What was the amount of interest income for B Bops in 2024?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| _ | 2024 | 2023 | 2022 | 2021 | ||||
|---|---|---|---|---|---|---|---|---|
| Other Income | ||||||||
| Interest Income | $ | 20,000 | $ | 9,599 | $ | 3,144 | $ | 3,506 |
Interest income related to the receivable above was $4,758 for the year ended December 31, 2024, $3,222 for the year ended December 31, 2023, $3,144 for the year ended December 31, 2022, and $3,506 for the year ended December 31, 2021.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 52–53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the company's interest income for the year ended December 31, 2024, was $20,000. This figure represents income earned from sources other than the company's primary operating activities, such as royalties from franchisees. In addition to the general interest income, B Bops also reported interest income of $4,758 related to a receivable from the sole shareholder. Therefore, the total interest income for B Bops in 2024, considering both sources, was $24,758.
Interest income can be an important indicator of a franchise's financial health and stability. For B Bops, the interest income contributes to the overall net income, which was reported as $168,453 for the same period. This income can be used to cover operating expenses, invest in growth opportunities, or distribute profits to shareholders. The fact that B Bops earns a notable amount of interest income suggests that the company has effective cash management practices and is generating returns on its assets.
Prospective franchisees should consider the interest income as part of their overall assessment of B Bops's financial performance. While it is not the primary source of revenue, it demonstrates the company's ability to generate income from various sources and manage its finances effectively. Understanding the different components of income, including interest income, can provide valuable insights into the financial stability and long-term viability of the franchise system.