What was the total amount of royalties Antioch Pizza Shop collected in 2023?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Assets | ||||||
| Current assets | ||||||
| Cash and cash equivalents | $ | 237,291 | $ | 75,685 | $ | 126,781 |
| Accounts receivable | 22,400 | - | - | |||
| Inventory | 7,650 | - | - | |||
| Deferred commissions | 8,965 | 16,973 | - | |||
| Total current assets | 276,306 | 92,658 | 126,781 | |||
| Total assets | $ | 276,306 | $ | 92,658 | $ | 126,781 |
| Liabilities and Stockholders' Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 5,943 | $ | 8,142 | $ | 1,759 |
| Deferred revenue | 35,000 | 35,000 | 25,000 | |||
| Total current liabilities | 40,943 | 43,142 | 26,759 | |||
| Total liabilities | 40,943 | 43,142 | 26,759 | |||
| Stockholders' equity | ||||||
| Common stock, $0.001 par value, 1,000 | ||||||
| shares authorized, issued, and outstanding | 10 | 10 | 10 | |||
| Additional paid-in capital | 6,810 | 6,810 | 6,810 | |||
| Retained earnings | 245,516 | 42,696 | 93,202 | |||
| Total stockholders' equity | 252,336 | 49,516 | 100,022 | |||
| Total liabilities and stockholders' equity | $ | 293,279 | $ | 92,658 | $ | 126,781 |
STATEMENTS OF OPERATIONS
For the years ended December 31, 2024, 2023, and 2022
| | 202
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the total royalties collected in 2023 were $172,030. This figure represents the income Antioch Pizza Shop received from its franchisees based on a percentage of their sales. Royalties are a standard component of franchise agreements, serving as ongoing compensation to the franchisor for the use of their brand, systems, and support.
For a prospective Antioch Pizza Shop franchisee, understanding the franchisor's royalty income can provide insights into the financial health and stability of the franchise system. Higher royalty income generally indicates a larger and more successful network of franchisees. It also demonstrates the brand's ability to generate revenue and support its franchisees.
However, it's important to consider royalty income in conjunction with other financial metrics, such as operating expenses and net income, to get a comprehensive view of Antioch Pizza Shop's financial performance. Additionally, franchisees should inquire about the specific royalty rates and how they are calculated to fully understand their financial obligations to the franchisor.