What was the 'income from operations' for Bath Tune Up as of December 31, 2023?
Bath_Tune_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 | ||
| Other expense, net (229,065) (537,961) | ||
| Total Other income (expense) (145,860) (483,224) | ||
| Net income $ 1,588,884 $ 2,271,476 |
Source: Item 23 — RECEIPTS (FDD pages 52–222)
What This Means (2025 FDD)
According to Bath Tune Up's 2025 Franchise Disclosure Document, the income from operations as of December 31, 2023, was $2,754,700. This figure represents the company's earnings from its core business activities before accounting for other income, expenses, interest, and taxes. It is calculated by subtracting total operating expenses from total revenue. For a prospective franchisee, this indicates the profitability of Bath Tune Up's business model at the corporate level.
Specifically, Bath Tune Up's total revenue for the year ending December 31, 2023, was $14,408,298, which included revenue streams such as royalty income ($6,827,867), continuing franchise fees ($2,588,937), gross sales rebates ($2,151,381), initial franchise fees ($2,632,960), and product and other sales ($207,153). The total operating expenses amounted to $11,653,598, encompassing costs like product sales ($38,689), selling and advertising ($3,309,601), and operating and administrative expenses ($8,310,719).
Understanding the components of revenue and expenses provides insight into how Bath Tune Up generates income and manages costs. A potential franchisee should analyze these figures to assess the financial health and stability of the franchisor. It's important to note that the franchisee's own income from operations may vary based on factors such as location, market conditions, and their ability to manage expenses effectively. Therefore, while this corporate-level data offers a benchmark, individual performance can differ significantly.
It is also important to consider that while 'income from operations' provides a view into the core profitability of the business, 'net income' reflects the overall profitability after accounting for other income and expenses. For Bath Tune Up, the net income as of December 31, 2023, was $2,271,476. Reviewing both metrics can provide a more comprehensive understanding of the company's financial performance.