What was the loss on disposal of assets for Bath Tune Up as of December 31, 2024?
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, 2024, was $0. This means that Bath Tune Up did not record any losses from disposing of assets during that year. In contrast, for the year ending December 31, 2023, Bath Tune Up recorded a loss on disposal of assets of $3,651.
This information is found within the statement of cash flows, specifically under adjustments to reconcile net income to net cash provided by operating activities. The absence of a loss in 2024, compared to the $3,651 loss in 2023, could indicate better asset management or fewer disposals of assets during the 2024 fiscal year.
A prospective franchisee should consider these figures in the context of Bath Tune Up's overall financial performance. While a loss on disposal of assets is not necessarily a negative indicator, consistent or increasing losses could suggest issues with asset management or depreciation. It would be prudent for a potential franchisee to inquire about the nature of the assets disposed of in 2023 and the company's policies regarding asset disposal and replacement.