What was the net income for Annex Brands for the year ending September 30, 2023?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| Cash flows from operating activities: | ||||
| Net income | $ 7,357,000 | $ | 7,626,000 | $ 7,476,000 |
| Adjustments to reconci |
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 ending September 30, 2023, was $7,626,000. This figure represents the profit Annex Brands earned after deducting all expenses from its total revenues during that fiscal year. Net income is a key indicator of a company's profitability and financial health.
For a prospective franchisee, understanding the franchisor's net income can provide insights into the stability and potential 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. However, it is important to note that past performance is not necessarily indicative of future results.
It's also important to consider how Annex Brands utilizes its net income. The document indicates that a significant portion of cash flow is allocated to distributions to shareholders. For example, in 2023, while the net income was $7,626,000, distributions to shareholders amounted to $6,347,000. This practice can impact the company's ability to reinvest in growth initiatives, support franchisees, or manage unforeseen financial challenges. Prospective franchisees should evaluate whether the distribution policy aligns with their expectations for franchisor support and system development.
In addition to net income, prospective franchisees should review the complete financial statements, including the balance sheets and cash flow statements, to gain a comprehensive understanding of Annex Brands' financial condition. Analyzing these statements can reveal trends, strengths, and weaknesses that may not be apparent from the net income figure alone. Consulting with a financial advisor is recommended to fully assess the financial health of the franchisor and the potential risks and rewards of investing in an Annex Brands franchise.