Gourmet Provisions Intl Corp (GMPR)

[PA Portman]

Wood you need to really read that article. Focus on the gross revenue of 3.4 Million.


From the article:

Financial statements
Cousins netted $228,000 from its franchising operations last year, down from $322,000 in 2005, according to financial statements filed with the company's offering circular - a key document that must be made available to prospective franchisees in any company.

Revenue in 2006 totaled $3.4 million, up from $3.2 million the year before.

The figures do not include revenue and earnings from Cousins' corporate-owned shops. Nor do they show total sales for all restaurants, including the great majority that franchisees own.

Pryor declined to disclose those system-wide sales. Paul estimates them at about $65 million a year.

For restaurants open at least a year, total sales have shown year-over-year increases in 11 of the last 12 quarters, Pryor said.

Franchising companies license their name and business methods to franchisees. The franchisees, in turn, pay the company fees and, typically, an ongoing percentage of sales.

Cousins' initial fee is $25,000. Once in business, franchisees pay the company 6% of gross sales, plus another 2% that goes into an advertising and development fund. Franchisees also must spend another 3% on local advertising.

Those payments are "very typical" of restaurant franchises, said Bob Purvin, chairman of the American Association of Franchisees and Dealers in San Diego.