What was the income from operations for Bath Tune Up for the year ended December 31, 2024?
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 income from operations for the year ended December 31, 2024, was $1,734,744. This figure represents the company's earnings from its core business activities before accounting for other income, expenses, interest, and taxes. A prospective franchisee can use this information to assess the profitability and financial health of Bath Tune Up.
When evaluating this figure, it's important to consider the various revenue streams that contribute to Bath Tune Up's income from operations. These include royalty income of $7,256,176, continuing franchise fees of $2,801,768, gross sales rebates of $2,085,378, initial franchise fees of $1,579,558, and product and other sales totaling $206,378. Understanding the composition of these revenues can provide insights into the different ways Bath Tune Up generates income and the relative importance of each stream.
Furthermore, it is crucial to analyze the operating expenses that impact Bath Tune Up's income from operations. These expenses include the cost of product sales ($61,171), selling and advertising expenses ($3,407,107), operating and administrative costs ($8,682,605), foreign exchange loss ($15,613), and other operating expenses ($28,018). By examining these expenses, prospective franchisees can gain a better understanding of the costs associated with running the Bath Tune Up franchise system and how efficiently the company manages its resources.
Comparing the income from operations for 2024 ($1,734,744) with the previous year, 2023 ($2,754,700), reveals a decrease in profitability. This decline could be attributed to various factors, such as changes in revenue, increased operating expenses, or shifts in market conditions. A prospective franchisee should investigate the reasons behind this decrease to assess the potential risks and opportunities associated with investing in a Bath Tune Up franchise.