What was the net income for Annex Brands in 2024?
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' 2025 Franchise Disclosure Document, the company's net income for the year 2024 was $7,357,000. This figure represents the profit Annex Brands retained after deducting all expenses, including the cost of revenue, selling, general, and administrative expenses, from its total revenue, and accounting for other income sources like interest. This net income figure is a key indicator of Annex Brands' overall financial performance and profitability.
For a prospective franchisee, understanding the franchisor's net income can provide insights into the financial health and stability of the company. A consistently positive net income, as seen with Annex Brands reporting $7,626,000 in 2023 and $7,476,000 in 2022, suggests that the company is well-managed and has a sustainable business model. This can be reassuring for franchisees who are considering investing in the brand, as it indicates that Annex Brands is likely to continue supporting its franchisees and investing in the growth of the franchise system.
It's important to note that while a strong net income is a positive sign, prospective franchisees should also consider other factors such as the company's revenue trends, expense management, and cash flow. Examining these financial aspects in conjunction with the net income can provide a more comprehensive understanding of Annex Brands' financial performance and its potential impact on the success of individual franchise locations. Additionally, franchisees should compare these figures with industry benchmarks to assess how Annex Brands performs relative to its competitors.