What was the net income for Annex Brands in 2022?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue: Continuing franchise fees Freight Insurance, customer referrals and other Merchandise and equipment sales Unit franchises sold | $ 14,919,000 | $ 15,167,000 | $ 15,260,000 |
| 2,487,000 | 3,985,000 | 3,594,000 | |
| 6,196,000 | 4,223,000 | 4,179,000 | |
| 661,000 | 775,000 | 634,000 | |
| 673,000 | 387,000 | 428,000 | |
| Total revenue | 24,936,000 | 24,537,000 | 24,095,000 |
| Cost of revenue: Cost of freight Cost of merchandise and equipment sold and direct franchise costs Cost of insurance premiums, claims, customer referrals and other | 2,299,000 | 3,767,000 | 3,367,000 |
| 644,000 | 679,000 | 547,000 | |
| 4,888,000 | 3,173,000 | 3,301,000 | |
| Total cost of revenue | 7,831,000 | 7,619,000 | 7,215,000 |
| Gross profit | 17,105,000 | 16,918,000 | 16,880,000 |
| Selling, general, and administrative expenses | 10,270,000 | 9,645,000 | 9,592,000 |
| 6,835,000 | 7,273,000 | 7,288,000 | |
| Other income: Interest income Other income, net | 503,000 | 327,000 26,000 | 12,000 176,000 |
| Other income, net | 522,000 | 353,000 | 188,000 |
| Net income | $ 7,357,000 | $ 7,626,000 | $ 7,476,000 |
Source: Item 21 — Financial Statements (FDD page 109)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, the net income for the company in 2022 was $7,476,000. This figure represents the profit Annex Brands retained after deducting all expenses, including the cost of revenue and administrative expenses, from its total revenue. Net income is a key indicator of a company's profitability and financial health.
For a prospective Annex Brands franchisee, understanding the franchisor's net income can provide insights into the overall stability and success of the franchise system. A consistently positive net income suggests that the franchisor is managing its finances effectively and has a sustainable business model. This can be reassuring for franchisees who are considering investing in the brand.
It's important to note that while a strong net income is a positive sign, franchisees should also consider other financial factors, such as revenue trends, cost of goods sold, and operating expenses, to get a comprehensive understanding of the franchisor's financial performance. Additionally, prospective franchisees should compare Annex Brands's financial performance to that of other franchise systems in the same industry to assess its relative competitiveness.