CASE 8 ROY ROGERS RESTAURANTS 413 EXHIBIT 6 Income Statement for a Typical Franchise (Leased Facility) AMOUNT PERCENTAGE TOTAL SALES Sales Gross sales $1,050,000 99% Discount/employee sales 6,300 Total sales $1,056,300 100% Cost of goods (food purchase) 311,500 Gross profit $744,800 71% Expenses Salaries and benefits 267,000 25 Rent 97,600 9 Paper supplies 46,400 5 Utilities 41,100 4 Interest expense 29,300 3 Equipment depreciation expense 24,100 2 Promotions 17,800 2 Maintenance 15,000 1 Real estate tax 4,600 Training 4,200 General expenses 2,200 Trash removal 1,900 Cleaning supplies 1.800 Cash register contract 1,500 2 Amortization of franchise fee 1,250 Window cleaning 1,200 Uniforms 1,000 Bookkeeping 800 Office supplies 800 Dining room plants 500 Exterminator Roy Rogers' name fee Royalties/Other Fees Royalties National advertising Total Royalties/Other fees Profit before Tax Income tax Net income 300 200 $ 560,850 53% 42,000 4 42,000 4 $ 84,000 8% 99,950 49.975 10 5 $ 49,975 5