Handel's Intelligence OS — Franchise Operations Platform

Net Sales MTD

$23.74M

vs $24.1M plan

9.4%vs prior year

Target: $24.1M

$0.4M below plan due to 6 delayed-reporting locations and softer September start.

Gross Margin

66.9%

-1.1 pts vs 68.0% plan

1.1%vs plan

Target: 68.0%

Dairy and inclusion cost pressure accounts for 46% of the gap. 9 stores driving most variance.

Est. Store Contribution

17.6%

$4.18M absolute

2.1%vs plan

Target: 19.7%

Margin pressure and delivery fees compressing contribution below plan.

Labor % of Sales

24.8%

+0.7 pts vs plan

0.7%vs plan

Target: <24.0%

4 locations driving 60% of labor overage. Scheduling optimization opportunity identified.

Royalties Collected MTD

$1.42M

6% of net sales · 184 franchisees

9.4%vs prior year

Target: $1.45M

1 franchisee (Midwest Scoops) 14 days past due. All others current.

Production Waste MTD

$186.4K

+10.8% vs prior year

10.8%vs prior year

Target: <$169K

Scottsdale ($6.8K) and Katy ($4.2K) account for 59% of excess waste above target.

Margin Intelligence

Why Did Gross Margin Decline?

Plan: 68.0% → Actual: 66.9% · -1.1 pts · -$96.7K vs plan

AI Analysis · 94% confidence

Margin Bridge

Ranked Drivers

Dairy & inclusion purchase costs

-0.51 pts

Batch overproduction & end-of-day waste

-0.29 pts

Delivery-channel mix & fees

-0.22 pts

Labor scheduling inefficiency

-0.13 pts

Higher transaction volume

+0.35 pts

Pricing & favorable flavor mix

+0.16 pts

Evidence sources

Network P&L Summary

September 2026 MTD

Metric	Actual	Plan	Prior Yr	vs Plan	vs PY
Net Sales	$23.74M	$24.1M	$21.7M	$-0.4M	+9.4%
Cost of Goods Sold	$7.86M	$7.69M	$7.12M	+$0.17M	+10.4%
Gross Profit	$15.88M	$16.41M	$14.58M	$-0.53M	+8.9%
Gross Margin %	66.9%	68%	67.2%	-1.1 pts	-0.3 pts
Labor	$5.89M	$5.78M	$5.34M	+$0.11M	+10.3%
Labor % of Sales	24.8%	24%	24.6%	+0.8 pts	+0.2 pts
Occupancy & Other	$2.14M	$2.17M	$1.98M	$-0.03M	+8.1%
Delivery Fees	$0.48M	$0.39M	$0.31M	+$0.09M	+54.8%
Est. Store Contribution	$4.18M	$4.74M	$3.91M	$-0.56M	+6.9%
Store Contribution %	17.6%	19.7%	18%	-2.1 pts	-0.4 pts

Revenue by Region

MTD Breakdown

Franchisee Health

P&L Summary

1 at risk

Heritage Scoops Group

Low

Locations

Rev MTD

$648.1K

Margin

66.4%

Buckeye Creamery LLC

Low

Locations

Rev MTD

$471.3K

Margin

68.1%

Desert Sun Franchising LLC

Medium

Locations

Rev MTD

$658.5K

Margin

63.8%

Lone Star Scoops LLC

Low

Locations

Rev MTD

$628.8K

Margin

67.6%

Midwest Scoops Inc.

High

Locations

Rev MTD

$312.1K

Margin

64.2%

⚠️ Royalty payment overdue

Sunshine Scoops Group

Medium

Locations

Rev MTD

$322.1K

Margin

65.9%

Pacific Coast Ice Cream Co.

Low

Locations

Rev MTD

$527.8K

Margin

67.9%

Capital City Scoops

Low

Locations

Rev MTD

$333.5K

Margin

68.2%

Store Contribution Distribution

196 Locations

22%+

14.3%

20–22%

27.6%

18–20%

34.2%

15–18%

15.8%

<15%

8.2%

16 locations below 15% contribution — primary remediation focus.