What were the advertising expenses for Bath Tune Up for the year ended December 31, 2023?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
t L | You (only if you purchase two territories) and us |
HFC KTU LLC (dba Kitchen Tune-Up and Bath Tune-Up) Statements of Operations
| For the Years Ended | |||||
|---|---|---|---|---|---|
| December 31, 2024 | December 31, 2023 | ||||
| Revenue | |||||
| Royalty income | $ | 7,256,176 | $ | 6,827,867 | |
| Continuing franchise fees | 2,801,768 | 2,588,937 | |||
| Gross sales rebates | 2,085,378 | 2,151,381 | |||
| Initial franchise fees | 1,579,558 | 2,632,960 | |||
| Product and other sales | 206,378 | 207,153 | |||
| Total Revenue | 13,929,258 | 14,408,298 | |||
| Operating expenses | |||||
| Cost of product sales | 61,171 | 38,689 | |||
| Selling and advertising | 3,407,107 | 3,309,601 | |||
| Operating and administrative | 8,682,605 | 8,310,719 | |||
| Loss on disposal of assets | — | 3,651 | |||
| Foreign exchange loss (gain) | 15,613 | (9,062) | |||
| Other operating expense | 28,018 | — | |||
| Total Operating expenses | 12,194,514 | 11,653,598 | |||
| Income from operations | 1,734,744 | 2,754,700 | |||
| Other income (expense) | |||||
| Interest income | 83,205 | 54,737 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 51–52)
What This Means (2025 FDD)
According to Bath Tune-Up's 2025 Franchise Disclosure Document, the company's selling and advertising expenses for the year ending December 31, 2023, totaled $3,309,601. This figure is part of the overall operating expenses, which totaled $11,653,598 for the same period.
For a prospective Bath Tune-Up franchisee, this indicates the level of investment the company makes in advertising and marketing efforts to support the brand and its franchisees. It is important to note that this amount reflects the expenses incurred by the company itself and may not directly correlate with the advertising spend required or recommended for individual franchisees.
Understanding the franchisor's advertising expenses can help potential franchisees assess the brand's marketing strategy and the support they can expect in terms of brand awareness and customer acquisition. It's also worth comparing these figures with those of other franchise systems to gauge Bath Tune-Up's commitment to marketing relative to its competitors. Franchisees should inquire about how these advertising funds are allocated and what portion, if any, is used for local advertising initiatives that directly benefit individual franchise locations.
It is also important to note that the advertising expenses are included within the broader category of 'Selling and advertising' expenses. This suggests that the reported figure may encompass a range of activities beyond just advertising, such as sales-related costs. A prospective franchisee may want to clarify the specific components included in this line item to gain a more detailed understanding of how the company invests in promoting the Bath Tune-Up brand.