What was the 'loss on disposal of assets' 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 loss on disposal of assets as of December 31, 2023, was $3,651. This figure reflects losses incurred from the disposal of assets during that fiscal year. It is important to note that this is a one-time expense and may not be indicative of ongoing operational inefficiencies.
For a prospective Bath Tune Up franchisee, understanding the nature of these disposed assets can provide insight into potential risks or areas of concern. Asset disposal could stem from obsolete equipment, restructuring, or other factors impacting the business's financial performance. While $3,651 may seem small, it's crucial to consider the context and reasons behind the loss.
Franchisees should inquire about the types of assets disposed of, the reasons for disposal, and whether similar disposals are anticipated in the future. This information can help assess the stability and efficiency of Bath Tune Up's operations and make informed decisions about investing in the franchise.