.7%)
• Marketing:  $73,524 (5.7%)
• Sales Expense:  $8,808 (0.7%)
• Labor:  $283,201 (22.0%)
• Total Expenses:  $611,730 (47.5%)

Net Income:  $205,717 (16.0%)

Part 4 – Third  Quartile

Annualized Average Profit and Loss for the Third Quartile (by Gross Sales), Consisting of 25 Units Operating from November 1, 2022 through October 31, 2023

Gross Sales:  $1,035,128 (100.0%)

Cost of Goods Sold:  $371,393 (35.9%)

Gross Profit:  $663,735 (64.1%)

Expenses

• Franchise Royalty:  $47,215 (4.6%)
• Administration:  $44,175 (4.3%)
• Facility:  $146,288 (14.1%)
• Marketing:  $59,142 (5.7%)
• Sales Expense:  $8,167 (0.8%)
• Labor:  $228,395 (22.1%)
• Total Expenses:  $533,382 (51.5%)

Net Income:  $130,353 (12.6%)

Part 5 – Fourth Quartile

Annualized Average Profit and Loss for the Fourth Quartile (by Gross Sales), Consisting of 25 Units Operating from November 1, 2022 through October 31, 2023

Gross Sales:  $718,617 (100.0%)

Cost of Goods Sold:  $264,095 (36.8%)

Gross Profit:  $454,523 (63.2%)

Expenses

• Franchise Royalty:  $31,098 (4.3%)
• Administration:  $36,749 (5.1%)
• Facility:  $108,790 (15.1%)
• Marketing:  $46,458 (6.5%)
• Sales Expense:  $5,859 (0.8%)
• Labor:  $173,532 (24.1%)
• Total Expenses:  $402,487 (56.0%)

Net Income:  $52,035 (7.2%)

• Gross Sales means all revenue from the franchise location and online sales, excluding sales or use tax.

• Cost of Goods Sold includes the costs and expenses related to retail items. This includes shrinkage (loss of product due to theft, donations, etc.) and markdowns.

• Gross Profit means Gross Sales minus Cost of Goods Sold.

• Franchise Royalty numbers do not equal 5.0% of gross sales due to certain incentives in place for multi-unit franchisees and the fact that charges for any given month are paid in the following month.

• Administration includes insurance, credit card processing fees, bad debt, bank charges, checking account fees, equipment leasing, equipment repairs, licenses, dues, office supplies, payroll processing fees, property tax, security, training expense, and travel expense.

• Facility includes rent, CAM, repairs, ancillary charges, and utilities.

• Sales Expense includes bags, tags, and related supplies.

• Labor includes wages, taxes, and benefits, but does not include compensation received by owner.

• Income before interest, taxes, depreciation, amortization, and owner’s compensation.

• Some stores have earned these amounts. Your individual results may differ. There is no assurance that you will earn as much.

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